China to cut trade fees, support financial leasing firms

Beijing: China aims to stoke growth in its financial leasing sector by cutting red tape and waiving requirements for minimum registered capital, the cabinet said on Wednesday.

Faster growth could lower firms` borrowing costs, spur capital investment and prod companies to move up the manufacturing value chain, the State Council said after a weekly meeting.

High borrowing costs that crimp spending are a concern in China given the importance of investment in driving the economy. The central bank on Tuesday cut interest rates for the fifth time since November to lower the cost of funding.

Companies that lease ships, planes, farm machinery and medical equipment, among others, would be able to register their business and import or export goods more simply, the government said in an online statement.

Authorities would also support the creation of more financial leasing firms that help the agricultural sector and small- and medium-sized firms to increase investment, the cabinet said.

To support China`s wobbly trade sector, fees charged by the government in relation to imports and exports would "in principle only fall and not rise", the cabinet said. Repetitive charges will be scrapped, and those that abuse their monopoly power to impose unfair charges would be investigated.

Chinese exports suffered their biggest drop in four months in August as softer demand from Europe and the United States hit sales, underlining the need for the government to increase support.