No.

Category

 Policy

Document Basis

1

Financial Subsidies

All crucial medical supplies for epidemic prevention and control should be purchased and reserved by the government. During the epidemic prevention and control, the item of reservation supplies should be added to the types of crucial medical protective supplies in the Product Catalogue, and the relevant departments of the State should, in accordance with the existing reservation systems and methods, purchase and reserve all surplus crucial medical protective supplies in the Product Catalogue produced by enterprises. All regions should arrange for enterprises to expand the production of crucial medical protective supplies as soon as possible, and strengthen quality management.

Circular of the National Development and Reform Commission, the Ministry of Finance and the Ministry of Industry and Information Technology on Playing Governments' Reservation Function to Support and Respond to the Production and Supply Increase of Scarce Supplies for the Epidemic

(Fa Gai Yun Xing [2020] No.184)

2

Tax Incentives

Imposing no additional tariffs on the United States and Canada. For supplies originating in the United States imported under the tariff exemption policy for the prevention and control of pneumonia caused by COVID-19, China imposes no additional tariffs on the United States and Canada. That is, China's performance of obligations to offer tariff concessions to the United States suspended under the 232 Action will be resumed, and China will not impose additional tariffs as a countermeasure against the Section 301 measures adopted by the United States; additional tariffs that have been imposed will be returned.

Circular on Imposing No Additional Tariffs on Imported Supplies Originating in the United States for the Prevention and Control of the COVID-19
 (Shui Wei Hui [2020] No.6)

3

Tax Incentives

Imported supplies are exempted from tax. Supplies that are imported as organized by health authorities for direct consumption in preventing and controlling the outbreak shall be exempted from import tariffs. Imported supplies shall conform to provisions in Item 1 of Article 1 above or the Interim Measures for Exemption of Customs Duties on Charitable Donations. The provincial finance departments (bureaus) in conjunction with provincial health authorities shall determine the list of importers and the list of imported supplies, and inform local customs directly under the GAC and provincial tax departments by letter.

Announcement on the Tax Exemption Policy for Imported Supplies for Prevention and Control of the COVID-19 (Announcement of the Ministry of Finance, the General Administration of Customs and the State Taxation Administration [2020] No.6)

4

Tax Incentives

Announcement on Relevant Tax Policies in Support of Prevention and Control of the COVID-19

(Announcement of the Ministry of Finance and the State Taxation Administration [2020] No.8)

5

Tax Incentives

The costs of the relevant equipment newly purchased for capacity expansion by enterprises that manufacture key supplies indispensable for prevention and control of the pneumonia outbreak could be counted, on a lump-sum basis, into the costs and expenses for the current period and are deductible before the calculation of enterprise income tax.

Announcement on Relevant Tax Policies in Support of Prevention and Control of the COVID-19

(Announcement of the Ministry of Finance and the State Taxation Administration [2020] No.8)

6

Tax Incentives

Enterprises that manufacture key supplies indispensable for prevention and control of the pneumonia outbreak may file applications with the competent tax authorities, on a monthly basis, for a refund of all incremental uncredited value-added tax (the term "incremental uncredited tax" refers to the period-end uncredited tax newly increased as compared with the end of December 2019).

Announcement on Relevant Tax Policies in Support of Prevention and Control of the COVID-19

(Announcement of the Ministry of Finance and the State Taxation Administration [2020] No.8)

7

Tax Incentives

The income obtained by taxpayers from transportation of key supplies indispensable for prevention and control of the pneumonia outbreak shall be exempt from value-added tax.

Announcement on Relevant Tax Policies in Support of Prevention and Control of the COVID-19

(Announcement of the Ministry of Finance and the State Taxation Administration [2020] No.8)

8

Tax Incentives

The losses incurred in 2020 by enterprises engaged in those industries getting into difficulty as a result of the epidemic may be carried forward for a period of up to eight years, instead of the previous five years. Such enterprises include enterprises engaged in transportation, catering, accommodation, and tourism (referring to travel agency and related services, and management of tourist attractions).

Announcement on Relevant Tax Policies in Support of Prevention and Control of the COVID-19

(Announcement of the Ministry of Finance and the State Taxation Administration [2020] No.8)

9

Tax Incentives

Putting off the tax declaration deadline in light of the need of preventing and controlling the epidemic situation. For taxpayers and withholding agents obligated to file tax returns on a monthly basis, the statutory deadline for tax declaration and payment for February 2020 shall be postponed to February 24 nationwide; on this basis, the deadline may be moderately postponed to a later date in Hubei Province and other regions most affected by the coronavirus, while the specific time shall be determined by the Hubei Provincial Tax Service, STA and reported to the STA for the record; and taxpayers and withholding agents that still have difficulty in tax declaration and payment by the postponed tax declaration deadline for February 2020, due to impacts of the pneumonia outbreak, may file applications for further delay in accordance with the law.

(Shui Zong Han [2020] No.19)

10

Reduction and exemption of social insurance contributions and employment support

Properly carrying out migrant workers' work resumption and the handover of reception at the place of arrival:
Relevant departments in the receiving areas shall, under the unified leadership of local people's governments, do a good job in the handover of reception after the special vehicles arrive. Departments of human resources and social security shall keep timely abreast of the reception of migrant workers by relevant enterprises and organizations into the factories. Enterprises should create personal health records for migrant workers returning to work, follow up their health status, and achieve full coverage to ensure that they can start work only when epidemic prevention requirements are met, and the body temperature is normal. Those who have no related symptoms within 14 days before the trip and during the trip should resume work as soon as possible. Those who have discomfort such as fever, fatigue and coughing should be immediately isolated and observed, and promptly sent for diagnosis.

Circular of the Ministry of Human Resources and Social Security, the Ministry of Public Security, the Ministry of Transport, the National Health Commission and China State Railway Group on Ensuring the "Point-to-Point" Service Guarantee for Migrant Workers' Return to Work

(Ren She Bu Ming Dian [2020] No.4)

11

Reduction and exemption of social insurance contributions and employment support

"Point-to-point" special vehicle (special train) transportation services for migrant workers:
For migrant workers who have existing jobs and who have newly determined jobs and are going to work in cities, organize the provision of "point-to-point" special vehicle (special train) transportation services for migrant workers in labor-intensive areas and concentrated enterprises to ensure the safe and orderly work resumption by migrant workers who go out in scale and in batch.

Circular of the Ministry of Human Resources and Social Security, the Ministry of Public Security, the Ministry of Transport, the National Health Commission and China State Railway Group on Ensuring the "Point-to-Point" Service Guarantee for Migrant Workers' Return to Work

(Ren She Bu Ming Dian [2020] No.4)

12

Reduction and exemption of social insurance contributions and employment support

Solidly promoting mutual recognition of migrant workers' health information:

The regions where local health codes or health certificates have been used should actively connect with the national health information platform and the national integrated government service platform to actively promote mutual recognition within and across provinces. The regions that have signed the inter-provincial health mutual recognition and cooperation memorandum should accelerate the implementation and gradually expand the scope of mutual recognition, to provide convenient conditions for the orderly flow of personnel across provinces. Except for the major regions requiring epidemic prevention and control and regions with high risks, different regions should reduce other conditions when arranging "point-to-point" trips of migrant workers returning for work resumption.

Circular of the General Office of the Ministry of Human Resources and Social Security and the General Office of the National Health Commission on Properly Providing the "Point-to-Point" Health Services during Travel of Migrant Workers Returning to Work

(Ren She Ting Ming Dian [2020] No.15)

13

Reduction and exemption of social insurance contributions and employment support

For enterprises temporarily unable to start or resume work during the epidemic prevention and control period, the change of the cycle for the capacity (demand) electricity pricing method and the time limit for capacity reduction (suspension) will be lax. Electricity users may apply for capacity reduction, suspension, resumption of reduced capacity, and suspension resumption on the current date. Users who apply for changes are not subject to conditions such as "suspension of electricity use shall not last for at least 15 days", and the users are exempted from charging tariffs for capacity (demand) of electricity or such tariffs may be reduced. For those enterprises that have suspended work or production since the outbreak, the exemption and reduction time can be appropriately retroacted.

Circular of the General Office of the National Development and Reform Commission on Adopting the Supportive Two-tier Electricity Pricing Policy to Reduce Enterprises' Electricity Costs during Epidemic Prevention and Control

(Fa Gai Ban Jia Ge [2020] No.110)

14

Reduction and exemption of social insurance contributions and employment support

Circular of the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration on Provisionally Reducing and Exempting the Social Insurance Contributions Borne by Enterprises

(Ren She Bu Fa [2020] No.11)

15

Reduction and exemption of social insurance contributions and employment support

Starting from February 2020, all provinces, autonomous regions, municipalities directly under the Central Government (excluding Hubei Province) and Xinjiang Production and Construction Corps (collectively the "provinces") may, in light of epidemic impact and fund affordability, exempt the part of contributions to three social insurance schemes borne by micro, small and medium-sized enterprises for a period of not more than five months; and where necessary, reduce the part of contributions to three social insurance schemes borne by other insured entities including large enterprises (excluding government authorities and public institutions) by half for a period of not more than three months.

Circular of the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration on Provisionally Reducing and Exempting the Social Insurance Contributions Borne by Enterprises

(Ren She Bu Fa [2020] No.11)

16

Reduction and exemption of social insurance contributions and employment support

Circular of the Ministry of Human Resources and Social Security, the Ministry of Finance and the State Taxation Administration on Provisionally Reducing and Exempting the Social Insurance Contributions Borne by Enterprises

(Ren She Bu Fa [2020] No.11)

17

Reduction and exemption of social insurance contributions and employment support

Circular of the Ministry of Human Resources and Social Security, the Ministry of Education, the Ministry of Finance, the Ministry of Transport and the National Health Commission on Ensuring Effective Work on Employment during the Period of Epidemic Prevention and Control

(Ren She Bu Ming Dian [2020] No.2)

18

Reduction and exemption of social insurance contributions and employment support

Allowing the postponement of business handling by enterprises and individuals who participate in the social insurance scheme. Applications filed by employers for postponing the registration of participation in social insurance scheme, payment of social insurance premiums and other businesses for their employees due to being affected by the epidemic shall be accepted without delay by social insurance agencies. The time limit for one-off backdated payment or regular payment of social insurance premiums by persons in flexible employment and urban and rural residents for 2020 may be extended. Failure to register the participation in social insurance scheme or pay social insurance premiums in a timely manner may be registered or paid after the epidemic, and the same will be identified in the system. Such postponement will not prejudice the personal benefit records of the insured, who shall go through the formalities within three months after clearance of the epidemic.

Circular of the General Office of the Ministry of Human Resources and Social Security on Ensuring Effective Work on Social Insurance during the Period for Prevention and Control of the COVID-19 Outbreak

(Ren She Ting Ming Dian [2020] No.7)

19

Reduction and exemption of social insurance contributions and employment support

In the event of production or business operation difficulties caused to them by the outbreak, enterprises may adopt wage adjustment, rotating schedules, reduction of working hours or other means as agreed upon with employees to stabilize employment and seek to avoid layoffs or minimize layoffs. Eligible enterprises may enjoy employment stabilization subsidies in accordance with provisions. If an enterprise suspends work and production within a wage payment cycle, the enterprise shall pay the employees' wages in accordance with the standards stipulated in the labor contract. Where the suspension is beyond a wage payment cycle, if an employee provides normal labor, the wage paid by the enterprise to the employee shall not be lower than the local minimum wage standard. If an employee does not provide normal labor, the enterprise shall pay living expenses. The living expense standards shall be implemented in accordance with the measures prescribed by different provinces, autonomous regions and municipalities directly under the Central Government.

Circular of the General Office of the Ministry of Human Resources and Social Security on Issues concerning Properly Handling Labor Relations during the Prevention and Control of the COVID-19 Outbreak

(Ren She Ting Ming Dian [2020] No.5)

20

Reduction and exemption of social insurance contributions and employment support

Circular of the Ministry of Housing and Urban-rural Development, the Ministry of Finance and the People's Bank of China on Implementing the Phased Supportive Policy on the Housing Fund to Properly Respond to the COVID-19

(Jian Jin [2020] No.23)

21

Reduction and exemption of social insurance contributions and employment support

In areas where the epidemic caused by COVID-19 is determined to be serious or relatively serious, enterprises may voluntarily make contributions to the housing fund by June 30, 2020, after sufficient consultation with the employees. Those who continue to make contributions shall independently determine the contribution ratios; if an enterprise suspends the contributions, the payment period during the suspension shall be calculated continuously without affecting the employees' normal withdrawal of and application for the housing fund.

Circular of the Ministry of Housing and Urban-rural Development, the Ministry of Finance and the People's Bank of China on Implementing the Phased Supportive Policy on the Housing Fund to Properly Respond to the COVID-19

(Jian Jin [2020] No.23)

22

Reduction and exemption of social insurance contributions and employment support

Starting from February 2020, all provinces, autonomous regions, municipalities directly under the Central Government, and Xinjiang Production and Construction Corps (collectively referred to as the "provinces") may, according to the operation status of the social insurance fund and the practical needs and on the premise of ensuring the medium- and long-term balance between revenues and expenditures of the social insurance fund, instruct regions under overall planning to halve the contributions to the EMI borne by enterprises for a period of up to five months.

Guiding Opinions of the National Healthcare Security Administration, the Ministry of Finance and the State Taxation Administration on Provisionally Reducing Employees' Basic Medical Insurance Contributions

(Yi Bao Fa [2020] No.6)

23

Reduction and exemption of social insurance contributions and employment support

In principle, in the region under overall planning where the cumulative balance of the fund is sufficient to cover payments for over six months, the contributions may be halved; but in regions where the reduction is truly necessary but the cumulative balance is only enough to cover payments for less than six months, the contributions cut shall be arranged upon the guidance of the province and overall consideration. In addition, the policy for payment deferment may continue to apply, and the deferment may last, in principle, for up to six months, during which no overdue fines will be charged.

Guiding Opinions of the National Healthcare Security Administration, the Ministry of Finance and the State Taxation Administration on Provisionally Reducing Employees' Basic Medical Insurance Contributions

(Yi Bao Fa [2020] No.6)

24

Financial support

Establishing a special scheme that provides relending funds of RMB300 billion.
Provide low-cost lending funds for national banks and certain local incorporated banks in the most-afflicted provinces like Hubei, supporting these banks in granting loans with preferential interest rates to key enterprises engaged in the production, transportation and sales of crucial medical supplies and daily necessities. The use of funds is managed under an enterprise-list approach. Comprehensive low-cost loan interest rates and the Ministry of Finance's interest discounts ensure that the actual financing costs of key enterprises fall to below 1.6%.

25

Financial support

Offering RMB500 billion of special relending and rediscount quotas.
In addition to RMB300 billion of special relending for epidemic prevention and control established at the early stage, offer RMB500 billion of special relending and rediscount quotas while reducing the refinancing interest rate for the agricultural sector and small- and medium-sized enterprises by 0.25 percentage points to 2.5%. The relending and rediscount funds should be allocated to key fields, industries and areas. In addition to the existing fields, such funds should provide priority support for work and production resumption, poverty alleviation, spring farming, poultry and livestock breeding and foreign trade, and enhance support for industries of tourism and entertainment, accommodation and catering, and transportation that have been greatly affected by the epidemic as well as virus-hit areas.

26

Financial support

Offering RMB350 billion of special credit lines for policy banks.
Policy banks will be offered RMB350 billion of special credit lines to grant loans to private enterprises and micro, small and medium-sized enterprises at preferential interest rates.

27

Financial support

Simplifying and Facilitating the Handling of Corporate Bonds-Related Businesses during the Period of Epidemic Prevention and Control to the Maximum Extent
Setting up a "green channel" for application. Enterprises being greatly affected by the epidemic and key enterprises providing supplies for epidemic prevention and control that intend to apply for new corporate bonds may directly submit the application materials to the National Development and Reform Commission (the "NDRC"), and the NDRC will implement "immediate review for approval upon application", arrange special personnel for coordination, conduct special review, and handle the applications as per "accelerated and simplified" bond review procedures.
Implementing off-site business handling. We shall, fully support intermediaries including issuers and lead underwriters to handle off the site such businesses as application for issuance of corporate bonds, feedback, collection of approval documents, information disclosure, pre-issuance filing and upon flexible choice, submit materials by means of online system, fax, email, mail, etc. to the NDRC's government affairs service hall, and provide or collect supplementary paper materials after the end of the epidemic.
Properly extending the validity period of approval documents. In terms of corporate bond approval documents that expire between February 2020 and June 2020, the validity period thereof shall be automatically extended to June 30, 2020 in a unified manner, and relevant issuers shall be exempted from the application procedure for such extension.
Optimizing the management of the issuance link. First, whoever has recently been approved but not yet received the corporate bond approval document may fully disclose in the issuance materials whether any significant post-event matter occurs and the effects thereof if any, and then launch the issuance on the strength of the electronic approval document disclosed as the NDRC's government affairs information. Second, issuers intending to start bond issuance work in the near future shall contact China Central Depository & Clearing Co., Ltd. in advance, be encouraged to avoid peak hour when making appointments for book building so as to minimize the number of personnel in presence for issuance. Third, whoever has already launched the bond issuance procedure but fails to complete the issuance within the validity period of issuance due to being affected by the epidemic may apply for a relaxation of the bond issuance time limit as appropriate, or the issuer may, based on flexible choice, make a selective issuance after performing the procedures in accordance with pertinent regulations.

Circular of the General Office of the National Development and Reform Commission on Effectively Carrying out the Work Relating to Corporate Bonds during the Period of Epidemic Prevention and Control

(Fa Gai Ban Cai Jin [2020] No.111)

28

Financial support

Providing interest subsidies for loans granted to enterprises under key protection for epidemic prevention and control.
Based on the fact that the People's Bank of China extends special re-lending to financial institutions, enabling them to grant loans at preferential rates, the Central Government will, for new loans granted in 2020 to enterprises under key protection for epidemic prevention and control, offer interest subsidies at 50% of the interest rate of the People's Bank of China's re-lending for a period of no more than one year. Such subsidies will be appropriated from special funds for inclusive financial development.

Circular of the Ministry of Finance on Supporting the Financial Sector in Improving Services to Assist with the Work on Prevention and Control of the COVID-19 Outbreak

(Cai Jin [2020] No.3)

29

Financial support

Taking a Combination of Measures to Support Bond Financing Demands in Epidemic Regions and of Enterprises Engaged in Epidemic Prevention and Control
We shall, support the use of funds raised by means of corporate bonds for medical services, key scientific research, manufacturing of pharmaceutical products relating to epidemic prevention and control, as well as the construction of infrastructure for epidemic prevention and control; based on proper debt repayment guarantee measures, where necessary, relax the coverage requirements on the return of such projects as appropriate; in the application stage, support the use of corporate bond funds for the construction of such projects in the preliminary stage, provided that the latest information on legality and compliance of the projects is disclosed fully and in detail.
We shall allow the use of funds raised by means of corporate bonds for repaying or replacing project loans generated in the preliminary stage due to epidemic prevention and control.
We shall, encourage enterprises with good credit to issue the credit enhancement collective bonds for small- and micro-sized enterprises and provide liquidity support for small-, medium- and micro-sized enterprises being affected by the epidemic; allow bond issuers to use no more than 40% of their bond funds for replenishing working capital, and meanwhile, relax the requirement on the concentration of entrusted loans, i.e. "the cumulative balance of entrusted loan funds issued to single entrusted loan objects shall not exceed CNY50 million and 10% of the total amount of funds raised by means of small- and micro-sized enterprise bonds."
We shall, allow enterprises with high-quality self-owned assets and well-run fund raising and investment projects but being severely affected by the epidemic to apply for issuing new corporate bonds specifically for repaying the principal and interest of corporate bonds due within 2020.

Circular of the General Office of the National Development and Reform Commission on Effectively Carrying out the Work Relating to Corporate Bonds during the Period of Epidemic Prevention and Control

(Fa Gai Ban Cai Jin [2020] No.111)

30

Financial support

Supporting enterprises' cross-border financing for epidemic prevention and control.
Where an enterprise handles the foreign exchange settlement and payment of capital items related incomes in connection with epidemic prevention and control, it is not required to submit certificates and documents in advance case by case, and banks shall strengthen the follow-up spot check of the authenticity in terms of the enterprise's use of funds. Where it is truly necessary for epidemic prevention and control, the limit for enterprises to borrow foreign debts, etc., may be lifted and an online application may be filed for foreign debt registration via the Online Handling System for the Government Services Provided by the State Administration of Foreign Exchange (Website: http://zwfw.safe.gov.cn/asone/), thus facilitating enterprises to conduct cross-border financing.

Circular of the State Administration of Foreign Exchange on Establishing Green Channels of Foreign Exchange Policies to Support the Prevention and Control of the COVID-19 Epidemic

(Hui Zong Fa [2020] No.2)

31

Financial support

Supporting the demands of individuals and enterprises for rational use of foreign exchange.
Banks shall pay close attention to foreign exchange needs of individuals and encourage them to handle individual foreign exchange business through online channels such as mobile banking. With respect to other special foreign exchange business in relation to epidemic prevention and control, banks may handle them first, and report to local branches of the SAFE for record-filing.

Circular of the State Administration of Foreign Exchange on Establishing Green Channels of Foreign Exchange Policies to Support the Prevention and Control of the COVID-19 Epidemic

(Hui Zong Fa [2020] No.2)

32

Financial support

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

33

Financial support

Accelerating the implementation of credit support policies.
Include key producers of feed, breeding livestock, poultry and seeds (seedlings), slaughtering, dairy, and products under the "shopping basket program" related to the key supplies for epidemic prevention and control in the coverage of such national supporting policies including special re-lending and interest discount, strictly implement the management based on a list system, organize bank-enterprise connection, effectively refine specific measures, make use of the funds for special re-lending and interest discount as soon as possible, and ensure special funds for a special purpose.

34

Financial support

Appropriately relaxing the time limit for handling relevant business on the capital market.
It is required to, appropriately extend the validity period of the financial information on administrative licensing for merger and reorganization of a listed company and the time limit for issuing a notice of convening shareholders' general meeting after the disclosure of a reorganization plan. Where it is truly impossible to update the financial information on schedule or to issue a notice of shareholders' general meeting due to the impact of the epidemic, relevant company may apply for an extension of the validity period of the financial information or a deferral of the time for the notice of shareholders' general meeting for one month up to three times after fully disclosing the specific impact of the epidemic on the reorganization. During the epidemic period, the time limit for replying to stock issuers' feedback, that for replying to letters of notification, that for termination of financial reports upon expiration, and the validity period of refinancing approval documents granted upon verification shall be temporarily suspended from the issuance date of this Circular. Whoever has obtained a bond issuance license but fails to complete the issuance within the validity period of the licensing due to the impact of the epidemic may apply to the CSRC for a deferred issuance.

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

35

Financial support

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

36

Financial support

Providing differentiated and preferential financial services for regions, industries and enterprises being greatly affected by the epidemic.
No loan may be withdrawn, cancelled or withheld blindly for industries of wholesale and retail, accommodation and catering, logistics and transportation as well as culture and tourism, etc., being greatly affected by the epidemic, as well as enterprises having development prospects but facing difficulties temporarily due to the impact of the epidemic, especially small and micro enterprises ("SMEs"). Where an enterprise being severely affected by the epidemic faces has difficulty in making the repayment when due, relevant loan term may be extended or renewed. It is required to, support relevant enterprises to overcome the impacts of the epidemic disaster through such methods as appropriately lowering loan interest rates, increasing credit loans and medium- and long-term loans.

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

37

Financial support

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

38

Financial support

Supporting development-oriented and policy banks to intensify the efforts in credit support.
China Development Bank, Export-Import Bank and Agricultural Development Bank shall, in light of their own business scopes, strengthen overall coordination, rationally adjust credit arrangement, and intensify the efforts in funding support for the production, research and development as well as medical supply import and procurement of anti-epidemic agencies and enterprises facing difficulties in market-oriented financing, and for the production, transport and sales of important daily necessities supply enterprises, thus reasonably satisfying the demands for epidemic prevention and control.

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

39

Financial support

The National Development and Reform Commission and the Ministry of Industry and Information Technology shall implement list-based management of the key enterprises guaranteeing supplies for epidemic prevention and control.
The People's Bank of China shall issue special re-loans to relevant national banks and local corporate banks in key regions for epidemic prevention and control, and support them to provide preferential loans for enterprises on the lists. On top of the credit support with preferential interest rate provided by financial institutions with the support of special re-loans from the People's Bank of China, the central finance shall offer interest subsidies at 50% of the loan interest rate actually obtained by enterprises. The term of interest discounts shall not exceed one year.

Urgent Circular of the Ministry of Finance, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the People's Bank of China and the National Audit Office on Increasing Capital Support for Key Enterprises Guaranteeing Supplies for Epidemic Prevention and Control to Win the Battle against the Epidemic

(Cai Jin [2020] No.5)

40

Financial support

Meeting the demand.
Banking financial institutions shall actively meet enterprises' demand for postponement of principal and interest payments, and activate multiple offline channels and online channels (online banking, mobile banking and telephone banking) to facilitate enterprises' applications for postponement of principal and interest payments. Enterprises' applications shall be accepted in a timely manner and replied to within a time limit.

(Yin Bao Jian Fa [2020] No.6)

41

Financial support

Intensifying the efforts in credit support for fields in relation to epidemic prevention and control.
During the epidemic prevention and control period, the PBC shall, in collaboration with the National Development and Reform Commission and the Ministry of Industry and Information Technology, carry out list-based management of backbone enterprises that produce, transport and sell such important medical supplies as medical protective gowns, medical masks, medical goggles, COVID-19 test kits, negative pressure ambulances, disinfection machines, 84 liquid disinfectant, infrared thermometers and relevant drugs as well as important daily necessities. The PBC shall provide low-cost funds for financial institutions through special re-lending, and support financial institutions to offer credit support at preferential interest rates for enterprises included in the list. The central finance shall provide interest discount support for key enterprises providing supplies for epidemic prevention and control. Financial institutions shall, take the initiative to strengthen the service docking with relevant hospitals, medical research institutions and relevant enterprises, provide sufficient credit resources, and endeavor to satisfy the demands of relevant units and enterprises for reasonable financing in terms of manufacturing and procurement of sanitary, anti-epidemic and medical supplies, construction of public health infrastructure, scientific research towards key technological breakthroughs and technical innovation.

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

42

Financial support

Providing differentiated and preferential financial services for regions, industries and enterprises being greatly affected by the epidemic.
Financial institutions shall improve their financial supply capacity for regions being severely affected by the epidemic through taking such measures as adjusting regional financing policies, internal fund transfer pricing and implementing differentiated performance appraisal methods. No loan may be withdrawn, cancelled or withheld blindly for industries of wholesale and retail, accommodation and catering, logistics and transportation as well as culture and tourism, etc., being greatly affected by the epidemic, as well as enterprises having development prospects but facing difficulties temporarily due to the impact of the epidemic, especially small and micro enterprises ("SMEs"). Where an enterprise being severely affected by the epidemic faces has difficulty in making the repayment when due, relevant loan term may be extended or renewed. It is required to, support relevant enterprises to overcome the impacts of the epidemic disaster through such methods as appropriately lowering loan interest rates, increasing credit loans and medium- and long-term loans. Government financing guarantee and re-guarantee institutions at all levels shall cancel counter-guarantee requirements and reduce guarantee and re-guarantee fees. The National Financing Guarantee Fund shall halve the re-guarantee fees charged from financing guarantee and re-guarantee institutions in regions being severely affected by the epidemic.

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

43

Financial support

Appropriately relaxing the time limit for handling relevant business on the capital market.
It is required to, appropriately extend the validity period of the financial information on administrative licensing for merger and reorganization of a listed company and the time limit for issuing a notice of convening shareholders' general meeting after the disclosure of a reorganization plan. Where it is truly impossible to update the financial information on schedule or to issue a notice of shareholders' general meeting due to the impact of the epidemic, relevant company may apply for an extension of the validity period of the financial information or a deferral of the time for the notice of shareholders' general meeting for one month up to three times after fully disclosing the specific impact of the epidemic on the reorganization. During the epidemic period, the time limit for replying to stock issuers' feedback, that for replying to letters of notification, that for termination of financial reports upon expiration, and the validity period of refinancing approval documents granted upon verification shall be temporarily suspended from the issuance date of this Circular. Whoever has obtained a bond issuance license but fails to complete the issuance within the validity period of the licensing due to the impact of the epidemic may apply to the CSRC for a deferred issuance.

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

44

Financial support

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

45

Financial support

Supporting the demands of individuals and enterprises for rational use of foreign exchange.
Banks shall pay close attention to foreign exchange needs of individuals and encourage them to handle individual foreign exchange business through online channels such as mobile banking. With respect to other special foreign exchange and RMB cross-border businesses in relation to epidemic prevention and control, banks may handle them first and conduct check thereof afterwards, and report to local branches of the SAFE and of the PBC respectively for record-filing.

Circular of the People's Bank of China, the Ministry of Finance, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange on Further Solidifying Financial Support for Prevention and Control of the COVID-19

(Yin Fa [2020] No.29)

46

Reduction of the production and operation costs of enterprises (reduction and exemption of rents, consumption costs of water, electricity and natural gas, as well as administrative and institutional fees)

Capacity (demand) power charges:
For enterprises temporarily unable to start or resume work during the epidemic prevention and control, the restrictions on the alteration circle for the charging mode of capacity (demand) power price and on the time limit for capacity reduction (suspension) will be relaxed. Power users may apply for capacity reduction, suspension, as well as resumption of capacity reduction or suspension as of this date. Users who apply for the said alteration will not be subject to restrictions such as "suspension of power consumption for a period of not less than 15 days", and may be subject to reduction or exemption of capacity (demand) power charges. For those enterprises that have stopped work or production since the epidemic, the reduction or exemption period may be appropriately extended on a retrospective basis.。

Circular of the General Office of the National Development and Reform Commission on Adopting a Supportive Two-part Tariff Policy During Epidemic Prevention and Control to Reduce Enterprises' Power Consumption Costs

(Fa Gai Ban Jia Ge [2020] No.110)

47

Reduction of the production and operation costs of enterprises (reduction and exemption of rents, consumption costs of water, electricity and natural gas, as well as administrative and institutional fees)

Circular of the General Office of the National Development and Reform Commission on Adopting the Supportive Two-part Tariff Policy during Epidemic Prevention and Control to Reduce Enterprises' Power Consumption Costs

(Fa Gai Ban Jia Ge [2020] No.110)

48

Reduction of the production and operation costs of enterprises (reduction and exemption of rents, consumption costs of water, electricity and natural gas, as well as administrative and institutional fees)

The gate station price of natural gas for non-residential use will be subject to the off-season natural gas price policy in advance.
Natural gas producers and operators shall implement the off-season natural gas price policy in advance. As of the date of promulgation of the Circular, for natural gas for non-residential use subject to a government-determined price, its price shall be appropriately reduced to the largest extent based on the gate station benchmark price. For natural gas for non-residential use not subject to a government-determined price, natural gas producers and operators are encouraged to fully negotiate and communicate with downstream natural gas users depending on the market conditions to reduce the price.
The above measure will be subject to an expiry date of June 30, 2020.

Circular of the National Development and Reform Commission on Provisionally Reducing the Consumption Costs of Natural Gas Used for Non-residential Purposes to Support the Resumption of Work and Production by Enterprises

(Fai Gai Jia Ge [2020] No.257)

49

Reduction of the production and operation costs of enterprises (reduction and exemption of rents, consumption costs of water, electricity and natural gas, as well as administrative and institutional fees)

Timely reducing the terminal consumption price of natural gas.
Local competent departments of price shall attach great importance to relevant work and make every effort to complete the job, reduce the terminal consumption price of natural gas for non-residential use in a timely manner according to the price reductions of upstream enterprises, and effectively make the terminal users are entitled to the reduced gate station price. They shall also strengthen follow-up investigations and timely identify and resolve specific problems in policy implementation to ensure smooth implementation. And they are encouraged to further reduce the terminal consumption price of natural gas and release more price reduction dividends by such methods as reinforcing the pipeline transportation as well as the supervision of gas distribution prices in their respective provinces.
The above measure will be subject to an expiry date of June 30, 2020.

Circular of the National Development and Reform Commission on Provisionally Reducing the Consumption Costs of Natural Gas Used for Non-residential Purposes to Support the Resumption of Work and Production by Enterprises

(Fai Gai Jia Ge [2020] No.257)

50

Reduction of the production and operation costs of enterprises (reduction and exemption of rents, consumption costs of water, electricity and natural gas, as well as administrative and institutional fees)

From February 1, 2020 to June 30, 2020, when calculating and collecting the power charges of the above-mentioned power users (power users who are currently subject to the power price for general industry and commerce and other industries as well as the power price for the great industry, excluding users in high-energy-consuming industries; including users participating in the market trading), a discount of 95% shall be given to the settlement of the original power price to household by power grid enterprises on a uniform basis.

Circular of the National Development and Reform Commission on Provisionally Reducing the Power Consumption Costs for Enterprises to Support Their Resumption of Work and Production

(Fai Gai Jia Ge [2020] No.258)

51

Reduction of the production and operation costs of enterprises (reduction and exemption of rents, consumption costs of water, electricity and natural gas, as well as administrative and institutional fees)

The Circular of the General Office of the National Development and Reform Commission on Adopting the Supportive Two-part Tariff Policy during Epidemic Prevention and Control to Reduce Enterprises' Power Consumption Costs (Fa Gai Ban Jia Ge [2020] No.110) will be further implemented until June 30, 2020 on a specific basis.

Circular of the National Development and Reform Commission on Provisionally Reducing the Power Consumption Costs for Enterprises to Support Their Resumption of Work and Production

(Fai Gai Jia Ge [2020] No.258)

52

Reduction of the production and operation costs of enterprises (reduction and exemption of rents, consumption costs of water, electricity and natural gas, as well as administrative and institutional fees)

Announcement of the Ministry of Finance and the National Development and Reform Commission on Exempting Some Administrative and Institutional Fees and Government Funds during the Period of Prevention and Control of the COVID-19

(Fai Gai Jia Ge [2020] No.258)

53

Reduction of the production and operation costs of enterprises (reduction and exemption of rents, consumption costs of water, electricity and natural gas, as well as administrative and institutional fees)

(Fa Gai Jia Ge [2020]No.291)                            

54

Support for foreign economic and trade development

Improving the position and using short-term insurance as a powerful starting point for responding to the impact of the epidemic and stabilizing foreign trade:
Local competent departments of commerce and Sinosure's operating agencies in various localities shall further improve their political standing, fully understand the complex and severe situation and challenges faced by foreign trade stabilization at present, give full play to the positive effect of short-term insurance on stabilization of foreign trade and expectations, and take short-term insurance as a powerful starting point for reducing the impact of the epidemic on foreign trade enterprises to help foreign trade enterprises stabilize their confidence and enhance their ability to resist risks. Local competent departments of commerce shall guide enterprises in making full and good use of all supporting policies for export credit insurance to create good conditions for Sinosure's short-term insurance business. Sinosure's operating agencies in various localities shall effectively play the role of policy-based financial institutions, further expand the coverage of short-term insurance, make an overall plan for resource allocation, offer targeted professional services, improve underwriting efficiency, and innovate underwriting models, so as to help enterprises strengthen export risk management and reduce their losses.

(Fa Gai Jia Ge [2020] No.291)                

55

Support for foreign economic and trade development

Strengthening policy guidance on export credit insurance:
Local competent departments of commerce shall coordinate efforts in epidemic prevention and control and business development, raise the attention to and enhance the policy guidance on enterprises affected by the epidemic, and issue supporting policies in light of their actual local conditions to coordinate and solve the major demands of foreign trade enterprises and help them overcome the difficulties. Sinosure's operating agencies in various localities shall specify work plans and safeguard measures, establish a rapid response mechanism for the needs of enterprises affected by the epidemic and actively provide more powerful risk protection for them, and provide key support services for enterprises that are seriously affected by the epidemic, so as to make insurance cover all that shall be covered; collect and study the needs of enterprises to insure additional insurance before shipping, and strengthen the protection of risks such as cancellation of orders; open green channels for claim settlement services, appropriately relax the requirements for claim settlement, and make sure that all indemnifiable claims are settled and settlement is made as soon as possible on the premise of real trade situations and accurate amount of claims.

(Shang Cai Han [2020]No.50)                            

56

Support for foreign economic and trade development

Intensifying financing support for export credit insurance of foreign trade enterprises:
Local competent departments of commerce shall, in concert with local competent departments of finance, actively guide financial institutions to implement the Guiding Opinions of the China Banking and Insurance Regulatory Commission, the Ministry of Commerce and the State Administration of Foreign Exchange on Improving Foreign Trade Related Financial Services (Yin Bao Jian Fa [2019] No.49) and further strengthen and improve foreign trade related financial services; give play to the guiding role of financial funds, improve the cooperation mechanism among the government, banks and credit insurance agencies, fully mobilize social resources, and expand the scale of policy financing. Sinosure's operating agencies in various localities shall further deepen cooperation with banks, strengthen business exchanges and information communication, give full play to their advantages in such fields as credit investigations and country risk studies, actively provide banks with customers' trade records and default-related information, improve banks enthusiasm in expanding the scale of policy financing, and promote the credit insurance for loans and other cooperation modes between banks and insurance agencies to ease the financial pressure on foreign trade enterprises.

Circular of the Ministry of Commerce and the China Export & Credit Insurance Corporation on Improving Work relating to Short-term Export Credit Insurance in 2020 to Fully Support Foreign Trade Enterprises to Respond to the Impact of the COVID-19 Epidemic

 (Shang Cai Han [2020] No.50)

57

Support for foreign economic and trade development

Actively assisting foreign-invested enterprises in resuming normal production and operations in an orderly manner:
On the premise of ensuring effective epidemic prevention and control, and according to the unified arrangements made by local governments, competent departments of commerce shall assist with various preparations for resumption of work and provide foreign-invested enterprises with strong support for their imminent resumption of work in an orderly manner. Foreign-invested enterprises engaged in production of medical protective clothing, respirators, goggles and other protective supplies shall be arranged for, under unified arrangements for urgent circumstances, to resume production as quickly as possible at full capacity to meet the demands. Competent departments of commerce shall also assist enterprises in purchasing necessary protective supplies, provide them with guidance on preparing work plans in response to the epidemic and ensuring the full implementation of various internal prevention and control measures, according to their own actual situations, deeply understand the employment needs of enterprises, make full use of network platforms and other methods to promote the connection of labor supply and demand, reinforce the employment guarantee for enterprises to resume production, coordinate the resolution of difficulties facing foreign-invested enterprises in resuming production, properly deal with complaints lodged by foreign-invested enterprises, and sincerely care about the lives of foreign employees working in China and the lives of their families, and assist them in epidemic prevention.

Circular of the General Office of the Ministry of Commerce on Improving Services for Foreign-invested Enterprises and Strengthening the Attraction of Investment to Actively Respond to the COVID-19 Epidemic

58

Support for foreign economic and trade development

In order to resolutely carry out decisions and deployments of the Central Committee of the Communist Party of China and the State Council, actively respond to the epidemic and help enterprises maintain legitimate rights and interests and minimize economic losses, the Ministry of Commerce guides six chambers of commerce of textile, light industry, metals, minerals and chemicals, foodstuffs, native produce and animal by-products, machinery and electronic products and medicines and health products to make utmost efforts to issue force majeure certifications, legal consulting, exhibition coordination, supply-demand connection and other relevant services.
I. Each chamber of commerce will assist enterprises with a demand, and freely issue a force majeure certification on failure in contract performance and the delivery of goods on time for the epidemic;
II. Each chamber of commerce will, in view of relevant trade restriction measures triggered by the epidemic, provide enterprises with necessary legal and information services;
III. Each chamber of commerce will coordinate with domestic and overseas exhibition organizers, and help enterprises unable to join exhibitions overseas due to the epidemic to deal with problems about paid expenses and so on; and
IV. All chambers of commerce shall strengthen the communication and contact with enterprises and local governments, share the information on relevant products and services in time, and build a bridge for supply-demand connection.
Competent departments of commerce of all places shall unify thoughts, enhance stance, fully recognize the importance of helping foreign trade enterprises with the response to the epidemic, act positively, and endeavor to exclude difficulties and anxiety for enterprises, and responsively report relevant problems. The Ministry of Commerce will resolutely carry out decisions and deployments made by the Central Committee of the Communist Party of China and the State Council, work and respond to the challenge together with competent departments of commerce, chambers of commerce of import and export and foreign trade enterprises of all places, firmly win the fight against the prevention and control of the epidemic, and endeavor to stabilize foreign trade.

59

Support for foreign economic and trade development

Provide targeted assistance according to actual situations:
Competent departments of commerce shall strengthen communication and coordination with local administrations for market regulation, and effectively implement an information reporting system for foreign investment, and ensure that information reporting is timely, truthful, accurate and complete; optimize and strengthen foreign investment statistics; make full use of information-based methods, enhance research, judgment and early warning, and grasp the impact of the epidemic on foreign enterprises in various industries and fields in a timely manner; reinforce the communication mechanism with local associations of enterprises with foreign investment and foreign chambers of commerce, and timely understand the production and operations as well as investment trends of member enterprises, so as to provide targeted services and guidance; focus on the different impacts of the epidemic on various types of foreign-invested enterprises, take measures on a classified basis following the principle of one policy for one enterprise, and take measures for targeted assistance in concert with relevant departments, so as to help enterprises overcome difficulties.

60

Support for foreign economic and trade development

Provide targeted assistance according to actual situations:
Competent departments of commerce shall strengthen communication and coordination with local administrations for market regulation, and effectively implement an information reporting system for foreign investment, and ensure that information reporting is timely, truthful, accurate and complete; optimize and strengthen foreign investment statistics; make full use of information-based methods, enhance research, judgment and early warning, and grasp the impact of the epidemic on foreign enterprises in various industries and fields in a timely manner; reinforce the communication mechanism with local associations of enterprises with foreign investment and foreign chambers of commerce, and timely understand the production and operations as well as investment trends of member enterprises, so as to provide targeted services and guidance; focus on the different impacts of the epidemic on various types of foreign-invested enterprises, take measures on a classified basis following the principle of one policy for one enterprise, and take measures for targeted assistance in concert with relevant departments, so as to help enterprises overcome difficulties.

61

Support for foreign economic and trade development

Innovate and optimize the ways to attract and introduce investment:
In response to the existing difficulties such as the obstruction in transfer of people, competent departments of commerce shall leverage the advantages of Internet platforms, integrate various resources to attract investment, and actively promote online investment attraction through such methods as online negotiations, video conferences and online signing of agreements, so as to boost investment promotion and attraction on a continuous basis. further improve the reserved project library for attracting and introducing investment, screen and select a batch of attractive projects with development potential for online release, and connect with foreign investors in the early-stage; make full use of the national and local overseas investment promotion agencies as platforms to enhance the publicity and introduction of investment environment and cooperation projects; strengthen cooperation with various overseas trade associations and other intermediary organizations, actively carry out entrusted investment attraction and rely on business to obtain investment, and organize flexible and diversified investment attraction activities, so as to achieve the conclusion and implementation of a batch of new projects.

62

Support for foreign economic and trade development

Guide and encourage enterprises to apply for an import and export license in a paperless way:
All relevant entities shall carefully implement the Announcement of the Ministry of Commerce and the General Administration of Customs, P.R.China [2018] No.82 (publishing relevant matters of application for goods import license and the paperless operation of customs declaration) and the Announcement of the Ministry of Commerce and the General Administration of Customs, P.R.China [2019] No.64 (publishing relevant matters of the application for export license and the customs declaration of proper goods in a paperless way), intensify publicity and guidance, and actively guide and encourage to apply for the export license in a paperless way.

Circular of the General Office of the Ministry of Commerce on Practically Doing the Work for Further Facilitating Enterprises in Applying for Import and Export Licenses during the Epidemic Prevention and Control 

63

Support for foreign economic and trade development

Further simplify materials necessary for the paperless application for import and export licenses:
In order to further facilitate enterprises in applying for import and export licenses in a paperless way, concerning import and export contracts with many contents and a large text size, enterprises may be only required to upload key pages of the contracts, i.e. those about contents such as both parties of trading related to the application for import and export license, traded commodities, quantity, unit price, amount, settlement and transportation.

Circular of the General Office of the Ministry of Commerce on Practically Doing the Work for Further Facilitating Enterprises in Applying for Import and Export Licenses during the Epidemic Prevention and Control

64

Support for foreign economic and trade development

Constantly optimizing business environment:
With the full implementation of regulations and policies such as the Foreign Investment Law and its implementing regulations as well as the Opinions of the State Council on Further Improving the Use of Foreign Capital (Guo Fa [2019] No.23), competent departments of commerce shall strengthen publicity and interpretation of these regulations and policies, and try to create a more stable, fair, transparent, and predictable investment environment; sort out the various policies to help enterprises stabilize their jobs recently introduced by the central and local governments, and guide foreign-invested enterprises to make good and full use of various policies for assistance and poverty relief in such fields as finance, taxation, social insurance, employment and government procurement, so as to treat domestic and foreign-invested enterprises equally without discrimination and minimize the impact of the epidemic. All local competent departments of commerce shall also prepare and publish guidelines for foreign investment as soon as possible, and publish such information as service guidelines, project information and relevant data information, to provide services and convenience for foreign investment and constantly optimize the business environment.

Circular of the General Office of the Ministry of Commerce on Improving Services for Foreign-invested Enterprises and Strengthening the Attraction of Investment to Actively Respond to the COVID-19 Epidemic

65

Support for foreign economic and trade development

Further optimize the application and update processes of electronic keys
Encourage enterprises to apply for and update electronic keys online (no matter whether certifications have been expired or not) through the "Apply for registration of import and export enterprises of electronic certification and electronic key system" (http://careg.ec.com.cn). Local competent departments of commerce shall conduct online review in time, and release certifications at the first time after the review is passed. Encourage local competent departments of commerce to provide mailing services for enterprises applying for and updating their electronic keys.
Log on the website of the Bureau of Quota License of the Ministry of Commerce (the "License Bureau") (http://www.licence.org.cn) for inquiry about concrete operation guidelines for the online application for and update of electronic keys by enterprises.

Circular of the General Office of the Ministry of Commerce on Practically Doing the Work for Further Facilitating Enterprises in Applying for Import and Export Licenses during the Epidemic Prevention and Control

66

Support for foreign economic and trade development

Forwarding and issue of import and export licenses
If relevant entity cannot promptly forward an application for import and export licenses or issue import and export licenses due to the epidemic, it may apply to the License Bureau for forwarding or issue. The License Bureau shall handle that immediately after receiving the application, register cases one by one, and feed back relevant forwarding and issue information in a timely way.

Circular of the General Office of the Ministry of Commerce on Practically Doing the Work for Further Facilitating Enterprises in Applying for Import and Export Licenses during the Epidemic Prevention and Control

67

Support for foreign economic and trade development

Further expand the scope of encouraged foreign investments. Recently, the National Development and Reform Commission, in conjunction with departments such as the Ministry of Commerce, has revised the Catalog of Industries for Encouraged Foreign Investment. The revision further expands the scope of encouragement, emphasizes increment promotion and inventory stability, focus on the promotion of high-quality development of manufacturing industry, and give play to the potential of the central, western and northeastern regions for undertaking industry transfer. Provincial development and reform commissions shall, in combination with local actual conditions and according to investment attraction conditions, appeals of foreign-funded projects and foreign-funded enterprises and industrial development direction, give suggestions on items needed to be added into the Catalog of Industries for Encouraged Foreign Investment together upon relevant departments of commerce, etc. upon study the soonest possible, and submit them to the National Development and Reform Commission before March 17.

Circular of the National Development and Reform Commission on Further Deepening Reform and Ensuring Effective Work on Foreign-invested Projects in Response to the Epidemic

(Fa Gai Wai Zi [2020] No.343)

68

Support for foreign economic and trade development

Boost enterprises in the foreign trade field to resume work and production in order:
Highlight key points, overcome difficulties, apply foreign trade policies for export rebate, export credit insurance and other compliance well and fully, and priorly guarantee the resumption of work and production of leading enterprises and key links in major regions with centralized supply chains and the foreign trade field, so as to ensure the smooth operation of foreign trade industry chains and supply chains. Establish the list of key foreign trade enterprises resuming work, comprehensively consider import and export scale, industrial characteristics, order emergency degree, local employment conditions, regional epidemic prevention and so on, establish the list of key foreign trade enterprises resuming work at the levels of province, city and county, update list information in time, and get a clear picture of details of resumption of work and production. By setting green channels for policy implementation, accelerate the implementation of all assistance policies promulgated by relevant departments and local governments.

Circular of the National Development and Reform Commission on Further Deepening Reform and Ensuring Effective Work on Foreign-invested Projects in Response to the Epidemic

(Fa Gai Wai Zi [2020] No.343)

69

Support for foreign economic and trade development

Boost enterprises in the foreign investment field to resume work and production in order:
Continuously optimize business environment, and enhance the confidence of foreign investors in long-term investment operation. Priorly guarantee the resumption of work and production of foreign-funded leading enterprises and supporting enterprises with significant influence in the global supply chain, in a bid to ensure the stability of global supply chain. Coordinate about the promotion of synchronous resumption of work of foreign-funded enterprises and upstream and downstream enterprises in such fields as of electronics and automobiles. Guarantee the implementation of major foreign-funded projects, intensify service guarantee, and carry forward the project construction and investment. Give play to the role of state-level economic development zones and pilot free trade zones as investment attraction platforms, and accelerate foreign-funded enterprises to resume work and production in eligible ones.

Circular of the General Office of the Ministry of Commerce on Promoting Enterprises in Commerce Field to Resume Work and Production in Order on the Premise of Satisfactory Epidemic Prevention

70

Support for foreign economic and trade development

Positively assist in the resumption of work and production of foreign-funded projects and foreign-funded enterprises. Development and reform commissions at all levels shall generally conduct epidemic prevention and control and the resumption of work and production, and take the resumption of work and production of foreign-funded projects and foreign-funded enterprises as current important work. Concerning projects already put into production, help with the coordination about problems such as return to work, logistics and materials, and restore production capacity as soon as possible. As for projects in construction, ensure engineering construction guarantee and the connection of examination and approval matters, and strive for no influence on the overall progress of projects. As for preliminary projects, innovate in work methods, support project parties to get through all formalities remotely, and enter into implementation phase as soon as possible. Actively contact foreign-funded enterprises, coordinate about the solution of obstacles to the resumption of work and production, and uniformly apply all enterprise assistance policies to foreign-funded enterprises. Adopt "one-to-one" precise assistance for key foreign-funded enterprises, actively respond to the collaborative work resumption of industrial chains reflected by foreign-funded enterprises, and report cross-province coordination matters to the National Development and Reform Commission in a timely way.

Circular of the National Development and Reform Commission on Further Deepening Reform and Ensuring Effective Work on Foreign-invested Projects in Response to the Epidemic

(Fa Gai Wai Zi [2020] No.343)

71

Support for foreign economic and trade development

Conduct the collaborative promotion of major foreign-funded projects. For projects included into the major foreign-funded projects under the coordination of special work groups, the special work groups and relevant departments will provide policy supports, and generally promote them together with governments of places where the projects are located. Development and reform commissions at all levels shall actively coordinate about major foreign-funded projects at the local level, and ensure the provisions of elements necessary for such projects. Development and reform commissions of major provinces and cities utilizing foreign funds shall boost the establishment and improvement of local special work group mechanism for major foreign-funded projects, work out the list of projects and work schemes, intensify the linkage of all levels and department coordination, establish green channels, and promote the implementation of projects the soonest possible. Promote work in all areas by work on key points through major foreign-funded projects, and enhance services for foreign-funded projects in an all-round way.

Circular of the National Development and Reform Commission on Further Deepening Reform and Ensuring Effective Work on Foreign-invested Projects in Response to the Epidemic

(Fa Gai Wai Zi [2020] No.343)

72

Support for foreign economic and trade development

Fully implement the management system of negative list for access of foreign investment. With respect to foreign-funded projects out of the negative list for access of foreign investment (the "negative list"), no separate access restrictions to foreign investment shall be set. Except domestic and foreign-funded projects necessary to be ratified under the Catalogue of Investment Projects Subject to the Approval of Governments, other foreign-funded projects shall be subject to the local record-filing administration implemented by local development and reform commissions. Handle ratification formalities for new foreign-funded projects or merger and acquisition projects involving fixed asset investment in the negative list, according to provisions on shareholding percentages and senior executives. In particular, projects with the total investment of not less than US$300 billion shall be ratified by the National Development and Reform Commission, and those with the total investment of less than US$300 million shall be ratified by provincial development and reform commissions. Foreign-funded projects settled in pilot free trade zones shall be subject to the negative list of such pilot free trade zones.

Circular of the National Development and Reform Commission on Further Deepening Reform and Ensuring Effective Work on Foreign-invested Projects in Response to the Epidemic

(Fa Gai Wai Zi [2020] No.343)

73

Support for foreign economic and trade development

Enhance the record-filing convenience of foreign-funded projects. All record-filed foreign-funded projects shall be subject to informative record-filing administration. Record-filing will be completed when a record-filing authority receives the basic project information provided by a project entity before project implementation through the National Online Platform for Approving and Regulating Investment Projects (the "Online Platform"). The basic project information includes project entity, project name, project place, project contents, investment scale, investors and nationalities, contribution amounts and percentages, and the statement on conformity with the negative list and industrial policies. The record-filing certification may be printed by the project entity independently through the Online Platform.

Circular of the National Development and Reform Commission on Further Deepening Reform and Ensuring Effective Work on Foreign-invested Projects in Response to the Epidemic

(Fa Gai Wai Zi [2020] No.343)

74

Support for foreign economic and trade development

Simplify foreign-funded project ratification formalities. Where a project entity submits a project application report, except for stipulated contents, it is unnecessary to attach financial statements, capital credit certificate, the examination and approval document for environment impact assessment, energy conservation examination opinions and the confirmation document for contribution by state-owned assets. Save as otherwise stipulated under laws and administrative regulations, ratification formalities for foreign-funded projects may be handled together with other licensing formalities. Push forward remote handling fully. Eligible places shall accelerate the improvement of receiving and issue functions of the Online Platform, realize paperless handling; places ineligible temporarily may receive and issue documents by mailing, for the purpose of realizing non-face-to-face handling. With respect to projects with a difficulty in the handling for relevant appendixes to declaration materials in the period of the epidemic, a ratification authority may conduct acceptance, and firstly handle formalities, with the appendixes to be supplemented later.

Circular of the National Development and Reform Commission on Further Deepening Reform and Ensuring Effective Work on Foreign-invested Projects in Response to the Epidemic

(Fa Gai Wai Zi [2020] No.343)

75

Support for foreign economic and trade development

Improve tax-free confirmation processes for equipment imported for encouraged foreign-funded projects. Regarding encouraged foreign-funded projects in the scope of the Catalog of Industries for Encouraged Foreign Investment, continuously implement duty-free policies for the equipment imported for self-use within total investment amount. Cancel the forwarding link below the provincial level for encouraged foreign-funded projects above the limit. A project entity shall directly apply for tax exemption to the provincial development and reform commission, which will report to the National Development and Reform Commission upon preliminary review. In the period of the epidemic, any project with the list of imported equipment unable to be determined temporarily due to supply chain problem can be accepted with the lack of the list. Other relevant materials may be submitted to the National Development and Reform Commission through vertical network for the start of handling procedures firstly.

Circular of the National Development and Reform Commission on Further Deepening Reform and Ensuring Effective Work on Foreign-invested Projects in Response to the Epidemic

(Fa Gai Wai Zi [2020] No.343)

76

Reduction of transportation and logistics costs

Reduce fees of government-priced port operational services for a certain period of time. From March 1, 2020 to June 30, 2020, reduce the fee standard for the government-priced harbor fees on cargo and security fees on port facilities by 20% respectively; and, cancel compulsory emergency response services for non-oil freighters, as well as the service fees. Encourage local regions to offer larger concessions during the epidemic prevention and control period, according to the local situation.

77

Reduction of transportation and logistics costs

Upon approval by the State Council, it is decided to exempt national toll road vehicles from tolls in the period of prevention and control of COVID-19. The time of exemption from tolls is from 0 o'clock of February 17, 2020 to the end of epidemic prevention and control. The scope of vehicles exempted from tolls is all the vehicles passing toll roads according to laws. The scope of toll roads with the tools exempted from is toll roads lawfully set upon approval and in conformity with the Highway Law of the People's Republic of China and the Administrative Regulations on Toll Roads.

Circular of the Ministry of Transport on Exemption of Toll Road Vehicles from Tolls in the Period of Prevention and Control of COVID-19

(Jiao Gong Lu Ming Dian [2020] No.62)

78

Other measures promoting the resumption of work and production

Improve the facilitation of work and production resumption services. Streamline the examination, approval and requirements of work and production resumption, and take the county as the basic unit to adopt differentiated measures for epidemic prevention and control as well as work and production resumption in line with the principle of zoning and grading. Low-risk regions shall not delay the commencement of work by way of examination and approval, filing or other means. For both medium-risk and high-risk regions, implement list management for those essential matters of examination, approval and certification. No examination and approval or demand of certification documents may be implemented for items outside of the lists. It is strictly prohibited to charge enterprises any deposit, etc. for work and production resumption. Fully implement "one-window acceptance, parallel handling" for applications from enterprises to resume work and production, and designate one leading department in their respective administrative regions to uniformly accept applications and receive materials at one time, with relevant departments undertaking parallel handling and completing handling work within the specified time limit. In principle, replies to applications shall be made within two working days.

Circular of the Ministry of Transport on Exemption of Toll Road Vehicles from Tolls in the Period of Prevention and Control of COVID-19

(Jiao Gong Lu Ming Dian [2020] No.62)

79

Other measures promoting the resumption of work and production

Promptly correct unreasonable measures that control people flow and logistics. Clear up and abolish red tape that hinders the orderly return of laborers and the transportation of materials. In principle, non-key regions of epidemic prevention and control shall not restrict the travel of returning workers. Promote the mutual recognition of the quarantine and testing results of freight vehicle drivers and passengers, quickly release freight vehicles from the surrounding provinces (autonomous regions and municipalities directly under the Central Government) that have carried out quarantine and tests and have not passed through any key region of epidemic prevention and control, so as to reduce repetitive inspections.

Circular of the General Office of the State Council on Further Streamlining the Examination and Approval Process and Optimizing Services to Facilitate Enterprises' Resumption of Work and Production in a Targeted and Stable Manner

(Guo Ban Fa Ming Dian [2020] No.6)