What impact will the global spread of the epidemic have on China’s exports?

What impact will the global spread of the epidemic have on China's exports?

On April 10, the State Council Office held a press conference. Assistant Minister of Commerce Ren Hongbin and Director of the Foreign Trade Department Li Xingqian introduced measures to stabilize foreign trade and answered questions from reporters.

Foreign trade companies are generally faced with many problems such as cancellation or extension of orders in hand

Ren Hongbin said that this year, affected by the new coronary pneumonia epidemic, the development of foreign trade has faced severe challenges that have not been seen in many years. According to customs statistics, from January to February, China’s imports, exports, and imports fell by 9.6%, 15.9%, and 2.4% in RMB. At present, the domestic epidemic prevention and control situation continues to improve, and foreign trade enterprises resume work and production in an orderly manner. However, the spread of the epidemic in the world has accelerated and it has had a huge impact on the global economy and trade. Judging from the recent surveys conducted by the Ministry of Commerce on key provinces and cities, various import and export chambers of commerce and key enterprises, foreign trade companies are generally faced with many problems such as cancellation or extension of orders in hand, difficulty in signing new orders, and poor logistics and transportation.

Facing the severe foreign trade situation, the State Council promptly issued policies and measures to stabilize foreign trade. On March 10, the executive meeting of the State Council reviewed and adopted measures to improve export tax rebates, increase foreign trade credit placement, and increase export credit insurance support. On April 7, the executive meeting of the State Council once again launched the establishment of a cross-border e-commerce comprehensive test zone to support the development of processing trade, a series of foreign trade stabilization policies such as the online Canton Fair, and a policy of “combined boxing” to try to stabilize the basic foreign trade foreign trade.

Ministry of Commerce: Expand the pilot program for selective taxation of domestic sales and reduce the domestic sales cost of enterprises

Ren Hongbin said that the current processing trade enterprises are facing many difficulties, we adhere to the problem-oriented, strengthen the situation research and judgment, together with the relevant departments from four aspects to put forward policy measures to stabilize the current development of processing trade:

First, reduce the domestic sales cost of enterprises. When the bonded materials or finished products of processing trade enter the domestic market for sale, the import link tax will be levied in accordance with the regulations, but tax deferred interest will be temporarily exempted until the end of the year.

The second is to expand the pilot program for selective taxation of domestic sales. We will expand the trial of processing trade enterprises to choose to pay tariffs on imported materials or finished products to all comprehensive bonded areas to reduce actual taxes.

The third is to optimize the structure of processing trade. Accelerate the revision of the catalogue of industries that encourage foreign investment, promote the high-quality development of the manufacturing industry, and enhance the ability of the central and western regions and the northeast region to undertake industrial transfer.

Fourth, expand the scope of commodity access. Some products that are in line with industrial development policies and are no longer classified as “two highs and one capital” will be excluded from the category of prohibited processing trade.

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