China’s Deputies brainstorm support for businesses – Global Times

The Global Times is reporting how Chinese Deputies to the ongoing National People’s Congress have suggested that the government work out more measures to help the country’s struggling export sector.

The article explained that there is the intention to assist hundreds of thousands of the small- and medium-sized businesses which have been seriously battered by the Covid-19 outbreak. 

The pandemic has elevated the pressure on operations by small- and medium-sized firms, said Yao Jinbo, founder and CEO of Chinese classifieds site 58.com.

Yao said there will not be any big problems with China’s job market, and the economy will get back on track so long as the development issues confronting its small businesses are dealt with properly. 

The article notes that during the annual National People’s Congress (NPC) session, Chinese Commerce Minister Zhong Shan said that stabilizing foreign trade and foreign investment is a matter of significance.

Foreign trade and foreign investment, an important driving force of economic growth, contributes to over 25 percent of the nation’s tax revenues and creates more than 200 million jobs, Zhong, an NPC deputy said. 

Chinese Premier Li Keqiang said in his government work report to the NPC that China will try to stabilize the overall performance of foreign trade, keep industrial and supply chains stable and continue to open the nation’s doors more widely to the world. 

Among efforts to help Chinese businesses get more orders and ensure employment are rising credit insurance coverage, lowering compliance costs for imports and exports, and support for export items to be sold domestically, per the government work report.

Also, members of the Chinese People’s Political Consultative Conference (CPPCC), the top political advisory body, have voiced suggestions aimed at energizing the export sector.

Market implications

There is a growing focus on the recovery of China as well as the geopolitical tensions. Hong Kong is a major risk for financial markets at this juncture as US says China’s HK national security law could lead to sanctions. AUD/JPY is a compelling chart on these themes to watch: Chart of The Week: AUD/JPY in a precarious position at daily support