China to ensure steady, high-quality growth in foreign trade

China will help foreign trade enterprises through current challenges and maintain steady and high-quality growth of the sector to stabilize the economy, industry chains and supply chains, according to a circular released by the State Council on May 26.

Local governments should establish services and safeguard systems for key foreign trade enterprises, keep track of and solve their difficulties in a bid to support their production and operation. Support from related departments will be provided to stabilize foreign trade supply chains for enterprises affected by COVID-19, the circular said.

Smooth logistics for foreign trade goods will be ensured. While incorporating them into significant goods categories with priorities in transportation, local governments should streamline logistics procedures to reduce the waiting time for berths on international liners, and ensure the transport of important parts, devices and products.

Marine logistics services will be strengthened to keep foreign trade steady. Local governments should coordinate with logistics and freight forwarding enterprises for rapid transit of containers with refrigerated and dangerous goods, to improve efficiency at main ports.

As a move to accelerate and improve cross-border e-commerce, policies facilitating export goods return and exchange will be put in place soon, the circular said.

China will expand short-term export credit insurance and export credit, while further enhancing financial support to micro, small and medium-sized enterprises. Based on market-oriented principles, a list of micro, small and medium-sized enterprises in urgent need of funds will be given more attention and support.

Renminbi exchange rate will be kept generally steady on a reasonable and balanced level in order to improve foreign trade enterprises’ ability to respond to exchange rate risks. Banking institutions are encouraged to strengthen products and services innovation and provide comprehensive finance services for foreign trade enterprises, including RMB trade financing and settlement, with continuous optimization in cross-border RMB settlement.

Digital and intelligent transformation of China Import and Export Fair (Canton Fair) and other exhibits will be accelerated through active application of virtual reality (VR), augmented reality (AR) and big data, to enhance connectivity with cross-border e-commerce platforms.

Innovative, green and high value-added products are also encouraged to expand in international markets.

Moreover, China will support the stable growth of processing trade. Labor-intensive foreign trade industries will be transferred gradually to safeguard employment, boost rural vitalization and regional coordinated development.