China Attracts Labor-Intensive Industries and Foreign Companies to Underdeveloped Northwestern Regions

Providing Various Benefits Including Land Use to Attract Foreign Capital
Premier Li Keqiang Strives to Support Export and Foreign Companies... Efforts to Revitalize the Economy

[Asia Economy Beijing=Special Correspondent Jo Young-shin] The Chinese government has prepared support measures for Chinese export companies and overseas investment companies to revive the economy weakened by the novel coronavirus infection (COVID-19). This is interpreted as the Chinese government's determination to mobilize all possible means for economic revitalization.

On the 30th, according to Chinese media such as the state-run People's Daily and Xinhua News Agency, Premier Li Keqiang held a State Council executive meeting the day before to discuss plans to expand overseas trade and foreign capital.

The Chinese government decided to actively utilize export credit insurance to support export companies struggling due to COVID-19. They plan to minimize the risks for export companies by supporting credit guarantees in addition to credit insurance. Measures such as raising the guarantee limit appear to have been discussed.

At the meeting, plans to attract labor-intensive industries to the underdeveloped northwestern region compared to the southeastern region of China were also discussed. This aims not only for regional balanced development but also to create employment in the area and revitalize the economy.

Additionally, new forms of business such as overseas e-commerce and overseas logistics warehouses, comprehensive overseas trade services, will be actively supported in the region.

To attract foreign capital, the investment environment will also be improved. Overseas companies possessing advanced technology will be provided with special benefits such as land use, and financial support including loans will be offered.

The meeting also discussed measures to support an estimated 5 million displaced rural migrant workers and ways to increase income in rural areas.

Premier Li had previously stated during the announcement of the second quarter GDP results that the Chinese economy is recovering from the COVID-19 shock and that economic revitalization policies for the second half of the year would be prepared.

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