China to Provide Financial Support to Key Foreign Companies

China’s government said it will provide financial support to some foreign companies to help them offset the impact of the pandemic and resolve funding difficulties, part of its efforts to improve the business environment for overseas investors.

Companies operating in key areas, including special and general equipment, medical equipment, and auto manufacturing, will be eligible to receive the financial support, the Commerce Ministry said Thursday in a joint statement with the country’s banking and insurance regulator.

The businesses will have access to funds including 1.5 trillion yuan ($230 billion) in special re-lending and re-discounting quotas provided by the central bank, and 570 billion yuan in a new loan quota from Export-Import Bank of China.

China should enhance the role financial support plays in stabilizing foreign investment and further improve the “targetedness” and “directness” of financial policies, the Commerce Ministry said in its statement.

©2020 Bloomberg L.P.

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