Government measures broadened to ensure continued stability in 2022
China will continue measures aimed at ensuring the stability of foreign trade in 2022, after it turned out to be a strong moment in the economy this year, an executive meeting of the State Council chaired by the State Council decided. Premier Li Keqiang earlier this week.
These efforts will include widening openness, introducing measures to address the difficulties and challenges, ensuring inter-cyclical adjustments and helping to mitigate the problems facing businesses, with particular emphasis on ’emphasis on supporting small businesses. The measures will help secure business orders, anchor market expectations and support the steady growth of foreign trade.
âForeign trade has been a highlight of the Chinese economy this year, but we still need to be fully prepared for the challenges to maintain stability in foreign trade next year. With China so deeply integrated into the world economy, stable foreign trade is crucial for steady economic growth. Early action should be taken whenever possible, âLi said.
Increased political support for imports and exports was decided at the meeting. Tax and fee reductions will be implemented and export tax refunds will be processed faster, taking no more than six business days.
Banks will be guided to develop new products that meet the needs of foreign trade enterprises, including financing based on insurance policies. The renminbi exchange rate will remain stable, and banks will be encouraged to offer currency forward settlement and sale services in a targeted manner, in order to make foreign trade enterprises more resilient to currency risks.
The conditions for underwriting and settling claims for export credit insurance will be improved, in order to intensify support for micro, small and medium-sized enterprises in foreign trade and also to guard against the risk of cancellation. of orders before shipment.
The development of new forms of foreign trade such as cross-border electronic commerce will be encouraged. Support for the development and use of warehouses abroad will also be strengthened in a market-oriented approach.
“Market expectations regarding foreign trade are trending down. Anchoring the expectations of micro, small and medium-sized enterprises in foreign trade requires clear and targeted measures, to help them reduce costs and overcome difficulties”, said Li said. âPrivate enterprises are the main export force, many of which are micro, small and medium enterprises, including those in cross-border e-commerce. “
Long-term contracts between foreign trade companies and shipping companies will be encouraged. Financial institutions will be supported to provide inclusive logistics related finance to eligible micro and small foreign trade enterprises.
The meeting also discussed the Comprehensive Regional Economic Partnership, which will enter into force on January 1. Companies will be supported to seize the opportunities resulting from the implementation of the RCEP to strengthen their competitiveness in international markets.
âActive participation in regional economic cooperation within the framework of RCEP will serve as a key fulcrum to stabilize foreign trade. Most of the 15 participating countries are export oriented economies, and 90% of the goods will be duty free. The rules of origin in the RCEP will also play a positive role in maintaining the stability of industrial chains, âLi said.
“We must seize the opportunity and provide a set of services to attract foreign enterprises and investment and encourage more micro, small and medium enterprises and cross-border e-commerce enterprises to go global,” he added.