MOFCOM Issues Policy Measures to Promote Stable Growth in Foreign Trade
Published 27 November 2024
Yu Du
On 19 November 2024, the Ministry of Commerce of China (MOFCOM) issued a notice on Several Policy Measures to Promote Stable Growth in Foreign Trade. This directive outlines nine specific measures aimed at fostering stability and growth in China’s foreign trade sector. These policies align with the broader goals of consolidating economic recovery and advancing sustainable development amidst complex global trade dynamics.
In the face of ongoing global uncertainties and challenges in international trade, MOFCOM’s initiative seeks to stabilize foreign trade and create a favorable environment for Chinese businesses. The measures address various facets of foreign trade, from financing and insurance to logistics and cross-border commerce. By implementing these policies, the government aims to strengthen China’s position in global trade, support key industries, and enhance the competitiveness of small and medium-sized enterprises (SMEs).
Nine Key Measures
1. Expanding Export Credit Insurance
To encourage market diversification, export credit insurance will be expanded in both scope and coverage. Special attention will be given to supporting innovative enterprises such as “little giants” and “hidden champions” and enhancing supply chain coverage.
2. Enhancing Financial Support for Foreign Trade Enterprises
Banks are urged to increase credit supply in the foreign trade sector and optimize financing services for businesses. Tailored financial solutions will be offered, particularly for SMEs, ensuring effective risk management and trade authenticity verification.
3. Optimizing Cross-Border Trade Settlements
Efforts will be made to improve cross-border settlement services by enhancing the overseas presence of Chinese banks and providing foreign exchange risk management products to foreign trade enterprises. A stable and balanced RMB exchange rate will be maintained.
4. Promoting Cross-Border E-Commerce Development
MOFCOM will continue advancing the construction of smart logistics platforms overseas and support local governments in building cross-border e-commerce service platforms that offer legal, tax, and other business resources.
5. Boosting Exports of Featured Agricultural Products
Support will be intensified for exporting high-value agricultural products. Businesses will receive assistance in addressing unreasonable foreign trade restrictions and navigating complex external environments.
6. Encouraging Imports of Key Equipment and Resources
A revised Catalogue of Encouraged Technologies and Products for Import will guide imports in strategic sectors. Policies on importing recycled resources, such as copper and aluminum, will also be improved.
7. Fostering Green and Border Trade Innovation
Initiatives include promoting carbon services for foreign trade companies, advancing processing of border trade imports, and introducing innovative bonded maintenance and remanufacturing projects in free trade zones.
8. Facilitating Cross-Border Business Travel
The government will enhance visa facilitation, extend transit visa exemption policies, and streamline approvals for urgent business visits, encouraging smoother business exchanges between China and key trade partners.
9. Strengthening Support for Logistics and Workforce Needs
Strategic cooperation between foreign trade and shipping companies will be promoted. Meanwhile, measures like unemployment insurance rebates and startup loans will be implemented to stabilize employment and reduce operational costs for foreign trade enterprises.
[Comment]
These measures reflect China’s proactive approach to maintaining foreign trade momentum in the face of global headwinds. The policies are expected to stabilize exports and imports, support key industries, and enable SMEs to expand their international footprint. Notably, initiatives like green trade innovation and cross-border e-commerce reflect a forward-looking vision aligned with global trends in sustainability and digital trade. However, the policy document serves as a strategic guideline rather than a detailed implementation plan. It is anticipated that more concrete measures will follow, ensuring these policies are effectively executed to deliver tangible benefits.
In the face of ongoing global uncertainties and challenges in international trade, MOFCOM’s initiative seeks to stabilize foreign trade and create a favorable environment for Chinese businesses. The measures address various facets of foreign trade, from financing and insurance to logistics and cross-border commerce. By implementing these policies, the government aims to strengthen China’s position in global trade, support key industries, and enhance the competitiveness of small and medium-sized enterprises (SMEs).
Nine Key Measures
1. Expanding Export Credit Insurance
To encourage market diversification, export credit insurance will be expanded in both scope and coverage. Special attention will be given to supporting innovative enterprises such as “little giants” and “hidden champions” and enhancing supply chain coverage.
2. Enhancing Financial Support for Foreign Trade Enterprises
Banks are urged to increase credit supply in the foreign trade sector and optimize financing services for businesses. Tailored financial solutions will be offered, particularly for SMEs, ensuring effective risk management and trade authenticity verification.
3. Optimizing Cross-Border Trade Settlements
Efforts will be made to improve cross-border settlement services by enhancing the overseas presence of Chinese banks and providing foreign exchange risk management products to foreign trade enterprises. A stable and balanced RMB exchange rate will be maintained.
4. Promoting Cross-Border E-Commerce Development
MOFCOM will continue advancing the construction of smart logistics platforms overseas and support local governments in building cross-border e-commerce service platforms that offer legal, tax, and other business resources.
5. Boosting Exports of Featured Agricultural Products
Support will be intensified for exporting high-value agricultural products. Businesses will receive assistance in addressing unreasonable foreign trade restrictions and navigating complex external environments.
6. Encouraging Imports of Key Equipment and Resources
A revised Catalogue of Encouraged Technologies and Products for Import will guide imports in strategic sectors. Policies on importing recycled resources, such as copper and aluminum, will also be improved.
7. Fostering Green and Border Trade Innovation
Initiatives include promoting carbon services for foreign trade companies, advancing processing of border trade imports, and introducing innovative bonded maintenance and remanufacturing projects in free trade zones.
8. Facilitating Cross-Border Business Travel
The government will enhance visa facilitation, extend transit visa exemption policies, and streamline approvals for urgent business visits, encouraging smoother business exchanges between China and key trade partners.
9. Strengthening Support for Logistics and Workforce Needs
Strategic cooperation between foreign trade and shipping companies will be promoted. Meanwhile, measures like unemployment insurance rebates and startup loans will be implemented to stabilize employment and reduce operational costs for foreign trade enterprises.
[Comment]
These measures reflect China’s proactive approach to maintaining foreign trade momentum in the face of global headwinds. The policies are expected to stabilize exports and imports, support key industries, and enable SMEs to expand their international footprint. Notably, initiatives like green trade innovation and cross-border e-commerce reflect a forward-looking vision aligned with global trends in sustainability and digital trade. However, the policy document serves as a strategic guideline rather than a detailed implementation plan. It is anticipated that more concrete measures will follow, ensuring these policies are effectively executed to deliver tangible benefits.