China Strengthens Policy Support for Foreign Trade Development

A report from Xinhua on Nov. 22nd, 2024:

China has unveiled a slew of policy measures to promote the steady growth of foreign trade and consolidate economic recovery, according to a notice released by the Ministry of Commerce on Thursday.

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

“Little giants” refer to the novel elites of China’s small and medium-sized enterprises (SMEs) that are engaged in manufacturing, specializing in a niche market and boasting cutting-edge technologies. “Hidden champions” refer to highly successful yet lesser-known SMEs that are global leaders in terms of market share in their respective niches.

Banking institutions should continuously 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 effective risk management.

Financial institutions are encouraged to increase financing support for micro, small and medium-sized companies based on market-oriented and law-based principles, said the notice.

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

The country will also drive innovative development in green trade and border trade, attract and facilitate cross-border business travel, enhance maritime transport support for foreign trade, and strengthen employment services for foreign trade enterprises, according to the notice.

The latest policy measures are part of China’s ongoing efforts to promote foreign trade growth, 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 zones contribute about 20 percent of the country’s total foreign investment and import-export volume. Foreign trade in the FTZs expanded by 11.99 percent year on year in the first three quarters of 2024.

In the first ten months, China’s foreign goods trade rose 5.2 percent from a year ago to 36.02 trillion yuan (about 5 trillion U.S. dollars), with exports up 6.7 percent and imports up 3.2 percent, official data showed.