China is accelerating the pace of facilitating its companies to further integrate and move up the global value chain, the Ministry of Commerce said on Dec 2.
The government recently outlined guidance to impel mainland companies to become actively involved in the global value chain.
“The guidance is the first of its kind. It will have a positive impact leading Chinese companies to explore ways and methods to move up the global value chain and sustain their success in the international market,” said Shen Danyang, spokesman for the Ministry of Commerce, at a news conference in Beijing.
The guidance puts forward a policy framework, including industrial funds, fiscal taxation, trade facilitation, finance and innovation.
Under the guidance, the government will support Chinese companies to increase the added value of their export products.
For example, it reinforces the importance of international cooperation and communication in regards to the accounting method of added value, policy and rule making.
In addition, the guidance proposes specific ways as to how Chinese industries could move up the value chain, and calls for an evaluation system.
The full text of the guidance will be released soon, according to Shen. The Ministry of Commerce led six other concerned government bodies to draft the guidance.
Huang Yanghua, an associate professor at the Institute of Industrial Economics under the Chinese Academy of Social Sciences, Beijing, said that small- and medium-sized companies, when getting connected to the global value chain, would benefit from convenient market access, low-cost factors of production and innovation-oriented partners around the world.