China Foreign Trade: Banking sector offers support for enterprises to expand overseas

With China loosening its COVID controls last year, many enterprises are eager to facilitate their overseas business this year. And the banking sector is offering financial support to them. Wu Bin reports.

This company located in east China’s Nanjing is a major producer of commercial air conditioning.

As a hidden champion in the industry, it’s eyeing geothermal power plant business in several countries.

ALBERT YAM Executive Vice President, TICA “Because the wide disparity of economic and financial policies in various regions, we need globalized and specialized financial services.”

WU BIN Nanjing, Jiangsu Province “In this year’s government work report, the country vows to continue to support the development and growth of the private sector. Many private companies see 2023 as a year for their revival. And the banking sector is also offering different financial support to help them get through difficulties.”

What the TICA company needed was an overseas loan to help them expand their business.

So the Bank of China’s Jiangsu Branch has coordinated with their branch in Milan to guarantee the company a loan of 4.5 million Euro.

The process may sound simple, but it takes a lot effort to do it quickly.

WANG CHEN Deputy Head, Chengdong Subbranch, Nanjing Bank of China, Jiangsu Branch “It took less than a month from the time we received the client’s request to the time we were approved, which is a significantly shorter time compared to normal cross-border business.”

The shortening of the process is due to the bank’s rich experience in cross-border financial service and vast numbers of overseas branches.

To meet the demand of more enterprises’ “going-out” process this year, the bank has prepared a package of financial support to solve problems including foreign currency settlement, lack of funds and exchange rate fluctuations.

XU JUN Senior Manager, Global Transaction Banking Dept. Bank of China, Jiangsu Branch “In January and February, Bank of China’s Jiangsu Branch has provided international settlement services of over USD 18.8 billion to about 20,000 foreign trade companies, with the top market share in both international settlement and cross-border RMB settlement. Among them, 89 foreign trade companies have been served to seize overseas orders.”

With international travel restrictions loosened this year, multiple provinces in China have sent business delegations overseas to seize orders. Meanwhile, a series of measures, including financial support from the banking sector, have been issued to better facilitate cross-border trade. Wu Bin, CGTN, Nanjing, Jiangsu Province.

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