10 departments: Support the development of advanced manufacturing industries such as new energy and new materials, as well as processing and trade in strategic emerging industries
On December 27, 2023, the Ministry of Commerce and 10 other departments jointly issued the "Opinions on Improving the Development Level of Processing Trade". This is another important guiding policy document on the development of processing trade, following the "Several Opinions of the State Council on Promoting Innovative Development of Processing Trade" in 2016.
Processing trade is an important component of China's open economy and foreign trade. In recent years, the domestic and international environment has undergone profound changes, and the scale and proportion of traditional processing trade have also declined. However, this does not mean that the role of processing trade has decreased. Processing trade is still the main driving force for the growth of foreign trade in the central and western regions, as well as the northeast region. It plays a very important role in stabilizing foreign trade, foreign investment, and industrial and supply chains.
Opinions propose 12 policy measures from six aspects. One is to encourage the development of high value-added product processing and trade, proposing to support the development of advanced manufacturing industries and strategic emerging industries such as electronic information, biomedicine, aerospace, new energy, and new materials processing and trade, fully leveraging their radiation and technology spillover effects, and promoting the development and optimization of industrial clusters. Encourage processing and trade enterprises to make full use of preferential policies such as pre tax deduction of research and development expenses, strengthen research and development and technological transformation, and improve manufacturing level and product added value. Encourage local governments to utilize existing funding policies to further support the research and innovation of core technologies for processing and trade enterprises.
Secondly, in terms of promoting the development of bonded maintenance business, two measures have been proposed, including promoting the development of bonded maintenance business in comprehensive bonded zones and pilot free trade zones, and advancing bonded maintenance pilot projects in other regions.
Thirdly, in terms of guiding and supporting gradient transfer, three measures have been proposed: strengthening the construction of gradient transfer carriers, improving the cooperation mechanism for processing trade gradient transfer docking, and increasing support for border areas.
Fourthly, in terms of strengthening financial and tax support, it is proposed to coordinate and make good use of existing funding channels such as special funds for foreign trade and economic development, and implement relevant tax preferential policies; Intensify credit support and export credit insurance support for processing and trade enterprises, and better meet their exchange rate hedging and cross-border RMB settlement needs.
In terms of strengthening factor guarantee, two measures are proposed, including strengthening transportation logistics and energy guarantee, and meeting multi-level employment needs.
Sixth, in terms of optimizing processing and trade management and services, it is proposed to support the expansion of the domestic market and promote the integration of domestic and foreign trade; Timely reduce the list of prohibited goods in processing trade, further optimize relevant measures, and innovate customs supervision mechanisms.
