China will adopt policy measures to boost consumption, as part of efforts to maintain stable economic fundamentals and secure and improve people’s lives, according to a decision taken at the executive meeting of China’s Business Council on Wednesday. State chaired by Premier Li Keqiang.
The meeting also decided on greater policy support, such as export rebates, to promote steady growth in foreign trade.
“Consumption is a constant driver of economic growth and helps secure and improve people’s livelihoods.” says Li. “Taking a coordinated approach with both short-term and long-term needs in mind is key to keeping consumption stable for now and unlocking potential with holistic measures.”
The meeting decided on measures to counter the impact of COVID-19 and boost consumption recovery and growth.
Relief policies for hard-hit sectors such as catering, retail, tourism, civil aviation and road, river and rail transport will be implemented quickly and fully, and local authorities will be encouraged to step up their support and assistance to these sectors, in order to stabilize more market entities. in consumer services.
The supply and price stability of essential consumer goods will be ensured and logistics kept fluid. A host of large-scale, full-function warehouses will be planned in a well-calibrated manner and built on the outskirts of cities to mobilize nearby living necessities in times of emergency.
New modes of consumption will be encouraged. The integration of online and physical consumption will be accelerated, and “smart plus” consumption such as smart products and services will be cultivated and enhanced.
“Financial institutions should strengthen support for the consumption of big-ticket items. Meanwhile, this consumption should be made more available in rural areas to help improve people’s lives,” Li said.
Consumption in priority areas will be expanded. The consumption of services such as medical and health care, elderly care and childcare will be encouraged, and the private sector will be supported in the provision of these services to consolidate the weak links.
Spending on appliances, automobiles, and other big-ticket items will be encouraged. No new restrictive measures on the purchase of cars will be established at the sub-national level. Localities where purchasing restrictions are already in place should gradually increase the new license plate quota. The consumption of new energy vehicles and the construction of battery charging facilities will be supported.
The consumer spending potential of counties and townships will be further tapped. Commercial distribution companies and e-commerce platforms will be guided to bring their services to rural areas, and the consumption of branded and premium products will be encouraged in rural areas.
The reform will be deepened to remove consumption constraints. The healthy and steady development of consumer platforms will be advanced. Financial institutions will be encouraged to develop a wider variety of consumer financial products.
The construction of key projects will be accelerated and the development of consumption-related infrastructure can be financed by special purpose bonds from local governments, in order to take advantage of the catalytic role of investment in the expansion of consumption. Irregularities such as counterfeiting, tariff fraud and misleading advertising will be punished in accordance with the law.
To help ease the difficulties faced by foreign trade enterprises and promote stable growth of imports and exports, export rebates will be better used as an inclusive and equitable policy tool in line with international rules, and l ‘foreign trade business environment will be improved in many ways. foreheads.
“The rapid growth of imports and exports last year contributed significantly to the stability of economic activity. Still, pressure is mounting to maintain steady growth in foreign trade this year,” Li said. “We have to work hard to keep foreign trade stable. All relevant departments should work together and fully implement relevant measures on the ground.
Export rebates will be better aligned with export credit insurance. Export credit insurance claims received by foreign trade enterprises will be treated as foreign exchange earnings and rebates will be granted accordingly. The coverage of the departure tax refund policy will be expanded and facilitation measures such as purchase tax refunds will be promoted.
The export refund process will be expedited. Data sharing between departments will be improved, the documents required for export rebates will be simplified, and the entire process, from declaration to review and comment, will be managed online.
The average time needed for export discounts will be further reduced from seven to no more than six working days this year. Integrated foreign trade service enterprises will be supported in the management of export rebates on behalf of manufacturers.
The business environment for foreign trade will be improved. Customs clearance for the return of export goods will be made more efficient. Policies will be designed to support the development of overseas warehouses and facilitate cross-border e-commerce returns and exchanges.
Businesses with a better credit history will benefit from easier customs clearance and tax refunds. Fraudulent practices such as false exports and fraudulent tax relief will be punished to the full extent of the law.