Shanxi introduces measures to promote open economy


Shanxi province in North China has recently issued a circular containing policies and measures to give financial support in accelerating the construction of an inland hub for opening up. 

The circular regulates 27 measures encompassing an array of eight aspects, including enhancing convenience, proffering financing aid, and managing risks associated with exchange rates. 

According to the circular, Shanxi plans to promote financial innovation, further facilitate cross-border trade and investment, strengthen policies and funding support in critical areas and vulnerable sectors of open economy development, and enhance cross-border financial risk prevention and control. 

For instance, support will be provided for foreign financial institutions to establish branch offices in accordance with laws and regulations. Domestic financial institutions will be encouraged to engage in overseas financing if eligible, and guidance will be offered to ensure compliant cross-border financial operations. 

The province of Shanxi has set its sights on bolstering the accessibility of financial products and services, honing the fund settlement services for cross-border e-commerce, lending support to trade service firms in augmenting their financial service capabilities, and streamlining the process of offshore international trade settlement. 

Credit support for foreign trade enterprises will be increased to meet their financing needs, while flexible support will be provided for cross-border financing of enterprises engaging in overseas expansion. 

The monitoring and early warning system for cross-border fund flows will be strengthened, and cracking down on illegal cross-border financial activities will be maintained.