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Today’s Top Headlines




Shanghai FTZ Trials Trade Assistance Scheme

by Mary Swire, Tax-News.com, Hong Kong

12 July 2017

The Shanghai Pilot Free Trade Zone has announced it will trial an assistance program from July 15, 2017, to help the Zone's enterprises mitigate the harmful effects of trade.

The assistance program is modeled on other trade adjustment assistance programs, the first of which was introduced in 1962 to reduce the damaging impact of imports felt by certain sectors of the US economy. Similar programs were then adopted by the EU, Japan, South Korea, and other economies.

Zone enterprises can apply for assistance if they suffer labor losses, shrinking sales, and falling share prices due to trade frictions. Government assistance is available if a company reports a 20 percent loss of employees in one year; or a 10 percent loss for two consecutive years; or a 30 percent drop in outputs or sales.

The assistance comes in the form of financial and technological support for enterprises in marketing, product R&D and certification, technological upgrade, business consulting, employee training, export credit insurance, and supply chain management for a period of two years.

The Shanghai Pilot Free Trade Zone says trade friction is a common problem facing Chinese exporters. By the end of 2016, Shanghai companies were involved in more than 740 trade dispute cases with 445 cases ruled against them, according to official statistics.

The Shanghai Pilot Free Trade Zone was founded in 2013 and offers a number of tax preferences. It comprises a bonded area, high-tech park, financial area, and an export processing zone.

TAGS: tax | business | training | insurance | employees | anti-dumping | China | trade disputes | Korea, South | trade | Japan | free trade zone

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