Current location:entertainment >>
Processing trade focus to give lift to exporters
entertainment79People have gathered around
IntroductionAn employee works on the production line of an auto parts plant in Shenyang, Liaoning province. [Pho ...
An employee works on the production line of an auto parts plant in Shenyang, Liaoning province. [Photo/CHINA DAILY]
China's recent initiative to bolster processing trade activity will offer export-oriented companies more options to sustain growth in 2024, thus aiding in the transformation from a labor-intensive development pattern to a more dynamic model in global trade, said industry sources and analysts.
The government introduced a guideline to improve the development of processing trade in late December. It put forward 12 measures encompassing six categories, encouraging the processing trade of high value-added products, while supporting the development of advanced manufacturing and strategic emerging industries engaged in the sector.
Processing trade refers to the activity of importing all, or part of, required raw and auxiliary materials from abroad, and reexporting related finished products after processing or assembly by companies within China.
The proportion of processing trade in China's total foreign trade peaked at 53.4 percent in 1998. The country's value of exports and imports related to processing trade amounted to 5.57 trillion yuan ($779.99 billion) in the first three quarters of 2023, accounting for 18.1 percent of its total foreign trade, said the Ministry of Commerce and the General Administration of Customs.
With escalating labor costs putting pressure on traditional manufacturing sectors in China's coastal areas, coupled with a surge in trade protectionism by certain countries and softening external demand, these measures have been crafted to create new growth points, said Zhang Jianping, director of the China Center for Regional Economic Cooperation at the Chinese Academy of International Trade and Economic Cooperation in Beijing.
For example, the government allows companies to conduct bonded maintenance services for a batch of industrial goods within China's comprehensive bonded zones.
Suzhou Soin Internet Technology Inc, a Jiangsu province-based printing equipment manufacturer, initiated its first bonded maintenance project on Dec 31. This endeavor focuses on servicing a 5-metric ton printing machine located within Wuzhong Comprehensive Bonded Zone in the city.
With over 1,000 clients both at home and abroad, the Chinese company's maintenance service model previously involved directly importing used printing machines from abroad. These imported machines would then undergo a comprehensive process involving maintenance, refurbishment and upgrades before being reexported.
"Due to the large size and high unit cost of these mega printing machines, each imported equipment unit requires the payment of relevant taxes, together with transportation and storage expenses, which has placed significant pressure on our operational expenditures," said Jiang Anli, the company's chairman.
Saying that the value of printing machines the company imported amounted to 140 million yuan last year, Jiang said that with the support of policy incentives, the value of the company's bonded maintenance services for imported equipment is projected to exceed 200 million yuan in 2024, making this type of service a new growth area for the company in expanding into global markets.
As a crucial link in the industrial chain, maintenance services deeply integrate manufacturing and service sectors, providing new impetus for the transformation of the comprehensive bonded zone from traditional simple processing to diversified production services, said Zheng Ke, an official at Suzhou Customs, a branch of Nanjing Customs.
"One of the government's new measures we are most concerned about is the decision to encourage large-scale companies to conduct processing trade. Customs authorities have provided us with detailed explanations, and our sales specialists have established communication channels with relevant units within the group," said Hu Shouguo, head of the export unit at Dalian, Liaoning province-based Dayang Group Co Ltd, a large-scale exporter of made-to-measure suits with more than 4,500 employees.
"We will actively facilitate the unified management of group accounts and the free flow of materials, ensuring implementation of these measures in an organized manner. It is expected to reduce annual outbound processing filings by over 200 cases and render exempting a guarantee deposit of 800,000 yuan this year," Hu said.
Tags:
Reprint:Friends are welcome to share on the Internet, but please indicate the source of the article when reprinting it.“International Image news portal”。http://capeverde.popular-vines.com/article-30c199924.html
Related articles
Verona confirms Serie A status for another year after beating Salernitana
entertainmentSALERNO, Italy (AP) — Verona secured a place in next year’s Serie A after beating Salernitana 2-1 on ...
Read moreWorld's largest Peppa Pig outdoor theme park to open in Shanghai
entertainmentSHANGHAI, April 24 (Xinhua) -- Asia's first and the world's largest Peppa Pig outdoor theme park wil ...
Read moreSteven Stamkos scores twice, Lightning avoid elimination with 6
entertainmentTAMPA, Fla. (AP) — Steven Stamkos scored his fourth and fifth goals of the series and the Tampa Bay ...
Read more
Popular articles
- Shohei Ohtani's first walk
- Caitlin Clark revs up Pacers fans with pregame playoff appearance in IndyCar replica
- Shedeur Sanders shines, new transfers step up in Colorado's spring game on rainy and cool day
- Russia vetoes UN Security Council draft resolution on weapons of mass destruction in outer space
- Verona confirms Serie A status for another year after beating Salernitana
- From Catherine Zeta Jones and Carys Douglas to Cindy Crawford and Kaia Gerber
Latest articles
Baby Reindeer's real
Khloe Kardashian's 21
Two Russian journalists jailed on 'extremism' charges for alleged work for Navalny group
Jets trade defensive lineman John Franklin
Elon Musk gets approval from FDA to implant his Neuralink brain chip into a second patient
Assailants ambush and kill 3 police officers in southern Chile, shaking the country
LINKS
- Meryl Streep, 74, says 'she's in awe of actresses who are producing movies themselves'
- Fat pride influencer who says other passengers should fund free seats for plus
- The US Open men's final is shifting to ABC this year. The women's final will stay on ESPN
- Vanderbilt coach Mark Byington brings Jaylen Carey with him from James Madison
- Netflix will carry live NFL games on Christmas Day for 3 years, including 2 this season
- Revealed: Queen Camilla's immediate reaction to seeing King Charles' portrait for the first time
- I got stuck at one of the world's northernmost hotels
- Queen Camilla pledges not to buy any more fur in latest Palace move away from animal products
- #MeToo struggled to find traction in France. Then Judith Godrèche came forward
- Hungary will vote against U.N. resolution commemorating the 1995 genocide in Bosnia, minister says