China supports domestic sales of export goods, foreign trade firms

China's commerce ministry will facilitate sales of export products in domestic market, as part of efforts to stabilize foreign trade amid slump in global trade.

In particular, domestic sales of goods in processing trade will be advanced to support the sector, which accounts for one-fourth of China's foreign trade and was hard-hit by supply and demand disruptions due to the novel coronavirus disease (COVID-19) pandemic, Li Xingqian, an official with the Ministry of Commerce, said on April 10.

Interests of the deferred tax for bonded materials or finished products in processing trade sold domestically will be temporarily waived from April to the end of this year, said Li.

To grant processing trade companies more leeway in lowering tax payment, the pilot program where firms pay duty for their domestic sales as either imported materials or finished goods will be extended to all of the 113 integrated bonded zones nationwide, according to Li.

Other measures to help foreign trade companies expand their businesses include smoothing logistics and deepening economic and trade cooperation with the rest of the world.

The World Trade Organization expects world trade to fall by between 13 percent and 32 percent in 2020 as the COVID-19 pandemic upsets normal economic activity and life.