Archive for ‘stabilize’

23/04/2020

China Focus: China-Europe freight trains help stabilize global supply chain

SHENYANG, April 23 (Xinhua) — With trucks standing bumper to bumper and large cranes loading containers on the train, work returned to normal at a logistics base in northeast China’s Liaoning Province.

The base, where the China-Europe freight trains are set to depart in Shenyang, the provincial capital, has seen stable departures since early April as the novel coronavirus epidemic ebbs away.

With the global supply chain being affected by restrictions in air, land, and port travel due to the global pandemic, China-Europe railway has been playing a more important role, experts say.

“The train was operated by staff in different sections, which means it does not require cross-border personnel health inspections, giving it advantages during the pandemic,” said Shan Jing, an industry insider who wrote a book on China-Europe freight trains.

In March, a total of 809 China-Europe freight trains carrying 73,000 containers were sent across China. Both numbers hit a monthly record.

At the Shenyang logistics base, trains depart to travel through Russia, Belarus, Poland and finally reach Germany in around 18 days. As of April 13, a total of 130 trains carrying 11,200 standard containers had departed from the base.

“The province sends a stable number of five trains each week,” said He Ruofan, a business manager with the Shenyang branch of China Railway Container Transport Corp., Ltd, operator of the trains.

The stable operation has made the route a top choice for many Chinese enterprises, said Yao Xiang, a manager with logistics group Sinotrans’s northeast company.

“Many shipping routes have been canceled, and the rest are more and more expensive amid the epidemic,” said Yao, noting the price for air cargo surged 5 to 10 times the normal price as flights decreased from China to Europe.

With increasing departing trains, returning trains on the route have also been increasing, Yao said.

Among the 130 trains that have been sent from the Shenyang base so far this year, 33 returned, carrying construction materials, car parts, mechanical equipment, and daily products.

“These goods provide supplies to large companies like BMW and Michelin’s Shenyang factories,” Yao said.

Medical supplies have also been sent to hard-hit Europe to fight against the coronavirus pandemic.

As of April 18, a total of 448,000 pieces of medical supplies weighing 1,440 tonnes had been sent to European countries via the route, according to China State Railway Group Company, Ltd.

“China-Europe freight trains have shown great service capabilities during the epidemic,” said Shan, the industry insider. “It serves as a new choice for European enterprises, and I believe more people will come to realize the importance of the route.”

Source: Xinhua

08/04/2020

China to set up new integrated pilot zones for cross-border e-commerce to stabilize foreign trade, investment

BEIJING, April 7 (Xinhua) — China will set up 46 new integrated pilot zones for cross-border e-commerce, as well as support processing trade with new steps and hold the Canton Fair online to keep foreign trade and investment stable amid the epidemic, according to the State Council’s executive meeting chaired by Premier Li Keqiang Tuesday.

Figures from the General Administration of Customs showed that the retail sales of China’s cross-border e-commerce businesses reached 186.21 billion yuan (about 26.25 billion U.S. dollars) in 2019.

The Tuesday meeting noted the massive impact of the fast-evolving outbreak worldwide on the global economy, trade and investment. The fast growth of cross-border e-commerce in recent years has become a new highlight in the country’s foreign trade. It is important to leverage the unique strength of cross-border e-commerce when the traditional sectors in foreign trade are hit hard in the COVID-19 outbreak, in order to drive foreign trade with new business forms in this trying time.

“Tackling the economic impact of the outbreak abroad is a pressing task. With the tight containment measures introduced across countries, foreign trade and investment are persistently going downward,” Li said.

The meeting decided to set up another 46 integrated pilot zones for cross-border e-commerce on top of the 59 existing ones. In addition to applying the practices proven effective in boosting the flow of commerce, firms in these zones will enjoy such support policies as exemption of value-added and consumption taxes on retail exports, and assessed levy of the corporate income tax.

Integrated pilot zones with proper conditions will be listed into the pilot program on retail imports of cross-border e-commerce. Companies will be supported to jointly build and share overseas warehouses.

“We must accelerate the development of cross-border e-commerce and other new models to boost foreign trade and investment. Competent departments must exercise sound quality supervision and ensure unimpeded logistic services,” Li said.

Measures to boost processing trade are also discussed at the meeting. With processing trade accounting for one fourth of the country’s foreign trade, the meeting stressed the need to coordinate domestic and foreign trade and help companies engaged in processing trade tackle their difficulties, as well as to stabilize foreign investment and employment.

“In a globalized world, countries all have a stake in each other’s future. The Chinese economy has been deeply integrated into the world economy. We must promptly analyze the outbreak’s impact on the industrial chains and work out our policy response accordingly. This is vitally important for stabilizing employment,” Li said.

It was decided at the meeting that interests of the deferred tax for the bonded materials or finished products in processing trade sold domestically will be temporarily waived till the end of this year. The pilot program where processing trade companies may pay duty for their domestic sales as either imported materials or finished goods will be extended to all the integrated bonded zones.

The category of industries where foreign investment is encouraged will be expanded, and the list of prohibited goods in processing trade will be shortened.

“We must take a holistic approach in developing domestic and foreign trade, and swiftly introduce support policies prioritizing the domestic sales by processing trade companies,” Li added.

It was also decided that given the serious outbreak situation globally, the 127th China Import and Export Fair, also known as Canton Fair, will be hosted online in mid- to late June.

Companies from home and abroad will be widely invited to exhibit their products online. Powered by advanced information technology, the Fair will provide around-the-clock services for online product promotion, matchmaking and business negotiations. It will be an Internet-enabled foreign trade platform of quality and specialty products where Chinese and foreign businesses may place orders and cut deals without the hassle of travel.

Source: Xinhua

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