SCIO briefing about policies and measures on stabilizing employment, ensuring stable growth and promoting high-quality development

Phoenix TV:

We have noticed that after the United States imposed high additional tariffs on China, many foreign trade enterprises have encountered great difficulties in exporting to the United States. May I ask what specific measures the Ministry of Commerce will take next to help these enterprises? Thank you.

Sheng Qiuping:

Thank you for your question. Since the beginning of this year, the development of China's foreign trade has been facing increasingly significant challenges, especially with the United States wantonly imposing unilateral tariffs and undermining Sino-US economic and trade cooperation. However, our vast number of foreign trade enterprises remain confident about their development prospects, and various policies to stabilize foreign trade have continued to be effective. As Mr. Zhao mentioned earlier, our foreign trade exports grew by 6.9% in the first quarter. According to the monitoring and prediction of big data business platforms, the overall exports have continued to grow steadily since April. To help foreign trade enterprises actively respond to external risks and challenges, we will remain goal-oriented and problem-oriented, focus on the needs of a wide range of enterprises, solve difficulties and problems in a timely manner, and ensure the effective implementation of the already issued policies to stabilize foreign trade with persistent efforts. We will continue to enrich the policy toolkit for stabilizing foreign trade and introduce new incremental policies and measures when appropriate. The key points include:

First, we will step up reforms to integrate domestic and foreign trade. On April 22, the Ministry of Commerce, together with relevant departments such as the NDRC, introduced a "package" of policies to help foreign trade enterprises expand domestic sales and accelerate the integration of domestic and foreign trade. Through the combination of "implementing policies and hosting activities," we will increase support for enterprises heavily affected by tariffs in four areas: market channels, domestic consumption, fiscal and financial support, and service guarantees. First, we will increase real financial support and promote the "three increases and three reductions" policy. The "three increases" means the government will increase fiscal funding, financial institutions will increase credit support, and insurance institutions will increase domestic trade insurance support. The "three reductions" policy refers to promoting the reduction or exemption of housing rent, booth fees, and internet traffic charges for struggling enterprises, as well as lowering the domestic sales costs for foreign trade companies. We are carrying out the "China Tour of Foreign Trade Quality Products" nationwide, with the main framework of "1+10+N," which means: holding one launch ceremony, focusing on the top 10 provinces in foreign trade and consumption, and organizing a series of key events. On April 13, we held the launch ceremony in Hainan, and local events of the "China Tour of Foreign Trade Quality Products" have been carried out one after another. We will actively encourage foreign trade enterprises in automobiles, home appliances, 3C, home decoration, and other industries to be included in the companies supporting the "trade-in" policy. In key industries such as light industry, textiles, clothing, and food, we aim to deepen coordination between production and sales, promote brands matching, and connect products with distribution channels. We will mobilize local governments, industry associations, e-commerce platforms, and major supermarkets and retailers to actively participate in the "China Tour of Foreign Trade Quality Products" campaign, working together to cope with external risks and challenges.

Second, we will help explore diversified international markets. The second phase of the 137th Canton Fair concluded yesterday, with 224,000 overseas buyers from 219 countries and regions around the world attending, setting a record high for the same period in its history. We will continue to maintain the importance of leading exhibitions such as the Canton Fair as a platform, and increase support for domestic exhibition fee reduction and exemption policies, strengthen foreign trade funds assistance for international exhibitions, and create a favorable environment for enterprises to expand into new markets. We will also provide more public information services for foreign trade enterprises, including compilations of foreign trade promotion updates and country-specific trade guides, etc., and offer information on the business environment and supply-demand situations of relevant countries for foreign trade enterprises, continuously improving the overseas trade service system.

Third, we will strengthen trade financial support and guarantees. We will work with relevant departments to further expand the scale and coverage of export credit insurance, giving foreign trade enterprises more confidence to take orders. We will guide financial institutions to increase financing support for foreign trade enterprises and make good use of the financial coordination mechanism for small and micro enterprises. This will further promote low-cost funds to directly reach small and micro foreign trade enterprises, optimize exchange rate hedging services for foreign trade enterprises, and enrich the toolkit.

Fourth, the innovative development of cross-border e-commerce has been accelerated. Last year, China's cross-border e-commerce imports and exports reached 2.63 trillion yuan, a year-on-year increase of 10.8%, becoming a new growth driver for stabilizing foreign trade. In response to changes in the external situation, we have accelerated the innovative development of new business forms of foreign trade such as cross-border e-commerce. Last week, the State Council agreed to establish integrated pilot zones for cross-border e-commerce in 15 cities and regions, including the entire Hainan island and Qinhuangdao, expanding the number of such zones in China to 178. We will facilitate the rapid and effective implementation of the newly established integrated pilot zones, while intensifying special campaigns to empower industrial clusters, foster brand cultivation, and enhance international cooperation in cross-border e-commerce, thereby upgrading the development of these pilot zones.

When meeting with representatives of the international business community, President Xi Jinping pointed out that China will unwaveringly advance reform and opening up, and will only open its door even wider. Recently, the "Work Plan for Accelerating the Comprehensive Pilot Program for Expanding Opening-up in the Service Industry" was issued. We are accelerating opening up in key industries such as telecommunications, medical care and finance, and actively promoting the expansion of opening up in the service industry. Next, we will continue to advance high-standard opening up, actively expand imports, build China's supersize market into a large market shared by the world, injecting new momentum into global economic development. We will proactively align with high-standard international economic and trade rules, and promote high-standard opening up in the fields of service trade and investment.

Facing the complex and ever-changing international situation, China will respond to uncertainties in the external environment with the certainty of expanding high-standard opening up, and continuously enhance the level of economic and trade cooperation with its trade partners. Thank you.