China unveils new measures to keep foreign trade, investment stable

China will take new measures to keep foreign trade and investment stable, and help firms tide over difficulties amid the coronavirus outbreak.

All export tax rebates except for energy-intensive, polluting and resource products must be made in full without delay, a State Council executive meeting chaired by Premier Li Keqiang on Tuesday agreed.

The country will encourage financial institutions to increase foreign trade loans, and fully deliver the policy of loan deferment in principal and interest for promising smaller firms that are deeply affected by the outbreak. Commercial insurance companies will be supported in offering short-term export credit insurance services and lowering premium rates.

The meeting called for sound preparations for the China Import and Export Fair, or Canton Fair, this spring to bolster cooperation on foreign trade.

Efforts should be intensified to shorten the negative list on foreign investment and expand the catalog of industries in which foreign investment is encouraged so that foreign investors in more sectors can receive benefits in terms of tax and other incentives.

Li also urged that recent tax and fee cut policies designed to help companies tide over difficulties should be equally applied to both domestic and foreign-invested enterprises.

The meeting required precise epidemic prevention and control measures in line with the situation of each region, amid a faster pace of resuming work and production across the complete industrial chain.

Efforts should be stepped up to strengthen international cooperation with measures such as increasing international freight flights, in a bid to maintain the smooth flow of the global supply chain, the meeting noted.

Financial institutions will be guided to provide more working capital loans and reasonable lines of credit to core enterprises in the industrial chain.

The meeting required further policies and loans to better ensure the capital needs of anti-epidemic supplies, spring farming, manufacturing of global supply chain products, as well as labor-intensive sectors.

Amid efforts to mitigate the impact of the epidemic, more measures for deepening reform and opening-up will be studied to stimulate market vitality and boost domestic demand.

The meeting also called for efforts to provide more opportunities for entrepreneurship and the flexible labor market to further stabilize employment.