Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020. [Photo/Agencies]

Nation to take steps to stabilize long-term business confidence

China will strengthen services and help solve operational difficulties for global companies in order to stabilize the long-term business confidence of foreign investors amid the economic fallout of the COVID-19 pandemic, government officials said on Thursday.

The country saw foreign direct investment in the nonfinancial sector grow 0.5 percent year-on-year to 535.65 billion yuan ($77.16 billion) in the first seven months of this year, achieving positive growth for the first time since January, according to data from the Ministry of Commerce.

In July, FDI inflows expanded 15.8 percent year-on-year to 63.47 billion yuan, achieving positive growth for four consecutive months since April.

The government will also step up credit support for foreign trade companies, especially micro, small and medium-sized ones, and extend financial support to major foreign-funded enterprises, which are eligible for low-cost relending and rediscount quotas, said Ren Hongbin, assistant minister of commerce.

Ren's remarks came after the State Council released a guideline on Wednesday to roll out more measures to protect foreign trade entities, support the local growth of global companies and keep supply chains stable.

Under the new government rules, he said, foreign-funded companies are as entitled as domestic firms to the 1.5 trillion yuan relending and rediscount special quota support provided by the People's Bank of China, the nation's central bank.

Moreover, the Export-Import Bank of China's 570 billion yuan in new loans can also be used to support qualified key foreign-funded companies.

More efforts will be made to help foreign trade firms expand market channels, as well as to improve trade facilities and services, including cross-border e-commerce platforms, cross-border logistics and overseas warehouses, Ren said.

He said China will better protect intellectual property rights and the legitimate rights and interests of overseas businesses, as well as make sure that they are willing to invest and develop in China.