China announces new measures to promote foreign trade

As per the notice, insurance companies are encouraged to increase underwriting support for ‘little giant’ and ‘hidden champion’ firms in their efforts to expand to diversified markets. Here, ‘little giants’ refer to the country’s elite small and medium enterprises (SMEs) that are engaged in manufacturing, specialising in a niche market and boasting cutting-edge technologies. ‘Hidden champion’ refers to highly successful yet lesser-known SMEs that are global leaders in terms of market share in their respective niches.

Under the new measures, banking institutions have been asked to optimise financial services like credit approval, loan disbursement, and repayment for foreign trade enterprises, while ensuring rigorous verification of trade authenticity and effective risk management.

Likewise, financial institutions are encouraged to increase financing support for micro, small and medium enterprises (MSMEs) based on market-oriented and law-based principles, the notice said.

Addressing a press conference, Vice Minister of Commerce Wang Shouwen said that an official investigation has found multiple difficulties confronting enterprises involved in import-export business, from export credit insurance to financing for SMEs, and shipping logistics. The new measures are aimed to address these challenges.

In addition to measures to strenghten financial support for SMES engaged in foreign trade, the notice has announced measures to foster e-commerce and green trade, and enhance services including favourable visa policies for businessmen.

The e-commerce sector, which features customised services, fast delivery and low costs, is highly competitive, Shouwen said at the press conference. In the first three quarters of 2024, China’s e-commerce trade increased by 11.5 per cent, accounting for nearly 6 per cent of total foreign trade.

In the next step, China will help foreign trade companies better align with overseas intelligent logistics platforms and secure overseas orders, and deepen international e-commerce cooperation, such as including e-commerce in new bilateral free trade agreements (FTAs), Wang said.

Regarding green trade, the commerce ministry will roll out a special policy document to create a sound environment, enhance services and training for related businesses, and expand international green cooperation, the minister added.

Speaking about visa policies at the press conference, Tong Xuejun, an official of the Ministry of Foreign Affairs, said China has implemented unilateral visa-free policies for 29 countries, including France and Germany, and has achieved full visa exemption with 25 countries.

The ministry will continue to refine the visa-free entry policy to facilitate cross-border travel, especially for those engaged in business activities, Tong added.

In the first ten months of 2024, the value of China’s international trade in goods increased by 5.2 per cent year-on-year to 36.02 trillion yuan (~$5 trillion). Exports were up 6.7 per cent, while imports rose 3.2 per cent, according to official data.

Fibre2Fashion News Desk (RKS)