The State Council Information Office held a regular State Council policy briefing on 23 April 2023 to brief journalists on maintaining a steady scale and sound structure of foreign trade and answer questions. Let’s see –
Q1
Q: What are the main policy measures to maintain a steady scale and sound structure of foreign trade?
A:
On April 7, the executive meeting of The State Council studied policies and measures to promote steady scale and sound structure of foreign trade. This policy is divided into two aspects: first, to stabilize the scale, and second, to optimize the structure.
In terms of stabilizing the scale, there are three aspects.
One is to try to create trade opportunities. These include extensively resuming offline exhibitions in China, improving the efficiency of APEC business travel card processing, and promoting the steady and orderly resumption of international passenger flights. In addition, we will also ask our diplomatic missions overseas to increase support for foreign trade companies. We will also issue specific measures on country-specific trade guidelines, which are aimed at increasing trade opportunities for companies.
Second, we will stabilize trade in key products. It will help automobile enterprises establish and improve international marketing service system, ensure reasonable capital demand for large complete equipment projects, and accelerate the revision of the list of technologies and products encouraged to import.
Third, we will stabilize foreign trade enterprises. A series of specific measures include studying the establishment of the second phase of the service Trade Innovation and Development Guidance Fund, encouraging banks and insurance institutions to expand cooperation in insurance policy financing and credit enhancement, actively meeting the needs of micro, small and medium-sized enterprises for foreign trade financing, and accelerating the expansion of insurance underwriting in the industrial chain.
In the aspect of optimal structure, there are mainly two aspects.
First, we need to improve trade patterns. We have proposed to guide the gradient transfer of processing trade to the central, western and northeastern regions. We will also revise the measures for the management of cross-border trade, and support the development of the Guangdong-Hong Kong-Macao Greater Bay Area as a digital navigation area for global trade. We also guide relevant chambers of commerce and associations to adapt to green environmental protection requirements, formulate green and low-carbon standards for some foreign trade products, and guide enterprises to make good use of cross-border e-commerce retail export related tax policies.
Second, we will improve the environment for foreign trade development. We will make good use of the early warning system and the legal service mechanism, advance the development of the “single window”, further facilitate the processing of export tax rebates, improve the efficiency of customs clearance at ports, and implement the free trade agreements already in force with high quality. We will also publish guidelines for the application of key industries.
Q2
Q: How to help enterprises stabilize orders and expand the market?
A:
First, we should hold the Canton Fair and a series of other exhibitions.
The 133rd Canton Fair offline exhibition is underway, and now the second phase has started. In the first quarter of this year, the Ministry of Commerce put on record or approved 186 exhibitions of various kinds. We need to help enterprises to connect with each other.
Second, facilitate business contacts.
At present, the recovery rate of our international flights to foreign countries has reached nearly 30 percent compared to the pre-pandemic level, and we are still working hard to make full use of these flights.
The Foreign Ministry and other relevant departments are pushing relevant countries to facilitate visa application for Chinese companies, and we also facilitate visa application for foreign companies in China.
In particular, we support the APEC Business Travel Card as an alternative to visas. The virtual visa card will be allowed on 1 May. At the same time, relevant domestic departments are further studying and optimizing remote detection measures to facilitate business visits to China.
Third, we need to deepen trade innovation. In particular, e-commerce is worth mentioning.
The Ministry of Commerce is ready to steadily promote the construction of comprehensive pilot zones for cross-border e-commerce, and carry out brand training, rules and standards construction, and high-quality development of overseas warehouses. We are also planning to hold an on-site meeting in the comprehensive pilot zone of cross-border e-commerce to promote some good practices in cross-border e-commerce.
Fourth, we will support enterprises in exploring diversified markets.
The Ministry of Commerce will issue country trade guidelines, and each country will formulate a trade promotion guide for key markets. We will also make good use of the Working Group mechanism on unimpeded trade under the Belt and Road Initiative established with many countries to help resolve the difficulties Chinese companies face in exploring markets in countries along the Belt and Road and increase opportunities for them.
Q3
Q: How can finance support the steady development of foreign trade?
A:
First, we have taken measures to reduce the financing cost of the real economy. In 2022, the weighted average interest rate on corporate loans dropped 34 basis points year on year to 4.17 percent, a relatively low level in history.
Second, we will guide financial institutions to increase support for small, micro and private foreign trade enterprises. By the end of 2022, the outstanding small and micro loans of Pratt & Whitney increased 24 percent year on year to reach 24 trillion yuan.
Third, it guides financial institutions to provide exchange rate risk management services for foreign trade enterprises, and relieves foreign exchange transaction fees related to bank services for micro, small and medium-sized enterprises. In the whole of last year, the enterprise hedging ratio increased by 2.4 percentage points from the previous year to 24%, and the ability of small, medium and micro enterprises to avoid exchange rate fluctuations was further improved.
Fourth, the RMB settlement environment for cross-border trade has been continuously optimized to improve cross-border trade facilitation. For the whole of last year, the cross-border RMB settlement scale of trade in goods increased by 37 percent year-on-year, accounting for 19 percent of the total, 2.2 percentage points higher than that in 2021.
Q4
Q: What new measures will be taken to promote the development of cross-border e-commerce?
A:
First, we need to develop a cross-border e-commerce + industrial belt. Relying on the 165 cross-border e-commerce pilot zones in our country and combining the industrial endowments and regional advantages of different regions, we will promote more local specialty products to enter the international market better. That is to say, while doing a good job in B2C business facing consumers, we will also vigorously support our traditional foreign trade enterprises to expand sales channels, cultivate brands and expand trade scale through cross-border e-commerce. In particular, we will expand the B2B trade scale and service capacity for enterprises.
Second, we need to build a comprehensive online service platform. In recent years, all pilot areas are actively promoting the construction of online integrated service platforms. At present, these platforms have served more than 60,000 cross-border e-commerce enterprises, about 60 percent of the country’s cross-border e-commerce enterprises.
Third, improve assessment and evaluation to promote excellence and foster strength. We will continue to combine the new characteristics of cross-border e-commerce development, optimize and adjust the evaluation indicators. Through the evaluation, we will guide the comprehensive pilot areas to optimize the development environment, improve the level of innovation, and accelerate the cultivation of a number of key enterprises.
Fourth, to guide compliance management, prevention and control risks. We will actively cooperate with the State Intellectual Property Office to accelerate the issuance of IPR protection guidelines for cross-border e-commerce, and help cross-border e-commerce enterprises to understand the IPR situation in target markets and do their homework in advance.
Q5
Q: What will be the next steps to promote stability and development of processing trade?
A:
First, we will promote the gradient transfer of processing trade.
We will do a good job in fostering processing trade, strengthen policy support, and improve the docking mechanism. Going forward, we will continue to support the transfer of processing trade to the central, western and northeastern regions on the basis of what we have already done. We will promote the transfer, transformation and upgrading of processing trade.
Second, we will promote the development of new processing trade forms such as bonded maintenance.
Third, in order to support processing trade, we should continue to give full play to the major role of processing trade provinces.
We will continue to give full play to the role of major processing trade provinces, encourage and support local governments to further strengthen services for these major processing trade enterprises, in particular in terms of energy use, labor and credit support, and provide them with guarantees.
Fourthly, in view of the current practical difficulties encountered in processing trade, the Ministry of Commerce will timely study and issue specific policies.
Q6
Q: What measures will be taken in the next step to better leverage the positive role of imports in maintaining a steady scale and sound structure of foreign trade?
A:
First, we need to expand the import market.
This year, we have imposed provisional import tariffs on 1,020 items of goods. The so-called provisional import tariffs are lower than the tariffs we promised to the WTO. Currently, the average tariff level of China’s imports is around 7%, while the average tariff level of developing countries according to WTO statistics is around 10%. This shows our willingness to expand access to our import markets. We have signed 19 free trade agreements with 26 countries and regions. A free trade agreement would mean that tariffs on most of our imports would be reduced to zero, which would also help expand imports. We will also play a positive role in cross-border e-commerce retail imports to ensure stable imports of bulk products and increase imports of energy and resource products, agricultural products and consumer goods that China needs.
More importantly, we support the import of advanced technology, important equipment and key parts and components to promote the adjustment and optimization of the domestic industrial structure.
Second, give play to the role of import exhibition platform.
On April 15, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation issued a policy to exempt import duties, value-added tax and consumption tax on imported exhibits sold during the exhibition period of China Import and Export Commodity Trade this year, which will help them bring exhibits to China for exhibition and sale. Now there are 13 exhibitions in our country enjoying this policy, which is conducive to expanding imports.
Third, we will foster import trade innovation demonstration zones.
The country has set up 43 import demonstration zones, 29 of which were set up last year. For these import demonstration zones, policy innovations have been carried out in each region, such as expanding imports of consumer goods, creating commodity trading centers, and promoting the integration of imported products and domestic consumption with domestic downstream enterprises.
Fourth, we will improve import facilitation across the board.
Together with the Customs, the Ministry of Commerce will promote the expansion of “single window” service function, promote deeper and more solid trade facilitation, promote mutual learning among import ports, further improve the efficiency of the flow of imported goods, reduce the burden on enterprises, and make China’s industrial chain and supply chain more reliable and efficient.
Post time: Apr-24-2023