China Introduces Foreign Trade Stabilization Methods

Source: The Central People’s Government, ChinaScope Financial (Data)

+       Yesterday, the State Council introduced a series of measures to stabilize foreign trade growth.

+       The government will accelerate the process of export tax rebates, and ensure that payments will be given accurately and timely.

+       China will help enterprises expand financing size and reduce financing costs. In addition, commercial banks in China are encouraged to extend trade financing to micro- and small-sized enterprises (MSEs) as well as issue more loans to qualified exporters.

+       In addition, the government is also encouraging the expansion of export credit insurance. Insurance companies are now required to increase short-term insurance services to MSEs to help them gain better traction in overseas markets.

+       To facilitate smoother trade operations, the efficiency of customs and clearance will be improved, administrative procedures will be optimized, and related costs will be cut starting from 2013.

+       Furthermore, China will aggressively expand imports, and encourage enterprises to venture into emerging markets such as Africa, Latin America, Southeast Asia, and Central and Eastern Europe.

As fettering global demand is weighing increasingly heavily on China, policy makers are returning to the tried and true stimulus tool of export tax rebates.

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