"This Year, China's Trade Faces Unprecedented Challenges... Companies Endure Severe Difficulties"

[Asia Economy Beijing=Special Correspondent Park Sun-mi] China's Ministry of Commerce stated that China's foreign trade is facing unprecedented challenges due to the spread of the novel coronavirus infection (COVID-19).

On the 18th, Minister Zhongshan of the Ministry of Commerce said at a press briefing, "The outbreak of COVID-19 has caused a sharp decline in global demand, and trade is facing unprecedented challenges. Companies are going through extremely difficult times due to this situation. As a result, China's economic and social development has suffered a huge shock."

He explained, "The trade industry is experiencing difficulties such as financial difficulties, a decrease in orders, and increased risks in the industrial chain. Previously, even when companies received orders, logistics were not smooth, so they could not properly deliver the ordered goods. Later, even if production capacity recovered, orders disappeared, causing companies to struggle."

He added, "Some companies can overcome these difficulties through their own efforts, but it has been diagnosed that some companies need government assistance. Support and help from the government are needed in tax, finance, and insurance sectors. Some policy measures are proving effective, such as the export tax rebate processing time being shortened from about 10 days to one week. This is helping companies with cash flow."

He stated, "The Chinese government will stimulate domestic demand and promote consumption," and "The China International Import Expo held in Shanghai from November 5 to 10 this year, and the online Canton Fair held from June 15 to 24, will fully play their roles as open platforms."

Regarding the movement of some foreign companies leaving China, he said, "Smart entrepreneurs do not abandon the Chinese market," and "There are concerns about the relocation of production bases of some foreign-invested companies, but China's advantages in utilizing foreign investment are clear. China has abundant high-quality labor resources and a market formed by a population of 1.4 billion."

This content was produced with the assistance of AI translation services.