Take multiple measures to stabilize foreign investment and stabilize foreign trade: 

Support foreign-funded enterprises to resume production and operation, establish a service mechanism for key foreign-funded enterprises to resume work and production, implement special tracking services, help key foreign-funded enterprises solve prominent problems such as resumption of work and production, logistics and transportation, and epidemic prevention materials, and effectively stabilize the development expectations of foreign-funded enterprises. Ensure the smooth progress of major foreign-funded projects, use the online service system for major foreign-funded projects, municipal and district linkage, online and offline coordination, ensure that projects under negotiation, contract signing, and construction can resume operation as soon as possible, and implement special tracking services. Actively strive for a number of major projects to land as soon as possible. Support multinational companies to set up regional headquarters and foreign-funded centers R&D in Shanghai. 

We should earnestly help foreign trade enterprises to bail out, speed up the implementation of the foreign trade support policies issued by the state, and allow the input VAT input tax amount transferred out in the previous period to be deducted after the state implements the policy of uniform tax rebate rates for export products. Where an enterprise declares the export business of tax rebate and obtains export credit insurance compensation because it is unable to collect foreign exchange, it shall treat the export credit insurance compensation as a receipt of foreign exchange and apply for export tax rebate. Encourage port enterprises to reduce or waive cargo storage fees within a specific period, encourage shipping companies to reduce and waive demurrage fees within a specific period, and advocate port and shipping related enterprises to reduce or waive logistics operation costs related to foreign trade import and export. Strengthen policy-oriented financial support for foreign trade enterprises. Increase the support of export credit insurance, expand the coverage of small and medium-sized enterprises, optimize the conditions for underwriting claims, open an online loss reporting and claim channel in the "single window" of Shanghai, establish a premium deferral mechanism and a fast compensation mechanism, and ensure that the insurance should be guaranteed to the fullest and the compensation can be paid quickly. For small and medium-sized micro and medium-sized enterprises that meet the conditions of specialization and special innovation, on the basis of the original export credit insurance rate, implement a phased fee reduction of not less than 10%, and increase the support for insurance policy financing. Support the Shanghai branch of the Export-Import Bank of China to set up a special credit line for import and export business, establish a fast-track review channel, actively use policy-based preferential interest rate loans or strive for other preferential interest rate policies from the head office to reduce the financing costs of enterprises.

Focus on stabilizing the expectations and confidence of foreign-funded foreign trade enterprises, strengthen face-to-face communication with senior executives of foreign-funded enterprises, actively introduce the epidemic prevention and control situation and strategies in our city through video conferences of executives of multinational companies and online roundtables on government-enterprise communication of foreign-funded enterprises, fully listen to the opinions and suggestions of foreign-funded enterprises, establish a normalization mechanism for consultation and problem solving, help foreign-funded enterprises solve practical problems, increase the intensity of communication between headquarters enterprises, and effectively repair and boost the confidence of foreign-funded enterprises. Assist foreign trade enterprises to perform orders, implement customs clearance facilitation measures, adopt the mode of exempt consignees and consignors from inspection, support enterprises to handle customs clearance business online, establish a green channel for customs clearance of key materials of key enterprises, and improve the efficiency of customs clearance and withdrawal of goods. The Municipal Council for the Promotion of International Trade will issue free force majeure factual documents related to the new crown pneumonia epidemic for qualified and needy enterprises affected by the epidemic. The Shanghai International Arbitration Center and other relevant dispute resolution institutions provide legal advice and assistance for foreign trade enterprises to safeguard their rights, and reduce, refund and postpone the payment of eligible arbitration fees. Facilitate the handling of invitation letters and entry and exit formalities for foreign employees and their families of foreign-funded enterprises stationed in Shanghai, global executives and professional and technical personnel who carry out important business activities, and important overseas customers of foreign trade enterprises.

Better play the guiding role of foreign trade and foreign investment special funds, make overall use of special funds such as the development of foreign trade and economic cooperation and the high-quality development of commerce in our city, adjust the use of funds, increase the scope and intensity of financial support, focus on stabilizing foreign trade and stabilizing foreign investment in 2022, and give financial support to key foreign investment projects in the industrial chain supply chain. Start the declaration of special funds for the development of regional headquarters of multinational companies in Shanghai in advance in 2022, and strive to complete the allocation by the end of September.

Mike Chang

Partner

mikechang@shanghaiinvet.com