PBOC Shanghai Head Office issues supportive measures for private businesses

Date Nov 23 2018 17:00:58 Source:Xinhua

The People's Bank of China (PBOC) Shanghai Head Office has issued 20 measures to further improve financial services for Shanghai's private and technologically innovative businesses.

To facilitate the healthy development of Shanghai's private economy, the Shanghai Head Office of the country's central bank, will make efforts to boost the morale of the city's private businesses, alleviate financing difficulties and create a fairer and more convenient financing environment.

Specifically, the PBOC Shanghai Head Office will provide refinancing limits of no less than 10 billion yuan (1.45 billion U.S. dollars) for Shanghai's private and small businesses in technological innovation and high-end manufacturing, and handle rediscounts of no more than 15 billion yuan for such businesses.

The new measures will waive the guarantee of start-up business loans below 500,000 yuan. The bank will expand borrowers' maximum loan amount from 1 million yuan to 2 million yuan.

The new policy also strengthens the incentive mechanism on credit assessment and cuts down commercial lenders' average interest rates for small and micro businesses by 1 percentage point from the level recorded in the first quarter, the bank said.

Beijing criticizes update of IPR report

Date Nov 23 2018 16:27:31 Source:China Daily

China expressed serious concern over the latest update of the Section 301 report by the United States and its accusations targeting China's intellectual property rights practices, the Ministry of Commerce said on Thursday.

China has repeatedly emphasized that the investigation and related measures are based on US domestic laws and are intended to implement unilateralism and protectionism. The US has violated promises it has made to all World Trade Organization members and has ignored and broken rules and regulations, said Gao Feng, the ministry's spokesman.

"China will not accept groundless accusations," Gao said.

"Innovation and intellectual property are by no means exclusive patents of the US. The use of IPR and the promotion of economic and social progress are also not the exclusive rights of an individual country," said Ma Yu, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.

Ma said IPR should not be turned into a tool for a country to suppress development of other countries or promote its own self-interests.

On Monday, the US proposed to step up scrutiny over technology exports in 14 key high-tech areas including artificial intelligence and microprocessor technology.

Gao said China is currently evaluating the impact of such a proposal.

"We think national security can be achieved in an open market," he said. "Overgeneralizing the national security issue in order to erect unnecessary trade barriers will do no good to national security or balanced trade development."

Experts contend the proposal may harm other countries' high-tech industries, but will also backfire to cause US technology companies to lose business opportunities.

"Many products of US hightech manufacturers have already been deeply integrated into the global value chain. This move will damage the financial interests of the US companies," said Liu Yingkui, a researcher at the China Council for the Promotion of International Trade.

It will also hurt major US multinational companies, particularly those with production facilities in China, the European Union, South Korea and Japan, because they use them to make goods or provide services, said Sun Fuquan, a researcher at the Chinese Academy of Science and Technology for Development.

New economy output accounts for 15.7% of China's GDP

Date Nov 23 2018 11:53:30 Source:Xinhua

The value-added output of new industries, new types of business and new business models accounted for 15.7 percent of China's GDP last year, up 0.4 percentage points from 2016, the National Bureau of Statistics (NBS) said Thursday.

It was the first time the NBS officially released data on the value-added output of the new economy.

In current prices, new economic output grew 14.1 percent in 2017, outpacing the GDP growth in current prices by 2.9 percentage points, according to the NBS.

The output of new industries, business types, and models in the service sector accounted for 8.4 percent of the country's GDP last year, up 0.4 percentage points from 2016 and higher than that in the agricultural and industrial sectors.

New economic output in the service sector expanded 17 percent in current prices in 2017, NBS data showed.

New industries and business forms have become a greater driving force for the Chinese economy amid technology development, market upgrading and government efforts to boost mass entrepreneurship and innovation.

Tianjin FTZ pushes for building of free port

Date Nov 23 2018 10:38:05 Source:China Daily

Tianjin, a coastal city in northern China, is stepping up its efforts to build a high-standard pilot free trade zone and apply for the establishment of a free port to further drive the joint development of the Beijing-Tianjin-Hebei region, the zone's administration said.

In an email interview with China Daily, the administration revealed that it has, following detailed research and discussion, drafted and revised the construction plan of the Beijing-Tianjin-Hebei free port, which would further integrate regional development.

The plan will be submitted to the higher authorities "in due course", it said. If it is approved, the blueprint for the free port would serve as a platform for the region to open further to the outside world.

A free port is set up within a country or a region's borders but is outside its customs' supervision. It is open to all commercial vessels on equal terms. Goods may be unloaded, stored and shipped without the payment of customs duties.

A free port needs specially designed policies in terms of market access, financial systems and taxation, said Wei Jianguo, vice-president of the China Center for International Economic Exchanges.

Earlier in 2016, a 10 billion yuan ($1.44 billion) government-backed fund was set up to promote the development and integration of the Beijing-Tianjin-Hebei region.

The China (Tianjin) Pilot Free Trade Zone was set up in 2015. More than three years on, the zone has made significant advances.

Peng Zhiwei, director of the department of international economics and trade at Nankai University, said the Tianjin FTZ has made several breakthroughs in terms of institutional reform, investment promotion, trade liberalization, and the innovation of financial systems.

By the end of October, the zone had carried out 60 percent of the 128 pilot tasks outlined in an earlier overall plan.

Concrete measures have also been taken in the zone to facilitate trade and investment, offering a one-stop service to companies. The average customs clearance time has been cut from up to two days to two hours. In addition, customs clearance costs have been reduced by 70 percent, and logistics costs by 30 percent.

Since it was launched, the FTZ has attracted 2,353 foreign companies, with total registered capital of 433.1 billion yuan.

For instance, Airbus China, located in the Tianjin pilot FTZ, signed a framework agreement in January with its Chinese partners to increase local production.

Vice-Minister of Commerce Wang Shouwen said China is gradually shifting from high-speed to high-quality growth, and that there is huge market potential. The country welcomes multinationals to seize growth opportunities in the Chinese market.

Wang made the comments at the 11th International Roundtable of Multinational Leaders. The conference, held earlier this month in Tianjin Binhai New Area, brought together government officials and business leaders to discuss the opportunities and challenges that lie ahead.

China announces 3-year tax exemption on interest gains for overseas investors

Date Nov 23 2018 10:33:58 Source:SHMET

China's Ministry of Finance said Thursday that the country will exempt overseas institutional investors from some bond market taxes.

For the next three years beginning Nov 7 this year, overseas institutional investors will be exempt from paying corporate income tax and value-added tax on their interest gains derived from investment in the country's onshore bond market.

The move aims to further push forward the bond market's opening-up, the ministry said in a statement jointly issued with the State Administration of Taxation.

The tax references will not be eligible for interest incomes of institutions that overseas institutions set up in China, according to the statement.