Four Policies To Help Shoe Companies Overcome Difficulties

According to media reports, the Ministry of Commerce has formally recommended to the State Council to slow down the pace of RMB appreciation and raise export rebates for clothing, toys and footwear so as to prevent a sharp fall in exports and to prevent a large number of export enterprises from closing down.

All of this is aimed at creating a stable living environment for small and medium enterprises in China.

The relevant departments of the Zhejiang provincial government have also introduced support measures. At the meeting held in July 3rd, Lv Zushan revealed the four major supporting policies of the Zhejiang provincial government in the next stage.

First of all, we should improve the financial environment under tight monetary policy and strive for the credit scale of Zhejiang province no less than last year.

Lv Zushan said that Zhejiang enterprises in Zhejiang province loans, and then to invest outside the province, accounting for a large proportion.

To this end, Lv Zushan in Beijing and four major state-owned banks and the Banking Regulatory Commission and other departments to communicate for three days, and achieved results.

"Encouraging enterprises to stabilize and promote adjustment" is the second aid policy put forward by the Zhejiang provincial government. Lv Zushan disclosed at the meeting that in the next two years, the provincial finance will produce 700 million yuan, and subsidize enterprises with good prospects and heavy pressure on foreign trade export.

The third aid measures strive to make financial innovations.

"Supporting more financial innovations" will become the attitude of relevant departments in Zhejiang Province, such as setting up an industrial development fund, guiding the issuance of small enterprises' collective debt, and developing small loan companies.

"Fourth, it is to further encourage enterprises to innovate independently.

For example, venture capital fund has been created.

Lv Zushan said at the meeting that last year, the provincial government invested more than 6 billion yuan in the enterprise's independent innovation, and this year there will be a big increase on this basis.

The "four measures" have become the guiding opinions of the Zhejiang provincial government's "support" policy.

Then in July 7th, the general office of the Zhejiang provincial government issued the "opinions on promoting the stable and healthy development of foreign trade in the whole province", and put forward 14 opinions on financial support, encouraging enterprises to explore the international market and the progress of export tax rebate.

The 14 opinions in a low profile are full of gold.

These policies include: from January 1, 2008 onwards, provincial finance will arrange a certain amount of funds to support the development of foreign trade, adjust the structure of foreign trade and economic cooperation, ensure the steady growth of foreign trade export in the whole province, carry out the pilot scheme of declaring export tax rebates in the whole province, exempt from providing the paper collection and verification verification list, speed up the examination and approval process of tax rebate documents, simplify relevant procedures and speed up the progress of auditing; all kinds of commercial banks should increase their support for foreign trade enterprises, increase the strength of foreign exchange loans, and continue to carry out financial products business, such as export rebate account hosting loans, and so on.

"From an enterprise perspective, financial subsidies may be the most practical."

According to the interpretation of "four measures" and "14 opinions" by Zhang Handong, director of the Zhejiang international economic and Trade Research Center, this shows that the government can consider more for the enterprises.

A Yiwu boss, who did not want to be named, said to Zhejiang merchants that this is the "most solid one" in the series of supporting policies.

Zhejiang provincial economic and Trade Commission deputy director Ling Yun also revealed that the provincial economic and Trade Commission will also pay close attention to the implementation of the existing industrial support policies in the second half of this year. At the same time, focusing on helping small and medium enterprises and difficult industries to tide over the difficulties, it has put forward 8 countermeasures and 26 countermeasures, including taxation, finance, land, foreign trade and coal and oil pportation. These suggestions have been submitted to the provincial government for reference.