Recently, eight authorities, including the Ministry of Commerce ("MOFCOM"), have distributed the Circular on Launching the Pilot Scheme for Supply Chain Innovation and Application (the "Circular").
The Circular states that the pilot scheme will be implemented at the city and corporate levels for a period of two years. Pilot cities are required to roll out measures in support of the innovative development of the supply chain, optimize public services, create a favorable environment, push for improvement of the industry supply chain system, and explore the new mode of governance for interdepartmental and cross-regional supply chain. For pilot enterprises, their tasks are to employ modern information technologies, innovate technologies and modes of supply chain, develop and optimize the industry cooperation platform, improve the level of industrial integration and cooperation, help enterprises in the upstream and downstream to form a complete, highly-efficient, energy-saving and environmentally friendly industry supply chain, and facilitate enterprises to reduce costs, boost efficiency, achieve green development and succeed in industrial transformation and upgrading. In particular, it is made clear in the Circular that eligible enterprises may strengthen cooperation with commercial banks and platform enterprises in innovating business modes of supply chain finance, optimizing capital flow of supply chain, and actively and steadily carrying out supply chain finance business in accordance with laws and regulations.