MNI POLICY: China to Aid Global Car, Electronic Supply Chains

     BEIJING (MNI) - China will give priority to resuming production at leading

foreign manufacturers to help ease the coronavirus impact on global supply

chains, particularly those in the auto and electronics sectors, said Zong

Changqing, head of the Foreign Investment Department at a Ministry of Commerce

said Thursday.

     "The impact of the coronavirus epidemic on the supply chain is temporary,

and China's important positions in the global supply chain will not be changed,"

said Zong, adding that there have been no large-scale relocations of supply

chains to outside China.

     Here are other key points:

     - The ministry will focus on ensuring full and timely export tax rebates,

whilst expanding credit to foreign trade companies, said Li Xingqian, head of

the Foreign Trade Department.

     - China will further reduce the premiums on export credit insurance for

small and medium-sized foreign trade companies, and allow reasonable delays in

payments, said Li.

     - China will improve logistics for imported agricultural goods to ease

congestion at ports, encourage companies to expand imports of medical supplies

and daily necessities, and simplify the import approval process, Li said.

     - Prices of agricultural products will fall steadily, as better weather,

improved logistics and better production process take effect, said Wang Bin,

deputy director of the Market Operations Department.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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