China’s Exim Bank to boost lending in an effort to support exporters hit hard by trade war

The Export-Import Bank of China, the country’s leading provider of export financing, will team up with other government agencies to help companies who have been hit hard by the US trade tariffs, its chairwoman said on Thursday.

“Some small trading firms have encountered huge difficulties,” Hu Xiaolian told the South China Morning Post on the sidelines of the World Economic Forum in Tianjin. “Our task, as a state-owned policy bank, is to ensure credit availability and solve high financing cost.”

Hu did not reveal the size of the new lending programme or whether there would be any special initiative to help small export businesses, many of which are fighting for survival as the trade war cuts export orders and rising costs erode profitability.

Following Tuesday’s meeting of the State Council, China’s cabinet, Premier Li Keqiang announced a series of measures to support exporters, including cutting customs clearance red tape, reducing the cost of customs procedures, expanding export credit insurance and increasing export tax rebates. The announcement came hours after the US imposed tariffs on an additional US$200 billion of Chinese goods, on top of the $50 billion Chinese imports already sanctioned.

In his address to business leaders on Monday, the premier promised to give the same treatment to private and foreign businesses as state-owned players, and improve access to financing for small firms.