China’s banks enhance financial support for foreign trade, ensuring growth amid potential risks

Multiple Chinese banks have moved to enhance financial support for the nation's foreign trade sector, further optimizing policy arrangements to extend China's foreign trade growth.

Bank of Communication's Shenzhen branch recently held a policy promotion event to provide comprehensive financial services for foreign trade enterprises aligning with the nation's call to stabilize foreign trade, according to a statement sent to the Global Times on Thursday.

Amid international trade headwinds such as exchange rate fluctuations, financing difficulties, long settlement cycles, and trade barriers, the bank introduced domestic and cross-border financing solutions to foreign trade enterprises to reduce their financing costs and improve their capital turnover efficiency, said the statement.

The Export-Import Bank of China (China EximBank) will support the construction of overseas parks, trade in intermediate goods, and the export of large complete sets of equipment, while promoting the development of services trade, digital trade, and green trade, said China EximBank on Thursday.

In January, loans for foreign trade issued by China EximBank totaled 180 billion yuan ($24.79 billion), up 11.79 percent year-on-year, said the bank.

On Wednesday, the Industrial and Commercial Bank of China unveiled several measures to better support new forms of foreign trade, including a special credit fund of 300 billion yuan. The bank pledged to offer innovative loan products and preferential interest rates by adapting to new business models, thereby assisting enterprises in expanding into global markets, state broadcaster CCTV News reported on Thursday.

Loans provide financial support to help businesses expand production, procurement and sales, while settlement services ensure the security and efficiency of transactions, reduce exchange rate risks, and enhance the international competitiveness of foreign trade enterprises, Chen Guibin, a representative of Guangdong-based Chaojie Silicon Rubber Products Co, told the Global Times on Thursday.

Concrete measures show that China is seeking more effective approaches to extend the nation's foreign trade growth into 2025.

According to data released by the General Administration of Customs on January 13, 2025, China's imports and exports grew by 5 percent year-on-year in 2024 to reach 43.85 trillion yuan, a new record high.

Amid an uncertain external environment in 2024, the steady growth showed that China's measures had an effect, Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Thursday.

"Policies such as encouraging foreign trade enterprises to explore more overseas emerging markets, along with the integration of supportive measures in sectors of finance, monetary and industry in the domestic market, supported the resilience of China's foreign trade sector," said Xi, noting that these factors will also play important roles in countering potential risks in 2025.

China's Ministry of Commerce (MOFCOM) on November 19, 2024, released a broader set of initiatives to support the stable growth of foreign trade, further consolidating and strengthening economic growth momentum.

According to a notice published by the MOFCOM, nine measures were specified to boost foreign trade, involving support and guidance in insurance, financing, and settlement; expanding the scope of imports and exports; optimization of the trade structure; visa facilitation; and transportation.

Chen said that support policies have played a crucial role in guiding and safeguarding the development of the nation's foreign trade enterprises, adding that these policies not only help enterprises cope with short-term market fluctuations but also enhance the sustainability of foreign trade by promoting long-term strategies such as digital transformation and green trade.