The Chinese Communist government will provide loan support to some foreign companies in a new move to stabilize foreign investment.
Bloomberg reported on Dec. 17 that companies operating in key sectors such as special and general equipment, medical equipment and automobile manufacturing will be eligible for financial support, according to a joint statement issued Thursday by the Ministry of Commerce and the Communist Party’s Banking and Insurance Regulatory Commission.
The report said the central bank will provide 1.5 trillion yuan ($230 billion) in special refinancing and rediscounting lines to companies operating in what the Communist Party considers “key sectors,” while the Export-Import bank of China will provide 5.7 trillion yuan in new loans, The Export-Import Bank of China (Exim Bank of China) will provide a new loan line of 570 billion yuan.
The Ministry of Commerce said in a statement that China should strengthen the role of financial support in stabilizing foreign investment and further improve the “targeting” and “intuitiveness” of its financial policies.
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