Ministry of Commerce: To develop new forms and models of trade to encourage financial institutions to support overseas warehouse construction

On August 14, Assistant Minister of Commerce Ren Hongbin introduced the "Opinions on Further Stabilizing Foreign Trade and Foreign Investment" at the regular policy briefing of the State Council. He pointed out that the Guideline will continue to open wider to the outside world, emphasizing the importance of legal compliance, fairness and transparency, and treating both domestic and foreign investment equally. It also puts forward 15 policies and measures to stabilize foreign trade and foreign investment in four areas. The details are as follows:

Ministry of Commerce: Develop new forms and models of trade, encourage financial institutions to support overseas warehouse construction

First, we will improve fiscal, taxation and financial policies. It mainly includes: increasing support for export credit insurance, actively ensuring the risk of cancellation of orders before shipment, and allowing foreign trade enterprises to reasonably change the relevant term of short-term insurance contracts in light of the situation of order cancellation and delay under the epidemic situation. For foreign trade enterprise financing support, develop national financing guarantee fund, local financing guarantee institutions, strengthening the cooperation of the "government + bank + insurance", Banks with the help of good third party verification trade authenticity, boost the enthusiasm of the financial institutions to issue foreign trade financing, to further expand lending to micro, small and medium enterprises of foreign trade. The special quota of 1.5 trillion yuan for re-lending and rediscount introduced by the People's Bank of China is equally applicable to foreign-funded enterprises. The scale of new loans extended by the Export-Import Bank can be used to support key foreign-funded enterprises. Local competent commercial administrations should coordinate with financial institutions in the banking sector to ensure the financing needs of foreign-funded enterprises.

Second, we will develop new forms and models of trade. In the first half of this year, the import and export of cross-border e-commerce retail rose 26.2 percent, and the export of market procurement trade increased 28.8 percent. This time, we will step up support for the development of new forms of business such as cross-border e-commerce and market purchase and trade. This includes: we will pilot a new number of market purchase and trade methods, and strive to expand the number from the current 14 to about 30. We will support cross-border e-commerce platforms, cross-border logistics and overseas warehouses through funds and other means, and encourage financial institutions to support the construction of overseas warehouses. We will improve tax refund services for foreign trade comprehensive service enterprises, speed up the process of tax refund, and promote more qualified foreign trade comprehensive service enterprises to become "certified business operators" of the Customs. Launch "One Country Online Exhibition" for key markets.

Third, we will make customs clearance and personnel exchanges easier. It mainly includes: further standardizing and reducing import and export compliance costs, improving the transparency of port charges, and reducing the burden on import and export enterprises. On the premise of strictly meeting the requirements for epidemic prevention, China will continue to negotiate with relevant countries on the establishment of "fast track" and fully implement the "fast track" for qualified foreigners who come to China to resume work and production. We will support the establishment of exclusive channels for foreign businesses to enter the market for procurement in the light of local characteristics in places where market procurement is being conducted on a trial basis.

Fourth, we will support key industries and enterprises. It mainly includes guiding the transfer of processing trade in a gradient way, encouraging localities where conditions permit to support the transfer of processing trade by setting up funds and other means, fostering a number of processing trade industrial parks jointly built in the east with the central and western regions and the northeast, and improving the mechanism for connecting the transfer of processing trade industries. We will increase support for labor-intensive export enterprises on the basis of implementing preferential policies such as tax and fee reductions. Help large backbone processing and trading enterprises to solve problems, sort out their needs, "one enterprise, one policy" to do a good job in service. We will increase support and services for key foreign-funded projects with an investment of more than US $100 million. We will provide more services and support for the use of sea, land, energy and environmental protection for key foreign-funded projects with an investment of more than US $100 million in the early stage, under construction and in investment. We will promote the facilitation of the management and services of the accreditation of high-tech enterprises and help enterprises understand the requirements and procedures for the accreditation.

Ren further pointed out that since this year, the COVID-19 epidemic has had a huge impact on the development of foreign trade. Thanks to our hard work, China's imports and exports in the first seven months of this year were better than expected, thanks to the following characteristics:

First, imports and exports are gradually stabilizing. Exports have been positive for four months in a row since April. In terms of international comparison, according to the latest data from the WTO, our import and export performance is better than that of major global economies.

Second, the distribution of the international market continues to improve. The share of exports to emerging markets rose by 0.2 percentage points, accounting for 49% of our exports. Asean has become our largest trading partner.

Third, private enterprises have become the "stabilizer" of foreign trade. Private enterprises accounted for half of China's total exports, up by 6.4% to 54.5%.

Fourth, the commodity structure continues to optimize. Exports of mechanical and electrical products rose 0.2 percent, accounting for 58.5 percent.

Fifth, the general trade position is more prominent.

Sixth, cross-border e-commerce and other new businesses are developing rapidly.

It is reported that in the first seven months of this year, foreign trade and foreign investment rebounded well and better than expected, making positive contributions to the "six stability" and "six guarantees". Imports and exports totaled 17.2 trillion yuan, down 1.7% year on year. Exports have been growing for four consecutive months since April. We utilized 5.35.65 trillion yuan of foreign investment, up 0.5%, and a number of major foreign-funded projects were launched at a faster pace.

In the next step, in order to keep the main body, the market and the orders, we will mainly work from the following six aspects:

First, we need to promote as soon as possible a number of new trials of market procurement and trade in places where conditions permit, so as to boost the export of micro, small and medium-sized enterprises.

Second, we will guide local governments to speed up the construction of comprehensive pilot zones for cross-border e-commerce, improve the public service system in light of local realities and advantages, and give full play to their advantages in industrial agglomeration.

Third, we will strengthen investment in new forms of business such as cross-border e-commerce through the Service trade Innovation and Development Guidance Fund.

Fourth, we will encourage export-Import Bank, China Export and Credit Insurance Company and other financial institutions to actively support the construction of overseas warehouses under the premise that risks are under control.

Fifth, we will work with relevant departments to facilitate the development of comprehensive foreign trade service enterprises so that more enterprises that meet the certification standards will become certified operators by the Customs.

Sixth, organize cloud exhibitions and make good use of cloud platforms. Promote "online display a country", at the same time preparing for the 128th Canton fair, the 3rd import expo, support and encourage the local government, key industry association to hold more online exhibition, through domestic business association, foreign institutions, overseas Chinese enterprises association, the active docking foreign association, help the export enterprises in the online or offline docking more overseas buyers, help enterprise to open up overseas markets, access to new orders from overseas.