Amidst uncertainty following the trade conflict between China and the US, the latter is creating measures to guarantee that they'll move on as expected even with tariffs imposed on exports and trade. China is introducing improvements in customs, port services, and export tax calculations.
The improvements include streamlining processes as well as improvements in policies that make it easier to open up to foreign trade. Despite the tariff issues from the US, Premier Li Keqiang announces that China is open for trade and is focused on the growth in this area, China Daily reported. The Chinese premier also noted that improvements are needed in export and financial services.
What this means, basically, is that China is committed to creating a shorter time for processes like importation as well as customs clearance for export products. An additional aim is to create a system where documents are lessened by as much as one-third its former amount. Customs clearance costs will also be lessened further.
There are other improvements introduced as well. The fiscal policy is set to receive an overhaul, where it will become "more proactive" and better suited to the improvements introduced in the various processes. The finance ministry looks serious in this improvement to date, the People's Bank of China has implemented measures such as cutting reserve ratios as well as creating improvements in processes directed to small businesses as well as the private sector.
Amid the trade war, China is not yet taking drastic measures such as bigger stimulus packages or monetary easing, however; instead, they are looking to create different efforts according to Bloomberg, to ease the impact on the economy. A strategy that's working is to create different processes such as fixing deleveraging as well as fine-tuning areas that need solutions.
There are many things needing to be fixed. For one, export rebate or the regulations will be fixed. Financial institutions will also be advised to use credit loans and increase support to import and export companies through financing. Particular focus is encouraged on the micro, small, and medium-sized entrepreneurship.
So far, China has survived the tariffs because of this. Before the trade war, import and export profits were at $2.06 trillion, an increase of 7.9 from previous years. With these measures, it is expected that China will ride out the US' tariff storm.
