At present, China's foreign trade is facing an increase in uncertainty, instability and imbalance, in order to promote the stable development of foreign trades, the General Office of the State Council was presented on December 29th, 2021 with the following opinions:
- Potentials of import and export
Leading role of overseas warehouses: Actively use the service trade innovation and development guidance fund to promote the high-quality development of overseas warehouses, and increase the financial support for traditional foreign trade enterprises, cross-border e-commerce and logistics enterprises to build supports for overseas warehouses.
Commodity imports: Actively protect the domestic supply of commodities and the overall protection of commodity imports in all aspects of stable operation.
Import potential of consumer products: Further adjust and optimize the list of cross-border e-commerce retail imports and expand import categories to meet diversified consumer demands. Timely organize seasonal international consumption promotion activities to promote the imports.
- Protection of foreign trade industry chain supply chain stability and smooth
Relief of international logistics pressure: Organize small-and-medium-sized foreign trade enterprises and shipping enterprises for direct customer docking, and support financial institutions to provide eligible small-and-medium-sized foreign trade enterprises with inclusive financial support in logistics.
Newly-cultivated foreign trade innovation and development pilots: Set up a number of cross-border e-commerce comprehensive pilot zones. Cultivate a number of offshore trade center cities (regions) to support the innovative development of offshore trade.
Development of processing trade: Strengthen the national industrial park for processing trade cultivation and construction, deepen the cooperation and co-construction between the east and the central & western, northeast regions, encourage and support the local development of key projects. Temporarily exempt processing trade enterprises from tax moratorium interest on domestic sales until the end of 2022 to reduce the burden on enterprises.
Dual-cycle trade enterprises: Support dual-cycle trade enterprises to strengthen key technology and business model innovation. Promote the solutions to the problems encountered by enterprises in the development of domestic and foreign trade with the same line, the same standard and quality products, expand trade channels, and improve the supply chain network.
Liberalization and facilitation level of trade: Continue to accelerate the progress of export tax refunds, and compress the average time for normal export tax refunds by the tax authorities to within 6 working days in 2022. Study the timely organization of booster immunization against the Coronavirus vaccine for overseas employees of Chinese-funded enterprises to help them carry out economic and trade activities overseas.
Trade adjustment assistance: Helps stabilize the supply chain of the industry chain.
- Stabilize market entities and keep the orders
Export credit as the insurance: Further optimize export credit insurance underwriting and claims conditions, actively expand industrial chain underwriting, expand the coverage and scale of underwriting for small-and-medium-sized foreign trade enterprises, and increase the protection against the risk of order cancellation before shipment and support for cross-border e-commerce and overseas warehouses.
Short-term insurance under the insurance policy financing business: Encourage banking institutions to combine the needs of foreign trade enterprises to innovate policy financing and other related products, qualified localities may use methods as "re-loan + policy financing" to provide financing support to small-and-micro-sized foreign trade enterprises.
Foreign trade credit allocation: In the context of real transactions, guide financial institutions to provide supply chain financial products to the upstream and downstream enterprises of large backbone foreign trade enterprises.
Foreign trade enterprises' ability to cope with exchange rate risks: Strengthen publicity and training, support and guide foreign trade enterprises to establish a neutral awareness of exchange rate risks and enhance the awareness and ability of foreign trade enterprises to hedge those risks.
Actively and steadily promote RMB cross-border trade settlement: Steadily push forward the construction and promotion of RMB cross-border payment system.
Employment in the foreign trade field: For textiles, clothing, furniture, shoes and boots, plastic products, bags, toys, stone, ceramics, advantageous characteristics of agricultural products and other labor-intensive products export enterprises, the localities should implement the policy measures to reduce the burden of stabilizing and expanding employment, increase the policy support for export credit and export credit insurance.
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Mr. Mike Chang (Partner)