|Yiwu Stabilizes and Improves the Economy’s Quality|
Since the beginning of 2022, in the face of increasing business pressure, vulnerable industrial chains, and limited investment plans, Yiwu has resolutely implemented the guidelines of epidemic prevention, economic stability, and safe development and thoroughly implemented a series of policies and measures to stabilize its economy, so as to strive for steady progress and quality improvement.
The Yiwu-based Chanodug Outdoors Products Co. recently received a tax refund of RMB 110,000, which came with perfect timing since the company was planning to expand the production.
In the last year, suburban camping has gradually become popular among consumers, driving up sales of outdoor equipment. Chanodug has benefitted from this trend, overwhelming the company which now needs to work at full capacity and often overtime.
In contrast to the benefit from the surge in orders, companies are facing difficulties such as soaring costs of raw materials and transportation, as well as an increase in the cost of labor. In response to such, Yiwu Tax Administration issued preferential tax policies. “With the help of tax officials, I completed the application in only a few minutes and received the tax refund the next day,” Chen Danlin, head of Chanodug, said with a smile. The solid support of these policies has given the company more confidence. “With this money, we can continue to purchase oilcloth and steel pipes for production.”
By the end of June, Yiwu registered 845,200 market entities, increasing by 12% on a year-on-year basis and ranking first in the province. These market entities are the basin of Yiwu economy, and only when the entities are dynamic the economic body is robust.
From January to June, Yiwu reduced local companies’ tax burden by 5.63 billion RMB, accounting for 38% of the total burden reduction of Jinhua. This measure is benefiting 1.67 million companies. Yiwu’s total burden reduction and the number of benefiting companies rank first in Jinhua.
The rapidity in introducing policies and actions to fully and precisely support local companies has set a strong guarantee for the stability and progress of Yiwu’s economy.
Since the beginning of this year, Yiwu has been prioritizing the introduction of major projects, focusing on the “4+x” modern manufacturing system and project implementation and completion.
The implementation of a project is inseparable from essential guarantees. In fact, Yiwu has made every effort to improve guarantees in crucial elements of land, finance, and energy. In terms of land, Yiwu will thoroughly implement the renovation of inefficient industrial land; in terms of finance, Yiwu is accelerating the progress of lending and is implementing upgraded policies related to first loans.
From January to May, the fixed asset investment completed in Yiwu increased by 15.5% year-on-year, ranking first in the municipality of Jinhua, and being 4.6 percentage points higher than that of the whole province. From January to June, Yiwu signed a total of 10 manufacturing projects worth more than 1 bn RMB each, including two manufacturing projects worth more than 10 bn RMB each.
The Dubai Jebel Ali Free Trade Zone is located thousands of miles away from Yiwu. Built on an area of 200,000 square meters, it recorded a total investment of about 1.06 bn RMB, and effectively reaches consumer markets including nearly 1 bn people in the surrounding areas of the Middle East, North Africa, and Europe. The Dubai Yiwu China Small Commodity City has recently been put into operation.
In midsummer, a large number of people entered the virtual venue, including overseas purchasers who could not come to Yiwu due to the pandemic. They completed sampling, selection, and ordering from their country.
In the first half of the year, affected by weak foreign demand and rising trade risks, Yiwu’s imports and exports came under pressure.
Through the introduction of new platforms aimed to find matching suppliers and customers, buyers can accurately match merchants with required supply capacity online; international freight forwarders can integrate the small and scattered booking requirements of merchants and reduce transportation costs; Jiehuibao enables merchants to settle, exchange, and collect money independently based on order data. “Since the use of matching transactions in March this year, we have initiated 324 inquiries, and through matching, we completed transactions for 21.44 million RMB with 142 clients,” a spokesperson of Mingfu Import and Export Co. said with satisfaction.
According to statistics, from January to May, the export volume of Yiwu was 167.8 bn RMB, an increase of 39% year-on-year, 26.1 percentage points higher than that of the whole province. And Yiwu’s export volume was 15.31 bn RMB, an increase of 107.3%. (Text and photo by Wang Ting, translated by Marco Lovisetto, edited by Mariam Ayad)