BEIJING, March 11 -- China will work to shorten the negative list on foreign investment and encourage financial institutions to increase foreign trade loans to cope with the impact of the epidemic and keep steady progress in foreign trade and investment. Sound preparations will be made for the China Import and Export Fair (Canton Fair) this spring. These were decided at the State Council's executive meeting on Tuesday presided over by Premier Li Keqiang.
"Keeping foreign trade and foreign investment stable is vitally important as the Chinese economy has been deeply integrated into the world economy. Given the severe impact of the epidemic on foreign trade, we must implement targeted policies to arrest the slide in foreign trade and foreign investment, to forestall damage to the wider economy," Li said.
It was decided at the Tuesday meeting that all export tax rebates must be made in full without delay except for energy intensive, polluting, and resource products.
Financial institutions will be encouraged to increase foreign trade loans, fully deliver the policy of loan deferment in both principal and interest, and consider further rolling over, through consultations, the loans made to smaller firms deeply affected by the outbreak yet hold promising prospects.
Commercial insurance companies will be supported in offering short-term export credit insurance services and lowering premium rates.
The meeting called for sound preparation for the China Import and Export Fair this spring to bolster cooperation on foreign trade.
Efforts must be intensified to shorten the negative list on foreign investment and expand the catalog of industries where foreign investment is encouraged, so that foreign investors in more sectors get to benefit from the tax and other incentives.
Recent tax and fee relief policies designed to help companies in difficulty should equally apply to both domestic and foreign-invested enterprises.
"All companies, regardless of size or type of ownership, should get to benefit from the recent policies designed to ease their difficulties. We must swiftly work out a further shortened negative list on the access of foreign investment to more clearly demonstrate our firm resolve on opening-up," Li said.
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