Hebei province recently published a proposal including 18 measurements to improve foreign trade.
According to the proposal, the province will encourage financial institutions to support foreign trade companies. Loans to foreign trade corporations are expected not to fall compared to last year. The province will also encourage financial institutions to launch financial products and innovative services.
With the preferential policies, financial institutions will solve foreign trade companies’ difficulties through liquidity loans, import and export credit loans, bonded loans, discounts of bills, and external guarantee.
Financial support for corporations and projects with good credit history, stable orders, and outstanding performance will increase, and fast lanes will be launchedso they can extend and renew loans more efficiently.
Companies that have difficulties in repayment but good prospects will receive close-end loans or credit rollover.
In addition, foreign trade companies will be encouraged to use policy-based export credit insurance. Corporations will take advantage of the insurance’s risk protection and convenient financing functions to provide security and help them to receive policy loans.
The province will improve exports of traditional industries. Labor intensive exporting industries such as agriculture, light manufacturing, and textiles will receive support from the government to purchase technology, key facilities, as well as upgrade production lines.
Demonstration areas will create export clusters with unique features and strong competency. A three-year plan to improve agricultural exports will be launched, and government departments will promote agricultural foreign trade.
Trade in electromechanical products and services will be improved, with more emphasis on industrial leaders. Preferential policies will solve the difficulties of large-scale exporters, and the province will promote trade in technology and services.
Foreign trade services are another focus of the development. The province has a list of major companies and will make special efforts to cultivate local service providers. Hebei has a total of six such registered companies which have provided services to 202 micro and small foreign trade businesses, which raised 52.2 million yuan ($8.1 million) and exported $19.2 million by the end of July.
The province will also cultivate corporations with intellectual property (IP) raising the number of licensed products, IP talents, and invention patents by more than 10 percent each. Hebei published a list of foreign trade companies with renowned brand image and encouraged them to participate in overseas exhibitions.