China to adopt more targeted steps to benefit foreign trade companies

Wang Shouwen, vice minister of commerce and China's deputy international trade representative, told a news briefing that the commerce ministry will initiate action to improve foreign trade enterprises' profitability and smooth transportation and logistics; help enterprises cultivate new clients and clinch new orders; and further lower their costs.

The ministry will also facilitate the development of new foreign trade formats like cross-border e-commerce and overseas warehouses.

From January to April, China's foreign trade expanded by 10.1 per cent year on year to $1.98 trillion. But in the same period last year, foreign trade grew by 38.7 per cent year on year, official data showed.

Wang said external and internal uncertainties like the weak global economic recovery, softer demand, high-level global inflation, performance decline in domestic logistics, some clogs in industrial and supply chains, and elevated raw material prices have all piled pressure on the foreign trade sector, official Chinese media reported.

Jin Hai, director general of the department of general operation in the general administration of customs, said customs authorities will continue to enhance regulations and services to guarantee smooth export and import logistics.

They will also fine-tune specific measures at local levels to ease burdens of enterprises and stabilise their expectations.

A guideline the State Council, China's Cabinet, unveiled on May 26 specified 13 targeted measures, requiring fine-tuned services for foreign trade enterprises and unimpeded cargo logistics.

It also said the country should boost development of cross-border e-commerce; strengthen financial support; accelerate the application of hedging tools to manage exchange rate risks; promote online platforms to expand imports and exports; encourage the firms that make value-added products to go overseas; and guide relocation of process trade-related labor-intensive industries to interior regions.

Zhou Yu, an official with the international department of the People's Bank of China (PBOC), the country's central bank, said at the news briefing the PBOC will continue to reduce financing costs of the real economy, including stepping up financial support for foreign trade enterprises.

The PBOC is instructing its subordinate branches and financial institutions to issue specific implementation plans of the 23 measures it released jointly with the State Administration of Foreign Exchange on April 18, to bring real benefits to foreign trade enterprises, Zhou said. The 23 measures aim to support the businesses and people affected by the COVID-19 outbreaks.

ALCHEMPro News Desk (DS)