China’s measures to stabilise foreign trade and boost production in COVID-19 outbreak

Publish time:2/25/2020 12:00:00 AM      Source: CCM
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Summary: China has issued several policies to stabilise foreign trade and boost production. This reflects the government’s efforts to reduce impacts on the sector by the COVID-19 outbreak, which is unlikely to continue for a long term as a result.
Recent COVID-19 outbreak has hit Chinese foreign trade to some extent; however, such impact is unlikely to keep on for a long run, as China has issued several policies aimed at improving the business environment, helping enterprises resume production, and facilitating import & export trade:        
    • Ministry of Commerce (MOFCOM): Its Notice of Helping Foreign Trade Companies Overcome Difficulties and Reduce Losses in COVID-19 Outbreak outlines that:
      • Players will be helped maintain legal rights & interests and lower economic losess
      • Six chamber of commerce for import and export related to the textile & apparel, metals & minerals & chemicals, light industrial products & arts-crafts, foodstuffs & native produce & animal by-products, machinery & electronic products, and medicines & health products sectors will be instructed to provide force majeure proof, legal consulting, coordination of exhibition problems, and supplier & purchaser matchmaking services   
  • The People’s Bank of China and the Ministry of Finance (MOF) underlined efforts to offer micro/small-scale and private enterprises more credit aids or subsidised loans
Cities’ move in response to the government was as below:
  • Zhengzhou City (in Henan Province): Its customs authority released a Special Working Program of Further Preventing the Epidemic and Stabilising Foreign Trade, showing efforts to support local companies to resume their production. It comprises 15 measures of:
    • Setting up fast-track procedures to provide simple, safe and fast channels for supplies transit
    • Implementing enterprise preference policies
    • Boosting imports of livelihood materials and exports of regional distinctive agricultural products
    • Supporting local enterprises to restore production
    • Maintaining orderly imports and exports
  • Ningbo City (in Zhejiang Province): It issued 18 measures benefiting local small/medium-sized enterprises:
    • Offering subsidies to foreign trade companies failing to join exhibitions due to the epidemic
    • Raising proportions of insurance expenses for enterprises which can’t begin their transport as schedule to 50%
    • Shortening loss assessment time of credit insurance cases to within 2 months
    • Optimising export tax refund/exemption services
    • Giving greater foreign-related law aid to foreign trade companies
  • Jiangsu, Shanghai, Beijing, Chongqing, and Shandong: Regional small/medium-sized enterprises were allowed to delay payments of social insurance and taxes, enjoy reduced/free rent, and extend repayment period   

Find more information at CCM Glyphosate China E-News Issue 2, 2020 or email to know more. 

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