On January 3, workers were busy making products to be exported to Russia at a workshop of a luggage company in Shaodong City. Last year, the company established R&D centers in some countries including Russia. Its products are sold to more than 60 countries and regions.

Foreign trade is an advantage of Shaodong's open economy. In 2022, Shaodong took the initiative to serve and integrate itself into the provincial strategy of developing Hunan into a hub of reform and opening up in inland regions. The city introduced supportive policies to help foreign trade enterprises tide over difficulties, expanded new markets, cultivated new forms of foreign trade, and boosted the development of these companies despite COVID-19.  

Shaodong has raised rewards for enterprises based on such conditions as their existing and increase of import and export volume. Enterprises are encouraged to purchase export credit insurance and offered with a 50% subsidy for their insurance contributions. A "white list" system is established for 136 foreign trade enterprises with integrity management and tax payment in accordance with the law. They are allowed to get access to the green channels of commerce, tax and finance authorities. A 100-day action is carried out to stabilize foreign trade and help 35 firms receive financing and renew loans of 437 million yuan.

Shaodong has publicized RCEP policies in industrial parks to improve enterprises' ability to comply with the rules of the RCEP agreement. A list of enterprises that trade with Africa was made, and fields visits were paid to 77 such companies to encourage them to expand exports. The city government instructed some companies in obtaining the authorized economic operator (AEO) status and supported the transformation and upgrading of businesses to enter European and American markets.

The city has vigorously developed cross-border e-commerce and introduced foreign trade integrated service platforms. More than 70 foreign trade enterprises started cross-border business via overseas platforms such as Alibaba and Amazon. Shaodong made an attempt on new patterns such as "coordinated development of Hunan Pilot Free Trade Zone (FTZ)", "overseas warehouses", and "enclave". Taking Shaodong Economic Development Zone as an applicant, the city has cooperated with Changsha Economic and Technological Development Zone to dovetail with the development strategy of Hunan Pilot FTZ coordinated area. Some Shaodong companies have established exhibition booths at Changsha Gaoqiao Market to carry out market procurement trade. Hunan Yitan Industrial Trade Co., Ltd. opened overseas warehouses in countries including Nigeria.

From January to October 2022, Shaodong had 171 new self-support foreign trade enterprises, with a cumulative import and export volume of 13.487 billion yuan, a year-on-year increase of 41.26%. Among them, exports were 13.047 billion yuan, a year-on-year increase of 38.44%.

This article is from the Hunan Provincial Government www.enghunan.gov.cn.

Translator: Xiao Juan

Chinese source: hunan.gov.cn