China strengthens political support for foreign trade development

This panoramic aerial photo taken on January 10, 2023 shows a view of the Lujiazui area in the China (Shanghai) Pilot Free Trade Zone in Shanghai, east China. (Photo/Xinhua)

China has unveiled a series of policy measures aimed at promoting the steady growth of foreign trade and consolidating economic recovery, according to a statement released by the Ministry of Commerce on Thursday.

Insurance companies are encouraged to increase their underwriting support for “small giant” and “hidden champion” companies in their efforts to expand into diversified markets, according to the notice.

“Little giants” refer to the new elites of Chinese small and medium-sized enterprises (SMEs) engaged in the manufacturing sector, specializing in a niche market and benefiting from cutting-edge technologies. “Hidden champions” refer to high-performing but lesser-known SMEs that are global leaders in terms of market share in their respective niches.

Banking institutions should continually optimize financial services for foreign trade enterprises in areas such as credit approval, loan disbursement and repayment, while ensuring rigorous verification of trade authenticity and efficient management. risks.

Financial institutions are encouraged to increase their financial support to micro, small and medium-sized enterprises based on market-oriented and law-based principles, the note said.

Efforts should be made to optimize the settlement of cross-border trade, promote the development of cross-border e-commerce, increase exports of agricultural products, and support imports of key equipment and energy resources.

The country will also boost the innovative development of green trade and border trade, attract and facilitate cross-border business travel, improve maritime transportation support for foreign trade, and strengthen employment services for foreign trade enterprises, according to the ‘notice.

The latest policy measures come as part of China’s continued efforts to promote the growth of foreign trade, cultivate new international competitive advantages and achieve mutual benefits with other countries.

The country has built 22 pilot free trade zones (FTZs) covering coastal, inland and border areas. These areas contribute about 20 percent of the country’s total foreign investment volume and import and export volume. Foreign trade in free trade zones increased by 11.99% year-on-year in the first three quarters of 2024.

In the first ten months, China’s foreign trade increased by 5.2 percent from last year to 36.02 trillion yuan (about $5 trillion), with exports up by 6.7% and imports of 3.2%, according to official data.