How do the Chinese authorities plan to restore production and trade
The coronavirus outbreak has hit the country’s economy. In order to defeat the epidemic, a number of tough measures had to be taken – to close down cities, reduce production processes, limit exports and imports. As a result, the disease was neutralized, but now we have to deal with the consequences. The Chinese authorities have announced the introduction of a number of measures aimed at stabilizing and restoring the economy.
The project was developed for a long time by the tax service and commission, which regulates banking activities. It includes comprehensive steps to minimize the impact of the pandemic and strengthen local markets. The document recommends creditors to provide financial assistance to small companies that have a good tax payment rating. First of all, it concerns the reduction of loan payments, so that the enterprises could restore their full activity as soon as possible.
These measures include the introduction of special lending programs from banks, expansion of opportunities for processing loans, increasing their maturity, as well as postponement of payments.
In addition, various options are being prepared to develop innovative solutions for small businesses so that they can increase market share and improve their products.
In this environment, it is also important to stabilize trade processes. Special attention is paid to innovative solutions in electronic commerce. Experts are already working on the creation of pilot zones to support export processes and to make them online where possible. A total of 46 such areas are promised to be set up, where cross-border electronic commerce will be carried out. Export goods will not be subject to value-added and consumption taxes here. In addition, the Chinese government provides support to companies that are building new warehouses in other countries or are sharing existing facilities.
China’s strategic plan also includes the provision of employment. The Ministry of Human Resources has organized a programme to provide employment for Chinese graduates this year. To that end, some 10 million jobs have been created.
At the end of March, the Chinese Government sent about $132.3 million in insurance premiums to 2.3 million unemployed people. Benefits were also provided for migrants who were unemployed but had a temporary residence permit.
This is only part of the measures that have been introduced by the Chinese authorities to deal with the effects of the coronavirus. Officials hope that the strategy adopted will help to restore production and establish most of the processes that existed before the pandemic in the shortest possible time. It is worth noting that the measures have already started to yield positive results, the country’s economy is gradually recovering, and there is a good dynamics of resumption of import and export processes.