China shortens proohibited processing trade list

Zhong Shan, Vice Minister of Commerce, said on June 3 that China's foreign trade is facing unprecedented difficulties and its negative growth in the first half year is a foregone conclusion.

He also noted that the difficulty in quickly reversing the trend in a short term has increased and the foreign trade situation of the second half year still seems gloomy.

During a meeting held on national export credit insurance (ECI) work, Zhong said that ECI is a trade promotion measure which permitted by the World Trade Organization (WTO). It is necessary to attach great importance to the active role that ECI plays in foreign trade development, and make full use of ECI policies properly. Thus help enterprises controlling risks in collecting foreign payments in exports and boost enterprises' confidence in export activities.

It is also important to promote the facilitation of trade financing, alleviate financing difficulties that enterprises encounter, reduce the enterprises' operating costs, and enhance the enterprises' comprehensive export competitiveness.

Zhong also noted that it is necessary to improve the efficiency of ECI, increase its coverage, reduce the related premium rates, and improve the ECI risk compensation mechanism.

By People's Daily Online