Chongqing- On July 16th, 2020, the Information Office of Chongqing Municipal People’s Government held a news conference to report the state of foreign trade over the first half of 2020 in the domain of import and exports.

Vice-director and official spokeswoman for Chongqing Customs Mrs. Li Yu delivered the critical economic data, trends, and reforms undertaken by the agency over the past six months.

Under the strong central leadership of President Xi Jinping, Chongqing Customs has strived to advance the causes of economic recovery and epidemic control. This has been achieved by upholding the goals stipulated under the policies of ‘Six stabilities’ and ‘Six guarantees.’

In the first half of 2020, the value of foreign trade through import and export in Chongqing reaches 275.92 billion Yuan, which is an increase of 3.5% on the previous year.

From this total, exports accounted for 169.96 billion Yuan, a drop of 0.7%, while imports amounted to 105.96 billion Yuan, an increase of 11%.

The main characteristic of foreign trade in Chongqing over the past six months is one of gradual recovery beginning in April, when negative growth returned to positive, achieving double-figure growth over May and June.

Fourteen thousand seven hundred six businesses registered with Chongqing Customs over the first half of 2020, an increase of 14.7%, of which 2993 are active in foreign trade.

A second feature is the role of laptop computers in driving exports. Over the past six months, electronic information product exports reached 126.16 billion Yuan, an increase of 5.2%, and accounting for 74.2% of the overall value of exports. During this period, manufacturers exported 25.5 million laptop units worth 72.48 billion Yuan.

At the same time, 46 thousand cars were exported, while protective epidemic gear, medicines, and medical equipment worth 3.21 billion Yuan.

Hi-tech products such as integrated circuits and hard drives accounted for over 70% of imports worth 75.03 billion Yuan and an increase of 26.4%.

Also, the import of fruit, meat, and staples helped double consumer spending as they amounted to 1.99 billion, 1.26 billion, and 260 million Yuan, respectively.

The processing trade also enjoyed stable growth, where imports over the last half-year totaled 138.64 billion Yuan, roughly on a par with the previous year.

Over the same period, the foreign trade in bonded logistics increased 39.9% to 59.28 billion Yuan, while general trade fell by 14.3% to 76.5 billion Yuan.

Private enterprise in Chongqing traded 93.26 billion Yuan in imports and exports, seeing an increase of 60.7% alone in June. Over the same half-year period, foreign-invested enterprises achieved a total of 159.7 billion Yuan in their respective field.

Trade with the ASEAN block remained stable and is the largest trading partner of Chongqing. Import and exports totaled 51.11 billion Yuan, achieving positive growth in June following the previous five months.

Import and exports with Europe and the USA amounted to 45.3 billion and 41.97 billion respectively, which represent a fall of 2% and 7.2%.

Trade figures with Taiwan and Hong Kong grew remarkably over the same period, which respectively totaled 22.01 billion and 13.25 billion Yuan, increases of 44%, and 110%.

Countries along the One Belt One Road network achieved import and export figures of 76.68 billion Yuan, an increase of 4.5%, and representing 27.8% of foreign trade in Chongqing.

While the latest trends are encouraging, the epidemic situation overseas remains in a dire state, and due care is vital during the process of development. Chongqing Customs is following governmental directions to implement the ‘Six stabilities’ and ‘Six guarantees’ to achieve stable, high-quality growth, and contribute further to the socio-economic development of Chongqing.

The attainment of positive growth has not been easy in light of the global epidemic. During this period, the central government spared no effort in combating the outbreak while maintaining socio-economic development. China was the first to return to work following a series of measures to stabilize foreign trade. In the case of Chongqing, there were several additional factors.

One is the efforts of the Chongqing Municipal Government. In response to the sudden outbreak, they moved quickly to ensure the industrial supply chains and logistics with a range of swift and decisive measures. These included the simplification of procedures, tax relief, optimization of the business environment, and assistance to enterprises to resolve their difficulties. This way, production in the downstream industry was able to return to work, and the swift resumption of economic vitality was assured.

Chongqing Municipality also has the four bonded port areas of Lianglu Cuntan, Xiyong, Jiangjin, and Fuling, which are special monitoring zones for Chongqing Customs. There are also three bonded logistic centers. A total of 196.56 billion Yuan worth of import and export goods passed through these ports and saw an increase to 71.2% from 64.9% in the proportion of foreign trade in Chongqing.

A third factor is the expansion of trade in alternative routes. During the epidemic, the number of flights reduced drastically, so the Chongqing-Europe Yuxinou freight railway and sea routes played an important role in driving economic recovery. In the first half of this year, 914 freight train services transported 569 thousand tons of goods, a corresponding increase of 6.9%, and 8.1%. Businesses from 30 provinces around China were attracted to use this route to trade with Europe.

The Yuxinou Freight Railway also saw a noticeable increase in mail services. Fourteen freight trains were used to specially deliver mail, including 463 shipping containers from other provinces carrying around 14 million items, and accounting for 60% of overall mail delivery.

Additionally, the sea-rail intermodal freight route shipped 9659 containers, an increase of 52.37%.

Step by step, efficiency in the customs clearing process has been improved, and the port business environment optimized. In cooperation with Shanghai Customs, the transfer time for onward shipping within China of foreign trade goods has been reduced for two thirds. A joint two-step declaration and a green channel have been established to remove the need for secondary customs checks, which has increased the level of convenience and increased efficiency.

In June 2020, the clearance time for import and export goods passing through Chongqing Customs was 71.89 hours and 0.47 hours, respectively, a 69% and 96% reduction compared to the year 2017.

Free trade pilot zones and comprehensive bonded zones have received strong support and have turned Chongqing into a high ground for an open economy. In this cause, Chongqing Customs has also endeavored to break new ground. Reforms in multiple guarantor policy, new management systems, and heightened use of data has achieved cross-industry implementation and effectively reduced the cost to the business. Currently, the experience gained through this model is being expanded nationwide.

In the export of automobiles, Chongqing Customs has introduced the system of single time checks and transportation in the import and warehouse storage of whole cars, which has brought savings of 50% to related enterprise, and time efficiency savings have doubled.

Over the first half-year, the free trade pilot zones of Chongqing achieved a figure of 203.05 billion Yuan in foreign trade, an increase of 9.6%.

The third is the support of new enterprise development to stimulate foreign trade. Chongqing Customs has innovated in the field of cross border e-commerce to realize the unification in procedures for bonded items purchased online and other goods, the optimization in dealing with cross border returns, and support of international retail in both directions. These measures have turned Chongqing into a critical base for the storage and dispatch of bonded e-commerce import goods.

Over the past half-year, there were 147.671 billion e-commerce orders worth 3.024 billion Yuan, a corresponding increase of 29.3%, and 25.9%.

The same principle is being applied to the shipment of goods by air freight, including the rental of aircraft to perform deliveries. In the third batch of free trade pilot zones, they have completed the rental agreement for nine airplanes, which have transported 470 million US dollars of goods over the same period this year.

The final measure has been the solution of difficulties in foreign trade business, and support in return to work. Businesses impacted adversely by the epidemic have benefitted from the postponement of customs payments worth 290 million Yuan, with missed payment fees totaling 973 thousand Yuan being waived.

Assistance has also been offered for expanding domestic markets and implementing a selective tax policy for goods sold within China. This has reduced the tax burden for business by 2.864 million Yuan, while 30.32 million in delayed tax interest payments have been waived.

As of July 1st, following national customs policy, the time window for customs declaration and payments in the foreign trade of processed goods has been relaxed. Businesses who meet the necessary conditions may complete a tax declaration within 15 days following each quarter, which will significantly reduce the frequency of such procedures, increase efficiency, and relax the tax burden for the enterprise.