Financial Support and Exchange Rate Stability... China Announces Support Package for Trade Companies

The Chinese government, preparing economic revitalization policies to achieve an annual 5% economic growth, has announced its intention to support domestic foreign trade enterprises.

On the 21st, the Ministry of Commerce of China issued the "Several Policy Measures to Promote Stable Growth of Foreign Trade (Measures)" containing these details.

Issued on the 19th, the Measures include expanding the scale and scope of export credit insurance. The Measures stated, "We will support enterprises in diversifying market development and encourage insurance companies to increase guarantee support for 'Jeonjeongteuksin' (specialized, refined, distinctive, and innovative) enterprises and expand export credit insurance guarantees within the industrial network."

Financial support will also be expanded. The Export-Import Bank of China is tasked with strengthening credit provision in the foreign trade sector and better meeting the financing needs of a wide range of foreign trade enterprises.

The Measures explained, "We will guide banks to optimize overseas deployment to enhance their ability to serve enterprises' international expansion, maintain the yuan exchange rate at a reasonable and balanced level with basic stability, and encourage financial institutions to provide more foreign exchange risk management products to foreign trade enterprises."

Support will also be provided for imports of key equipment and energy resources. Referring to the new "Industrial Restructuring Guidance Catalogue," the "List of Encouraged Imported Technologies and Products" will be revised and distributed, and import policies for products such as recycled copper and aluminum raw materials will be improved to expand imports of recycled resources.

Additionally, to increase personnel exchanges related to business, more mutual visa exemption agreements will be signed with other countries, and China plans to expand the scope of its unilateral visa exemptions.

The Ministry of Commerce of China stated, "All regions, relevant sectors, and units must focus on achieving this year's economic and social development goals and effectively and proactively promote the stable growth of foreign trade."