China is seeking to establish a legalized system of barter trading to help companies reduce inventories and boost profits, an official with the China National Excess Inventory Association has said.

China has launched its first regulations for barter trading in a bid to promote its sound development, said Mao Deshu, vice president of the association, on Saturday

Bartering is business by which goods or services are directly exchanged for other goods or services without using money.

“China’s barter trade is at a burgeoning stage. It is important to establish sound market order,” said Mao, who participated in drafting the rule.

Companies will gradually find that bartering is a good way to move surplus inventories, attract new customers and increase sales, the official added.