China cabinet released a plan to stabilize its vital trade sector, including boosting auto exports and easing visas for overseas entrepreneurs, as subdued global demand threatens its export outlook.
The move came after Chinese officials repeatedly warned of a dire and complicated situation for foreign trade development as exporters reported a lack of orders, putting pressure on politicians to support the sector, which is key to economic growth and employs around 180 million people.
As an outbound shipment of electric vehicles fueled an unexpected surge in exports in March, the State Council (Cabinet) said, Chinese banks and their overseas branches were urged to offer financial support to automakers to help them expand overseas.
China facilitate the issuance of visas for overseas businessmen
China will further facilitate the issuance of visas for overseas businessmen while increasing inbound and outbound flights, according to the statement. In a market survey, the State Council asked Chinese embassies and consulates to increase support for small business firms and called on major export-oriented provinces to play a key role in stabilizing the sector.
“The Ministry of Commerce, together with relevant departments, should closely monitor the operation of foreign trade, analyze changes in the situation” and “adjust and improve relevant policies” in an effort to “help companies stabilize orders and explore markets,” the statement said.
China will also respond appropriately to unreasonable restrictions on foreign trade and strengthen training and guidance for local governments and affected firms, the statement added.
Financial institutions are encouraged to expand the scope of yuan settlement in cross-border business transactions to better meet firms’ demand for currency risk hedging.
