China to unveil policy on foreign-funded export-oriented purchasing centers

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Last updated at: (Beijing Time) Monday, September 15, 2003

China to unveil policy on foreign-funded export-oriented purchasing centers

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China will soon unveil its detailed policy on the setting-up of export-oriented purchasing centers with exclusive foreign investment, revealed Hu Jingyan, director of the Foreign Investment Department under the Ministry of Commerce, at the Seminar on Policy for Export-oriented Purchasing Centers with Foreign Investment at the 7th China International Fair for Investment & Trade (CIFIT), September 10 in Xiamen. This means that transnational purchasing groups could conduct export business under independent qualification and enjoy appropriate treatment of export tax refunding.

According to the policy, said Hu, such purchasing centers will be established only in China's major cities at the initial stage. The only qualification for foreign investors applying for establishment of purchasing centers is a registered capital not below 30 million yuan. Purchasing centers will be allowed to conduct export and related business such as warehousing, re-export of processed products as well as import of samples needed in export-oriented purchasing. These centers will enjoy export tax refunding treatment, as do foreign-invested companies exporting China-made products in line with related stipulations.

These purchasing centers could provide conveniences for retailers to expand their purchasing for exportation. Meanwhile, for large-scale manufacturing enterprises, they could purchase in China more industrial products for international markets and their supporting network. So the new policy will help expand the nation's export and attract more transnationals to invest and purchase in China.

China-made products have gradually been favored by more and more consumers for their fine quality, low price and good service, said Hu, which boosted the purchase of global products in China's favor and promoted the country's export growth.

Statistics show that one-third of world top 500 retailers have so far entered China, pumping nearly 3 billion yuan of funds into Chinese commerce. The money spent by transnational retailing groups on purchasing in China exceeds US$ 30 billion annually. In 2002, Wal-mart, Carrefour and Metro, three retailing giants, spent more than US$15 billion on their purchasing in China, and the nation's total retail sales of consumer goods exceeded 4 trillion yuan, up 8.8 percent over the previous year.

By PD Online staff member Li Heng

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