China’s cabinet issued a plan on Tuesday to stabilise its vital trade sector, urging support for auto exports and quicker visas for overseas businessmen, as subdued global demand threatens its exports outlook.
The move came after Chinese officials repeatedly warned of a severe and complicated situation for foreign trade as exporters reported a lack of orders.
Pressure is piling on Chinese policymakers to shore up a sector that is key to economic growth and provides jobs to around 180 million people.
With outbound shipments of electric vehicles spurring an unexpected surge in exports in March, the State Council (cabinet) said Chinese banks and their overseas branches were encouraged to offer financial support, to help car firms expand on foreign turf.
Also on AF: Micron Probe Fuels Fears of US Businesses in China
The world’s second-largest economy will also boost the issuing of visas for overseas business people, while increasing inbound and outbound flights, the statement said.
The State Council has also asked Chinese embassies and consulates to step up support for small trade firms and urged major export-oriented provinces to play a key role in stabilising the sector.
“The commerce ministry together with relevant departments should closely follow the operation of foreign trade, analyse the changes of situation” and “adjust and improve relevant policies” in a bid to “help firms stabilise orders and explore markets,” it said.
China will also properly respond to unreasonable foreign trade restrictions and strengthen training and guidance to local governments and firms affected, the statement added.
Financial institutions, it said, are encouraged to expand the scale of yuan settlement in cross-border trade transactions to better meet the demand from firms to hedge currency risks.
- Reuters, with additional editing by Vishakha Saxena
China Exports Surge Stems From Covid Disruptions: Analysts
China Envoys ‘Grab’ Billions in Unprecedented Push for Deals
Consumer and Factory Prices Drop in China as Demand Sinks
Vietnam, India Ramp up US Exports as China Share Falls – Caixin