(Photo: Cao Yaqin from Southcn.com)

How are foreign trade companies getting back to work in Guangdong, and will there be any incentive policies to stabilize businesses?

Zheng Jianrong, Director-General of the Guangdong Department of Commerce, addressed these concerns at the press conference on March 6th.

According to Zheng, 93 percent of key foreign trade firms have resumed operations across the province, and more than 70 percent of their employees have returned to work. Although foreign trade companies’ business is gradually getting back to normal, they are still facing various challenges such as increasing costs, the need to upgrade technology, financing problems and risk in entering the global market.

To boost and stabilize foreign trade, the authorities have been discussing incentive measures in the following six areas:

1.Support the development of processing trade companies. Guangdong will help these companies guarantee the output through upgrading technology, financial support and building new bonded areas. It will also push forward the settlement of foreign-funded projects through a mechanism that directly connects senior officials of the province with foreign investors.

2.Actively seek partnership in the global market. Zheng stressed that Guangdong will strengthen its support to enterprises, helping them to seek partnership in the overseas market and face the challenges brought by the COVID-19 outbreak and the complicated business environment worldwide at present.

“Once the situation has been stablized, the province will continue its popular trade exhibitions such as the Canton Fair, China High-tech Fair and Guangdong 21st Century Maritime Silk Road International Expo. It will also encourage enterprises to attend exhibitions outside China. For example, the Department of Commerce plans to organize 41 exhibitions over 25 different countries to promote Guangdong products this year,” said Zheng.

3.Expand the import of key commodities. Support the aircraft leasing business and the import of different types of clean energy. Build import platforms for the trade of medicine and medical equipment and agricultural products.

4.Support the development of service-oriented trade enterprises.

5.Improve foreign-trade related financial services and taxation policies.

6.Bring more convenience to cross-border trade. Improve the effectiveness and lower the costs of customs clearance.

In terms of major foreign-funded projects, Zheng said although the epidemic has slowed down progress on some projects, foreign investors are still positive about the development of Guangdong in the long run considering its significant advantages in infrastructure, industrial facilities, business environment and labor quality.

According to statistics, Guangdong witnessed a 1.5 percent increase in actual utilization of foreign investment in January, which is indicative of a positive trend in foreign investment, especially in regards to major foreign-funded projects.

Authors: Jasmine, Zoey (Intern)

Editors: Olivia, Simon