China's processing trade export revenue has decreased by 21.2 percent on a year base in July. Export to EU decreased to $81.67 billion in the first seven months, decreasing by 3.6 percent year on year, and in July alone, the figure decreased by 21.2 percent.

To tackle the difficulties faced with processing trading companies, the Ministry of Commerce aligned with six more ministries to set up domestic platforms for the companies' de-stocking.

An expo of processing trading products will be held in Dongguan city, a gather place of processing trade export companies in Guangdong province, which accounts for 1/4 of China's annual export. And the expo will be hold between September 16th to 19th.

According to local news, 1325 companies from 25 provinces have applied to participate in the expo, and more than 100,000 kinds of products will be exhibited.

"Situations will still be serious for those companies, and may be worse in H2 considering gloomy economy in some developed countries," said Jiang Yaoping, vice minister of commerce.

The Ministry of Commerce has also shortened the time of approval for export companies to sell products at home and also simplified approval processes, interest rate of delayed tax for those companies has been cut from 1.12 percent to 0.32 percent.

With the shrink of export, domestic market has been a shield for processing trading companies, ratio of domestic sales has increased from 5.87 percent in 2008 to 40 percent in H1 this year, said a president of one of the processing trade products companies.

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