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[BEIJING] China will simplify bureaucratic government approval processes for its processing trade exporters to support the sector as it continues to contract amid a slowing economy.
Processing trade exporters will no longer need to gain approvals from commerce authorities to secure contracts and sell bonded imports domestically, the Ministry of Commerce and Customs said in a joint statement on Thursday.
Processing firms typically import raw materials or components and re-export finished products. Processing trade made up 28.9 per cent of China's total exports in the first seven months of the year, 2 percentage points lower than the same period a year ago, customs data showed.
"Commerce departments at all levels and customs should collaborate closely and create a good environment for the development of process trade," the statement said.
The new measures will take effect starting from September this year.
Rising production costs are driving a growing number of Chinese processing trade businesses to other countries for more lucrative profits, which has become a serious concern among Chinese policymakers.
China plans to use fiscal, land, and financial policies to encourage processing firms to move inland from the east coast, the Ministry of Commerce said in May.