October 28, 2019

Cabinet calls for efforts to keep foreign trade, investment stable

The State Council, China’s cabinet, recently urged local authorities and related departments to intensify efforts to keep its foreign trade and investment stable.

Greater efforts should be made to keep foreign trade stable and improve the quality of exports and imports, according to a statement released after a State Council executive meeting chaired by Premier Li Keqiang.
More measures will be taken to optimize foreign exchange management and facilitate cross-border trade and investment, the statement said.
The country will further improve policies of export tax rebates, trade financing and credit insurance, and ensure the cross-border e-commerce retail import polices to be fully applied in comprehensive bonded zones step by step, it said.
Meanwhile, efforts have to be made to facilitate the building of a high-standard free trade zone network and lift the level of trade facilitation.
China will expand the comprehensive pilot zones of cross-border e-commerce, promote the pilot project of market procurement transactions and support the development of foreign trade comprehensive service enterprises, the statement said.
Also, more efforts should be made to further expand imports of agricultural products, consumer goods for daily use, equipment, components and parts that meet domestic demand.
The country will build a series of national innovation demonstration zones for promoting imports and ensure the success of the second China International Import Expo to be held next month in Shanghai.
To further expand opening up and keep foreign trade and investment stable, the country should maintain the exchange rate of the Chinese currency renminbi stable at a reasonable and balanced level and keep reasonable forex reserves.
In this regard, the meeting confirmed 12 measures to optimize forex management and promote cross-border trade and investment facilitation, including expanding the pilot project to facilitate forex receipts and payments.
Regulation to optimize business environment
The State Council yesterday made public a regulation on optimizing the business environment in the latest step to unleash and develop productive forces and advance high-quality development.
The regulation, released under a decree signed by Premier Li Keqiang, will become effective from January 1, 2020.
Drawing on past experience and practices, the government seeks to solidify reform measures with regulations to target weak links in China’s business environment and address difficulties facing market entities.
Aligning with advanced international levels, the regulation specifies the principles and directions for fostering a stable, fair, transparent and predictable business environment. It stipulates that the state shall provide equal protection to all market entities and ensure they can make equal use of all factors of production and enjoy support policies in accordance with the law.
The government will protect market entities’ managerial autonomy, property rights and other legitimate rights and interests, and promote the establishment of a unified national platform for safeguarding entities’ rights and interests, according to the regulation.
It also clarifies rules regarding the faster establishment of enterprises, equal market access, solid implementation of tax and fee reduction policies, and easing financing difficulties.