The Global Spread Of COVID-19 And Its Impact On China's Foreign Trade Companies

May 21, 2020
The Global Spread Of COVID-19 And Its Impact On China's Foreign Trade Companies

In the face of the spread of the global epidemic, TX solar has also actively taken corresponding measures. On the one hand, we presented masks to our foreign customers to ease the shortage of foreign medical supplies. On the other hand, we launched online exhibitions to make up for the loss of unreachable exhibitions Actively produce short videos to promote corporate products and participate in online live broadcasts to expand their popularity.

 

Zong Changqing, Director General of the Department of Foreign Investment, said that a recent survey report by the American Chamber of Commerce in China showed that 55% of the interviewed companies believed that it is too early to judge the impact of the epidemic on the business strategy of the company in 3-5 years; 34% Companies believe that there will be no impact; 63% of the companies surveyed intend to expand their investment in China in 2020. In fact, this is also the case. A group of multinational companies with strategic vision have not stopped at the impact of the epidemic, but have accelerated their investment in China. For example, retail giant Costco announced that it will open its second store in mainland China in Shanghai; Toyota will cooperate with FAW to invest in the construction of an electric vehicle factory in Tianjin; Starbucks will invest 129 million US dollars in Kunshan, Jiangsu to build Starbucks ’world ’s greenest coffee Baking factory, this factory is Starbucks' largest production factory outside the United States, and the company's largest overseas production investment.

 

The repayment of principal and interest of small and medium-sized foreign trade enterprises can be extended to June 30

At present, the problem of financing for foreign trade enterprises is more prominent than the problem of expensive financing. Li Xingqian introduced that in terms of alleviating the financial pressure of foreign trade enterprises, it mainly introduced three policy measures:

First, expand credit supply to allow enterprises to get more. Promote the implementation of the re-loan and re-discount policies that have been introduced, and support the rapid resumption of production and production of various types of enterprises, including foreign trade companies, with preferential interest rate funds.

Second, postponing principal and interest payments, allowing companies to spend less. Implement the deferred principal and interest payment policy for small and medium-sized enterprises, and provide temporary deferred principal and interest payment arrangements for small and medium-sized foreign trade enterprises that are severely affected by the epidemic and have temporary liquidity difficulties. The loan principal and interest can be extended to June 30.

Third, open up green channels to make the funds in place faster.

 

With the rapid spread of the epidemic worldwide, the downward pressure on the world economy has increased significantly, and the uncertainty of China's external development environment is rising.

According to Li Xingqian, based on the research and judgment of changes in supply and demand, the core of the current Chinese government's trade policy is to stabilize the basic foreign trade plate.

First, strengthen mechanism building. It is necessary to give play to the role of the bilateral economic and trade cooperation mechanism, accelerate the construction of free trade zones, promote the signing of high-standard free trade agreements with more countries, establish a smooth trade working group, and create a favorable international trading environment.

Second, increase policy support. Further improve the export tax rebate policy, reduce the burden of enterprises, expand the credit supply of foreign trade industry, and meet the needs of enterprises for trade financing. Support foreign trade enterprises with markets and orders to effectively perform their contracts. Further expand the coverage of short-term insurance for export credit insurance, and promote a reasonable rate reduction.

Third, optimize public services. It is necessary to support local governments, industry organizations, and trade promotion agencies to build public service platforms, provide enterprises with necessary legal and information services, and help enterprises participate in domestic and foreign trade promotion and exhibition activities.

Fourth, encourage innovation and development. Give full play to the promotion of import and export trade by new trade formats and models such as cross-border e-commerce and market procurement, support enterprises to build a batch of high-quality overseas warehouses, and improve the construction of China's foreign trade international marketing network system.