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Business / Policy Watch

Govt to channel financing support to exporters

By Hu Yongqi (China Daily) Updated: 2016-04-21 02:13

Govt to channel financing support to exporters

A stevedore works at Qingdao port in Shandong province, July 1, 2015. [Photo/IC]

The country will provide more financing support and other favorable policies to export enterprises to boost foreign trade amid sluggish global demand.

Financial institutions were encouraged to provide loans to export enterprises that have new orders and earn profits, according to an executive meeting of the State Council on Wednesday presided over by Premier Li Keqiang.

More export-credit insurance financing will be provided to exporters, and short-term export credit insurance will be increased for them, a statement released after the meeting said. Meanwhile, export tax rebate rates will be raised for some machinery and electronic products.

For the first time during the past 10 years, the 2016 Government Work Report, delivered last month by Li, did not set a growth target for foreign trade, indicating that the sector has undergone difficulties.

China's foreign trade increased by 8.6 percent year-on-year in March, and exports rose by 18.7 percent to end eight months of decline, far exceeding market expectations, according to the General Administration of Customs.

Meanwhile, new business models will be encouraged to boost foreign trade. More pilot projects will be conducted to expand cross-border e-commerce, and the government will endorse enterprises to provide comprehensive foreign trade services such as establishing overseas warehouses. In addition, the country will cultivate independent brands for foreign trade.

Last month, imports decreased by 1.7 percent year-on-year, so the meeting decided to carry out a proactive import policy with a focus on advanced equipment and technologies.

Wang Zhuilin, a professor of international business at Wuhan University in Hubei province, said the export measures are intended to ensure a capital chain for quality export enterprises and to ease their burdens.

"In this way, profitable exporters can lower their costs and save cash for innovation and technological upgrading, which will help increase their competitiveness in the global market," he added.

huyongqi@chinadaily.com.cn

 
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