China Will Host Online Canton Fair For The First Time

- Apr 09, 2020-

Xinhua News Agency, Beijing, April 7th: Premier Li Keqiang of the State Council chaired an executive meeting of the State Council on April 7 to launch a series of measures such as the establishment of a comprehensive cross-border e-commerce pilot zone, support for processing trade, and the online holding of the Canton Fair. Basic foreign investment; decided to continue to implement some tax support policies for inclusive finance and microfinance companies.

The meeting pointed out that the current global epidemic pandemic has accelerated its spread, which will have a huge impact on the world economy and international trade and investment. In accordance with the Party Central Committee and the State Council, we must make good preparations for the "six stability" work, persist in expanding opening up, adopt a series of measures to stabilize foreign trade and stabilize foreign investment, and strive to alleviate the serious impact of our economy, especially employment.

The meeting pointed out that the scale of China's cross-border e-commerce import and export has continued to grow rapidly in recent years, becoming a new bright spot in the development of foreign trade. At present, traditional foreign trade has been greatly affected by the epidemic. It is necessary to give full play to the unique advantages of cross-border e-commerce and help foreign trade to overcome difficulties with new formats. The meeting decided that on the basis of the establishment of 59 cross-border e-commerce comprehensive test areas, 46 new cross-border e-commerce comprehensive test areas were established. Promote effective practices to promote the development of cross-border e-commerce, and implement supporting policies such as exemption of value-added tax and consumption tax, and verification of corporate income tax on cross-border e-commerce retail export goods in the comprehensive test zone, and study the comprehensive test zone that will be qualified The city where it is located is included in the pilot scope of cross-border e-commerce retail imports, supporting companies to jointly build and share overseas warehouses.

The meeting pointed out that processing trade accounts for 1/4 of China's foreign trade. We must coordinate the development of domestic and foreign trade, support processing trade enterprises to alleviate difficulties, and promote the stabilization of foreign investment and employment. First, domestic bonded materials or finished products for processing trade shall be sold domestically, and tax deferred interest shall be temporarily exempted before the end of the year. Second, it is necessary to expand the pilot of processing trade enterprises to pay customs duties on imported materials or finished products to all comprehensive bonded areas. Third, we must expand the scope of industries that encourage foreign investment and reduce the types of products prohibited by processing trade.

According to the severe situation of the spread of the global epidemic, the meeting decided that the 127th Canton Fair will be held online in the middle and late June. Invite domestic and foreign merchants to display products online, use advanced information technology, provide all-weather online promotion, supply and purchase docking, online negotiation and other services, to create an online foreign trade platform of high-quality specialty products, so that Chinese and foreign merchants can place orders and do business without leaving the house. .

The meeting pointed out that we must enhance the capacity of freight routes such as China-Europe trains, promote the improvement of cargo connection and other conditions, fully undertake the transfer of goods by sea and air, and support the stability of the international supply chain and the resumption of production.

In order to strengthen inclusive financial services for small and micro enterprises, self-employed industrial and commercial households, and farmers, to help them overcome difficulties, the meeting decided to implement fiscal and financial policy linkage and extend some of the expired preferential tax policies until the end of 2023. Including: VAT exemption for interest income from loans of RMB 1 million and below issued by financial institutions to small and micro enterprises, self-employed industrial and commercial households, and farm households; interest income from loans of RMB 100,000 and below issued to farmers, and insurance for the breeding industry Business premium income is included in income tax payable income at 90%; interest income from loans from small-loan companies of RMB 100,000 and below is exempt from VAT and 90% is included in corporate income tax payable income. The loan loss reserve calculated at 1% of the year-end loan balance is allowed to be deducted before income tax.