The State Council executive meeting：New measures to stabilize foreign trade

At the State Council executive meeting chaired by Premier Li Keqiang on April 7， decisions were made to build new cross-border e-commerce comprehensive pilot zones， support processing trade， and hold an online Canton Fair， as an effort to stabilize foreign investment and trade， to cope with the impact of the COVID-19 outbreak. Also， inclusive finance and parts of preferential tax policies for small loan companies will be continued.

Measures to stabilize foreign investment and trade：

Build another 46 cross-border e-commerce comprehensive pilot zones.

Promote effective experiences， and implement preferential policies， including exemption of value-added tax， consumption tax， and assessed levy of corporate income tax for retail export goods with the zones.

Support enterprises engaged in processing trade.

·Suspend interest on deferred taxes until end of 2020 for enterprises that sell bonded materials and products on domestic markets；

·Enterprises within comprehensive bonded zones can choose to pay tariffs for imported materials or prod- ucts to be sold on domestic markets；

·Expand fields for foreign investment and reduce goods categories forbidden for processing trade.

Hold 127th China Import and Export Fair （Canton Fair） online during mid-late June.

Improve the capacity of China Railway Express and other freight channels， 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.

Parts of expired preferential tax policies will be extended to end of 2023， including：

Value added tax will be exempted from the interest income of financial institutions earned by offering loans of 1 million yuan and below to small and micro businesses， privately or individually owned business and farmers；

Interest income earned by offering loans of 100，000 yuan and below to farmers and insurance premium earned by offering insurance services for crop farming and breeding industry will be assessed by 90 percent into the total taxable income；

Value added tax will be exempted from the interest income of small loan companies earned by offering farmers loans of 100，000 yuan and below， and income will be assessed by 90 percent into total taxable income； and loan loss reserves provided at 1 percent of year-end loan balance can be deducted pre-tax.