Regular State Council policy briefing

On April 23, 2023, The State Council Information Office held a regular briefing on The State Council's policy to promote a steady scale and a sound structure of foreign trade and answered questions from journalists. Let's see --

Q1

Q: What are the main contents of the policy measures to promote the steady scale and optimal structure of foreign trade?

A: On April 7, the executive meeting of The State Council studied the policy measures to promote the steady scale and optimal structure of foreign trade. This policy is divided into two major aspects, one is to stabilize the scale, and the other is to optimize the structure.

In terms of stabilizing the scale, there are three aspects.

One is to work hard to create trade opportunities. Including extensive resumption of 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 have asked our diplomatic missions abroad to increase their support for foreign trade enterprises. We will also issue specific measures on country-specific trade guidelines, which are aimed at increasing trade opportunities for enterprises.

Second, we will stabilize trade in key products. It includes helping automobile enterprises to establish and improve the international marketing service system, ensuring the reasonable capital needs of large complete sets of equipment projects, and accelerating the revision of the catalogue of encouraged imports of technologies and products.

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 small, medium and micro enterprises for foreign trade financing, and accelerating the expansion of industrial chain underwriting.

In terms of optimal structure, there are mainly two aspects.

First, we need to improve trade patterns. We have proposed to guide the gradual transfer of processing trade to the central and western regions and Northeast China. We will also revise the measures for the management of cross-border trade, and support the Guangdong-Hong Kong-Macao Greater Bay Area in developing a digital pilot zone for global trade. We also guide relevant chamber of commerce associations to adapt to green environmental protection requirements, formulate some green and low-carbon standards for 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 have proposed to give full play to the early warning system and legal service mechanism, further promote the "single window", further facilitate the processing of export tax rebates, improve the efficiency of port clearance, and implement the free trade agreements already in force with high quality. We will also publish guidelines on 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 begun. In the first quarter, the Ministry of Commerce recorded or approved 186 exhibitions of all kinds, and we must help enterprises to supply and collect.

Second, facilitate business exchanges.

At present, the recovery rate of China's foreign international flights has reached nearly 30% compared with that before the epidemic, 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 our 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, and the virtual visa card will be allowed for entry on May 1. At the same time, relevant domestic departments are further studying and optimizing remote detection measures to provide convenience for business personnel to visit China.

Third, we need to deepen trade innovation. In particular, e-commerce is worth mentioning.

The Ministry of Commerce is ready to solidly 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-specific trade guidelines, and for key markets, each country will develop a trade promotion guideline. We will also make good use of the trade facilitation Working Group mechanism established with many countries under the Belt and Road Initiative to help resolve the difficulties encountered by Chinese enterprises in exploring markets in countries along the Belt and Road, and increase opportunities for them.

Q3

Q: How does finance support the steady development of foreign trade?

A: First of all, the measures taken are to reduce the financing cost of the real economy. In 2022, the weighted average interest rate of corporate loans in China fell by 34 basis points year-on-year to only 4.17%, which is a relatively low level in history.

Second, guide financial institutions to increase support for small, micro and private foreign trade enterprises. By the end of 2022, the balance of small and micro loans of Pratt & Whitney increased by 24% 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. For the whole of last year, the enterprise hedging ratio increased by 2.4 percentage points from the previous year, reaching 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 and the level of cross-border trade facilitation has been improved. For the whole of last year, the cross-border RMB settlement scale of trade in goods increased by 37% year-on-year, accounting for 19%, an increase of 2.2 percentage points over 2021.

Q4

Q: What new measures will be taken to promote the development of cross-border e-commerce?

A: First, develop "cross-border e-commerce + industrial belt". Relying on our country's 165 cross-border e-commerce comprehensive pilot zones, combined with the industrial endowments and regional advantages of various places, to promote more local characteristics of products to better enter the international market, that is, we do a good job in consumer-facing B2C business, but also vigorously support our traditional foreign trade enterprises, through cross-border e-commerce to expand sales channels, cultivate brands, expand trade scale. In particular, we will expand the scale of B2B trade and service capabilities 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, the cross-border e-commerce enterprises served by these platforms have exceeded 60,000, which is about 60% of the cross-border e-commerce enterprises in the country.

Third, improve assessment and evaluation, 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, guide the comprehensive pilot area to optimize the development environment, improve the level of innovation, and accelerate the cultivation of a number of backbone enterprises.

Fourth, guide compliance operations to prevent and control risks. Actively cooperate with the State Intellectual Property Office to accelerate the introduction of cross-border e-commerce intellectual property protection guidelines to help cross-border e-commerce enterprises understand the IP situation in the target market and do their homework in advance.

Q5

Q: What measures will be taken in the next step to promote the stability and development of processing trade?

A: First, we will promote the gradient transfer of processing trade.

We will do a good job in cultivating processing trade, strengthen policy support, and improve the docking mechanism. In the next step, we will continue to support the transfer of processing trade to the central and western regions and the Northeast 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, it is necessary to continue to play a good role as the main force of large 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 key processing trade enterprises, in particular in terms of energy use, employment and credit support, so as to provide them with protection.

Fourth, in view of the current practical difficulties encountered in processing trade, the Ministry of Commerce will study and introduce specific policies in due course.

Q6

Q: What measures will be taken in the next step to make better use of the positive role of imports in maintaining a stable scale and excellent structure of foreign trade?

A: First, we should expand the import market.

This year, we have implemented provisional import tariff rates on 1,020 items. The so-called provisional import tariff rate is lower than the tariff rate we promised to the WTO. The average import tariff level of China is about 7%, while the average import tariff level of developing countries according to the WTO is about 10%. This demonstrates our willingness to expand access to our import markets. We have signed 19 free trade agreements with 26 countries and regions. Signing a free trade agreement means that tariffs on most of our imports will be reduced to zero, which will also help expand imports. We will also play a positive role in cross-border e-commerce retail imports, ensure the stability of imports of bulk products, and increase imports of energy and resource products, agricultural products, and consumer goods that China needs domestically.

More importantly, we support the import of advanced technology important equipment and key 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 imported exhibits sold during the China Import and Export Commodity Trade Exhibition period this year from import duties, import value-added tax and consumption tax, which will help them bring exhibits to China for exhibition and sales. Now there are 13 exhibitions in our country that will enjoy this policy, which is conducive to expanding imports.

Third, we will foster innovation demonstration zones for promoting import trade.

The country has set up 43 import demonstration zones, 29 of which were set up last year. For these import demonstration zones, various regions have carried out some policy innovations, such as expanding the import of consumer goods, creating a commodity trading center, and promoting the integration of imported products and domestic consumption with domestic downstream enterprises.

Fourth, we will improve import facilitation across the board.

The Ministry of Commerce will work with the Customs to promote the expansion of the "single window" service function, promote the deepening of 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.

Source: Chinese government website