China Supports Virus-Hit Trade Firms by Boosting Logistics, Online Services, Domestic Sales

 

China Supports Virus-Hit Trade Firms by Boosting Logistics, Online Services, Domestic Sales  
China Supports Virus-Hit Trade Firms by Boosting Logistics, Online Services, Domestic Sales

(Yicai Global) May 12 — Chinese government agencies are looking to aid local foreign trade companies to overcome their supply chain disruptions and demand shortages caused by the Covid-19 epidemic.

The measures rolled out around the country include stabilizing logistics, boosting sales on the home turf, and strengthening e-commerce services, the Economic Information Daily reported today.

Because of factors such as mobility restrictions and epidemic prevention efforts overseas, Chinese firms, and particularly small and medium-sized ones, don’t have enough orders, said Gao Shiwang, head of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products. This is why China should lower its corporate taxes and fees and even bail out some SMEs, he added.

The measures include online and offline stimulus. China’s commerce ministry said recently that participation in this year’s online Canton Fair will be free to all and the ministry will guide regional administrations to help local companies to establish online showrooms to rekindle trade.

Cross-border e-commerce trade could benefit from streamlined refund policies so the country’s customs administration said recently that it will support setting up a service system to ease the ways that domestic firms handle returned goods.

Regional governments, including that of Shanghai, seek to assist local trade firms to expand their sales not only abroad but within the country via e-commerce platforms.

But some may utilize the lull period by looking within. Besides keeping their eyes open for new markets, Chinese trade companies should upgrade their products toward high-end goods to overcome the troubled time, said Liu Xinguo, researcher at the China Enterprise Confederation.

Written by ZHANG YUSHUO on Yicaiglobal

You may also like...