This year's government work report proposes to cultivate new growth points such as green trade and digital trade, and support the development of new offshore trade in areas with conditions.

In the opinion of the interviewed experts, "developing new offshore trade" will promote the development of new forms of foreign trade and open up new space for foreign trade.

Professor Chen Jianwei from the National Institute of Opening up at the University of International Business and Economics stated in an interview with Securities Daily that the new type of offshore trade mainly refers to trade that occurs between Chinese residents and non residents, where the goods involved in the transaction do not enter or exit China's first tier customs or are not included in China's customs statistics. This includes but is not limited to offshore resale, global procurement, commissioned overseas processing, and overseas purchase of goods for contracted projects.

Where is its' new '? Chen Jianwei stated that compared to traditional cross-border import and export trade, the new offshore trade has achieved the separation of capital flow, order flow, and cargo flow. For example, domestic enterprises undertake overseas orders, but the goods do not directly pass through the Chinese customs, but are delivered directly from overseas suppliers to overseas customers as a form of trade.

Hong Yong, a think tank expert from the China Digital Integration 50 Forum, stated in an interview with Securities Daily that China's new offshore trade is still in the early stages of development and exploration, but it is developing rapidly and has achieved significant results in practice in multiple regions. For example, many pilot free trade zones have actively piloted and formed distinctive development models, such as offshore resale in Shanghai and overseas commissioned processing in Suzhou.

The Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reform and Promoting Chinese path to modernization proposes to accelerate the development of offshore trade and develop new offshore international trade business in terms of improving the high-level opening up system and mechanism.

Hong Yong stated that supporting the development of new offshore trade aims to cultivate new models and drivers of foreign trade, enhance internationalization level and business environment.

Chen Jianwei believes that this move will help expand new space for China's foreign trade development and enhance its position in the global value chain. This model can reduce the operating and time costs of enterprises, improve trade efficiency, and attract more international trade business clusters.

In Hong Yong's view, places with conditions usually have the following characteristics: firstly, economically developed and highly open to the outside world; Secondly, it has policy advantages such as pilot free trade zones and comprehensive bonded zones; The third is to have a sound financial service system and high technological innovation capabilities. Therefore, Shanghai, Guangdong, Zhejiang, Beijing and other places have these conditions and are suitable for developing new offshore trade.

Chen Jianwei believes that for the development of new offshore trade, it is necessary to strengthen top-level design and policy guidance, and create a favorable development environment. Firstly, the business scope of the new offshore trade should be clarified, and corresponding regulatory and statistical systems should be formulated to ensure its standardized development; Secondly, encourage financial institutions to innovate financial products and services, providing convenient cross-border fund settlement and risk management support for new offshore trade; Finally, choose to pilot in areas with location and policy advantages, summarize the experience, and gradually promote it.

Source: Securities Daily