Observer Report
Beijing
A larger number of foreign enterprises in China are resuming work and production as life is returning to normalcy as 8,200 key foreign enterprises across China have resumed their operations showing 76.6 percent overall recovery rate.
Of this huge total, 81.2 percent are those in the manufacturing sector, and 66.8 percent for those in the service sector, according to the survey. Ministry of Commerce (MOFCOM) recently issued guidelines on improving services for foreign enterprises, as well as attracting investments, stabilizing foreign trade and foreign investment, and stimulating consumption.
It also established a working mechanism with relevant departments and local governments to timely spot and address foreign enterprises’ difficulties in work resumption.
The ministry facilitated the work resumption of over 20 suppliers of key auto parts in central China’s Hubei province, which effectively tackled the problems encountered by the auto sector that has a long industrial chain.
Besides, it also joined hands with the Civil Aviation Administration of China to match foreign enterprises’ demand with airline companies, so as to relieve the pressure on electronic enterprises.
“The country has unveiled policies and measures to stabilize foreign investment and worked hard to facilitate and protect investment this year, which has continuously boosted the confidence of these enterprises,” said Gao Feng spokesperson of the MOFCOM, adding that a series of key projects have been contracted, or are in implementation.
Many local governments and relevant departments in China have introduced fiscal, tax, financial,social security and employment policies,in a bid to help the enterprises hit hard by the sudden COVID-19 crisis, especially medium, small and micro businesses.
It is stipulated in the Foreign Investment Law that all national policies on supporting the development of enterprises shall equally apply to foreign-funded enterprises in accordance with the law.
China has a 500,000 foreign trade companies, and 84,000 of them are funded by foreign capital which account for 40 percent of the country’s total imports and exports. They are also beneficiaries of the preferential policies.
Considering that some foreign enterprises may not fulfill their contracts or deliver the products on time due to the epidemic, the China Council for the Promotion of International Trade are providing them with certificates to shield them from legal damages arising from the novel coronavirus disease.
