China will slow the outflow of processing trade exporters

China is going to take a series of steps towards stemming the outflow of processing trade businesses to other countries by simply encouraging them to move to its western or central regions with relatively low labor costs.   

This Asian country will make use of differentiated policies such as reserving land for the processing trade in some other parts of China.

Currently, in China, production costs are going up and some processing trade companies are moving abroad. China’s government hopes to slow this dangerous transfer to other countries and keep these businesses within the country.

China intends to employ fiscal, land as well as financial policies to encourage processing companies to move to inland China right from the east coast, and including streamlining government approval processes.

Then, the share of processing trade as part of the country’s overall exports is approximately 30% now. That definitely differs from the historical peak of 53%.


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