China will work to shorten the negative list on foreign investment and encourage financial institutions to increase foreign trade loans to cope with the impact of the epidemic and keep steady progress in foreign trade and investment. Sound preparations will be made for the China Import and Export Fair (Canton Fair) this spring. These were decided at the State Council’s executive meeting presided over by Premier Li Keqiang on March 10.
The Chinese government attaches great importance to foreign trade and investment. General Secretary Xi Jinping underlined the importance of keeping foreign trade and investment stable, and boosting the confidence of foreign businesses in making long-term investments in China. Premier Li Keqiang issued important instructions on the need to fully leverage the coordination mechanism on foreign trade and investment, and introduce effective response measures in a timely manner.
According to figures released by China Customs on March 7, the country’s import and export of goods totaled 4.12 trillion yuan in the first two months of this year, down by 9.6 percent year-on-year.
"Keeping foreign trade and foreign investment stable is vitally important as the Chinese economy has been deeply integrated into the world economy. Given the severe impact of the epidemic on foreign trade, we must implement targeted policies to arrest the slide in foreign trade and foreign investment, to forestall damage to the wider economy," Premier Li said.
It was decided at the meeting that all export tax rebates must be made in full without delay except for energy intensive, polluting, and resource products.
Financial institutions will be encouraged to increase foreign trade loans, fully deliver the policy of loan deferment in both principal and interest, and consider further rolling over, through consultations, the loans made to smaller firms deeply affected by the outbreak yet holding promising prospects.
Commercial insurance companies will be supported in offering short-term export credit insurance services and lowering premium rates.
The meeting called for making sound preparations for the China Import and Export Fair (Canton Fair) this spring to bolster cooperation on foreign trade.
Efforts must be intensified to shorten the negative list on foreign investment and expand the catalog of industries where foreign investment is encouraged, so that foreign investors in more sectors get to benefit from the tax and other incentives.
Recent tax and fee relief policies designed to help companies in difficulty should equally apply to both domestic and foreign-invested enterprises.
"All companies, regardless of size or type of ownership, should get to benefit from the recent policies designed to ease their difficulties. We must swiftly work out a further shortened negative list on the access of foreign investment to more clearly demonstrate our firm resolve on opening-up," Premier Li said.
