Recently, the Ministry of Commerce ("MOFCOM") has distributed the Circular on Relevant Work concerning the Special Funds for the Development of Foreign Economy and Trade in 2017 (the "Circular").
The Circular points out that main areas supported under the special funds should be sustained and stabilized and support will be provided to border cooperation zones and cross-border cooperation zones in their efforts to better the construction of public service capacities, facilitate cooperation with relevant areas, foster investment and trade, and improve the information construction. Besides, the Circular calls for further integrating purposes for which the special funds are used, with focus placed on core sectors and weak links regarding the foreign economy and trade development. For example, for matters related to the transformation and upgrading of foreign trade industry, support should focus on back end stages of the industry chain, including brand cultivation, formulation of standards, global marketing, and after-sales services. According to the Circular, the MOFCOM and the Ministry of Finance ("MOF") will set up the funds to lead innovative development of service trade this year, with a view to bringing in the market-oriented mechanism and helping service trade firms raise funds through social capital; they will also strengthen the linkage with the finance insurance and urge financial institutions and export credit insurances institutions to give stronger endorsement to the foreign economy and trade.