China’s Ministry of Commerce has issued a significant notice, urging insurance companies to step up underwriting support for the nation’s “little giants” and “hidden champions” among small and medium-sized enterprises (SMEs). These SMEs, which are engaged in manufacturing and hold global leadership in market share respectively, are key to China’s economic diversification and expansion. The move is part of a broader strategy to bolster the growth and international competitiveness of these enterprises.
The notice also emphasizes the role of banking institutions. They are called upon to continuously refine and enhance financial services for foreign trade enterprises. This includes streamlining processes in credit approval, loan disbursement, and repayment. Additionally, efforts are to be made in optimizing cross-border trade settlement, spurring the growth of cross-border e-commerce, and facilitating agricultural product exports and imports of crucial equipment and energy resources.
With 22 pilot free trade zones (FTZs) spread across the country’s coastal, inland, and border regions, contributing a substantial portion of foreign investment and trade volume, China is further looking to drive innovation in green and border trade. This will involve simplifying cross-border business travel, strengthening maritime transport support, and augmenting employment services for foreign trade enterprises. The measures aim to create a more conducive environment for both SMEs and the overall foreign trade sector, as the country continues to adapt and thrive in the global economic landscape.
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