New Measures To Stabilize Foreign Trade, Promote New Trade To Overcome Difficulties In Foreign Trade

Li Keqiang, premier of the State Council, chaired a State Council executive meeting on April 7th. He launched a series of initiatives such as the establishment of a comprehensive pilot area for cross border e-commerce, support for processing trade and online holding of the Canton Fair, and actively responded to the impact of the epidemic, and worked hard to stabilize the basic foreign trade and foreign investment; and decided to continue to implement partial tax support policies for Inclusive Finance and small loan companies.

At present, traditional foreign trade has been greatly affected by the epidemic. We must give greater play to the unique advantages of cross-border electricity providers, and help to push ahead with foreign trade difficulties with new formats.

Measures 1., on the basis of the establishment of 59 cross-border electricity supplier comprehensive test zones, 46 new cross-border electricity supplier comprehensive test zones will be set up.

Measures 2. to promote effective measures to promote cross-border electricity supplier development, while supporting the implementation of the cross border e-commerce retail export goods in accordance with the provisions of the exemption from value-added tax and consumption tax, corporate income tax approved collection and other supporting policies.

Measures 3. to study the pilot cities with the conditions of the comprehensive test area into the cross border electricity retail import pilot area, and support enterprises to build and share overseas warehouses.

Co ordinating the development of domestic and foreign trade, supporting the processing trade enterprises to alleviate difficulties and promoting stable foreign investment and steady employment.

Measures 1. for processing trade bonded materials or manufactured goods sold, until the end of the year, temporarily exempted from tax interest.

Measures 2., the processing trade enterprises can choose to import tariffs on imported materials or finished products, and extend them to all comprehensive bonded areas.

Measures 3. expand the scope of foreign investment industries and reduce the categories of prohibited products in processing trade.

In the face of the grim situation of the global epidemic, what should the Canton Fair do?

Measures: the 127th Canton Fair was held online in mid and late 6. We invite customers from home and abroad to display products online, use advanced information technology, provide all-weather online promotion, procurement and docking, online negotiation and other services, and create online trade platform for high-quality and characteristic products, allowing Chinese and foreign merchants to place orders and do business without leaving home.

Stabilize international supply chain and resume production.

Measures: enhance the capacity of China Europe class trains and other freight corridors, promote the improvement of cargo connection and other conditions, fully undertake the transfer of goods by sea and air freight, and support the stabilization of international supply chain and resumption of production.

Help small and micro enterprises tide over difficulties.

Measures: inclusive financial services for small and micro enterprises, individual businesses and farmers to help them tide over difficulties. The linkage of fiscal and financial policies should be implemented, and some of the preferential tax policies that had already been expended were extended to the end of 2023. It includes: interest income from loans issued by financial institutions to small and micro enterprises, individual industrial and commercial households and peasant households is exempt from value added tax; interest income for loans to farmers and loans for 100 thousand yuan and below; premium income for insurance business of seed aquaculture industry is accounted for by 90% of taxable income; the interest income for farmers who are 100 thousand yuan or below of small loan companies is exempt from interest income. The value tax shall be included in the taxable income of enterprise income tax according to 90%, and the loan loss reserve shall be deducted according to the loan balance of 1% at the end of the year, and the income tax shall be deducted before tax.