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Strengthening Financial Support for Foreign Trade

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In recent discussions, the call for enhanced cooperation within the realms of business and finance has taken center stageThe push is aimed at identifying and eliminating key bottlenecks and weaknesses that hinder the internal and external flow of economic activitiesCentral to this initiative is the commitment to advance the quality and efficiency of financial services to bolster the real economy, ensuring that high-quality economic growth is not just a goal but a palpable reality.

Recent data released by the General Administration of Customs provide some compelling insights into China's external trade landscapeThe statistics reveal an overall steady and resilient performance in the country’s foreign trade this year, showcasing robust vitality amid global economic fluctuationsBy the end of the third quarter, the total value of China’s goods trade—import and export—hit an unprecedented 32.33 trillion yuan, marking the first time it exceeded 32 trillion yuan during this historical period, with a year-on-year growth rate of 5.3%. This surge is indicative of the powerful potential within domestic enterprises as they engage in cross-border trade

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The international market is evolving rapidly, with emerging markets demonstrating significant growth and new trade dynamics taking shapeThe technological sophistication and brand value embedded in exported products are on the rise, with cross-border e-commerce platforms expanding both the scale of goods offered and the range of services provided.

Moreover, the landscape of foreign investment has shifted significantlyIn the first half of this year, China's non-financial direct investment overseas experienced a staggering growth of 16.6% compared to the previous yearDomestic enterprises are increasingly leveraging this momentum, actively participating in global industrial arrangements and resource allocationNevertheless, it is critical to recognize that amidst this positive trajectory, global economic growth is facing challenges, characterized by increased uncertainty and unpredictability

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This complex and harsh environment for foreign trade and investment demands that financial institutions not only focus on promoting internal demand but also prioritize stability in foreign trade and capital inflow, striving for a balanced, stable, and sustainable socio-economic development.

Cross-border trade and investment are pivotal components of high-level opening-up strategies, serving as vital engines for promoting high-quality developmentIn the context of global economic integration, cross-border activities create bridges between the economies of nations, facilitate optimal resource allocation, and offer businesses broader market opportunities while unlocking new avenues for growthThe significance of this for enhancing national economic strength and international competitiveness cannot be overstated.

To foster cross-border trade and investment effectively, it is imperative to adopt a comprehensive perspective that views economic and financial strategies as interconnected

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It is essential that business departments gain an acute understanding of market demands and challenges faced by companies, while the financial sector, endowed with expertise in capital allocation and risk management, provides robust financial backing to support cross-border operations.

Given the current complex and dynamic landscape, the need for cohesive trade policies is more pronounced than everCoordination among fiscal, financial, and industrial policies is crucialFiscal policies, through means such as tax incentives and subsidies, can effectively reduce operational costs for enterprises, enhancing their competitiveness in the international marketConcurrently, financial policies can offer diversified channels for financing, meeting the capital demands of enterprises engaged in cross-border trade and investment.

Additionally, it is essential for financial institutions to leverage their core services

On one hand, there should be an emphasis on fostering comprehensive collaboration among financial entities, promoting information sharing and resource integration to develop tailored financial service solutions for cross-border enterprisesOn the other hand, they must proactively respond to emerging opportunities and challenges in trade development, such as the new demand for cross-border settlements driven by the acceleration of the internationalization of the renminbi, as well as the increased risks associated with burgeoning trade protectionismInnovative financial products, such as cross-border supply chain finance and trade financing insurance, can help businesses mitigate risks and better contribute to the construction of a new development paradigm, propelling sustainable and healthy growth in cross-border trade and investment.

Financial institutions should focus their strategies effectively to achieve tangible results

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By identifying key sectors, industries, and business models, they can cultivate new momentum for ensuring stability in foreign trade and capital inflowEnhancing services related to foreign exchange settlement, export credit, and credit insurance is fundamental in providing high-quality financial services that empower technology-driven enterprises to capture international market share, thus creating an integrated cross-border developmental environment that supports new productive forces.

Moreover, financial institutions need to leverage their international and professional advantages, mobilizing their diverse array of resources to actively participate in domestic and international investment attraction initiativesEstablishing close cooperation with government entities at various levels and relevant enterprises is vital for enhancing engagement with foreign-invested enterprises, thereby providing more diverse and specialized financial services

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