On March 23, General Office of the Ministry of Commerce and General Office of the Export-Import Bank of China jointly issued the Circular on Responding to the COVID-19: Related Work on Supporting the Construction of the Border (Cross-border) Economic Cooperation Zones and Promoting the Innovative Development of Border Trade. They will strengthen financial support for border (cross-border) economic cooperation zones, serve enterprises’ needs to respond to the epidemic, to resume work and production and to expand business, promote the innovative development of border trade, and foster new momentum for the development of border areas.
The Circular puts forward that the competent commercial departments and export-import banks should coordinate in responding to the epidemic and stabilizing the fundamental of foreign trade and foreign investment, and play the role of policy guidance and financial function. They will provide high-quality services for the border (cross-border) economic cooperation zones and companies inside them, help solve the pressing problems such as the capital turnover and financing expansion facing the resumption of work and production, and ensure the smooth operation of industrial chain and supply chain of border trade, thus minimizing the impacts of the epidemic.
The Circular clearly states that credit support for key sectors will be increased. Rolling development of the border (cross-border) economic cooperation zones will be promoted by “small groups”. Support will be given to border areas to undertake industrial transfer, and the industrial chain will get improved in border trade. The market diversification will be propelled, and “bringing in” and “going global” will be supported to cultivate the new drivers for open development.
The Circular requires that the competent commercial departments at all levels and the head office and branches of Export-Import Bank of China should strengthen planning and coordination, establish cooperation mechanisms, maintain close contact with the parks and enterprises, jointly recommend high-quality enterprises and projects, formulate targeted plans, and implement work practically and in detail. Under the premise of compliance and risk control, all relevant branches of the Export-Import Bank of China should increase the leaning of credit resources. Through syndicated loans, sub-loan of small and micro businesses, investment-loan integration, bank-insurance cooperation, and bank-guarantee cooperation, they should unite financial institutions such as commercial banks, insurance companies, and financing guarantee funds to jointly serve the financing needs of enterprises, so as to make positive contributions to improving the development level of border (cross-border) economic cooperation zones, promoting the innovative development of border trade, and stabilizing and flourishing the border areas.
(All information published on this website is authentic in Chinese. English is provided for reference only.)