China unveils guidelines on financial support for new industrialization

China on Tuesday released guidelines on providing high-quality financial services to empower new industrialization, while deepening the demand-driven supply-side structural reform of the financial sector.

According to the guidelines jointly issued by the People's Bank of China (PBOC), the Ministry of Industry and Information Technology, the National Development and Reform Commission, and four other central government departments, China is to establish a basically mature financial system by 2027 that supports the high-end and intelligent development of manufacturing in an eco-friendly way.

This system will feature a more diversified range of financial products, ensuring closer coordination among various financial instruments -- including loans, bonds, equities, and insurance -- while effectively preventing cross-sector financial risks and enhancing service adaptability.

"New industrialization is a highly complex process that requires patient capital and long-term investment to better serve technological innovation, as well as substantial financial resources aligned with industrial and supply chains. This guideline, I think, effectively addresses these diversified demands in the new industrialization process," said Yang Tao, deputy director of the National Institution for Finance and Development.

By introducing multiple institutional innovations and concrete measures, the guidelines will encourage financial institutions to provide more diversified financial tools and more accessible investment and financing services, according to industry experts.

"For enterprises, this is a development opportunity -- they should proactively engage with financial resources. For financial institutions, this is a critical moment to build differentiated competitiveness -- they must quickly define their service positioning and develop unique strategies," said Li Liuying, an associate researcher at the Industrial Economics Institute of the China Center for Information Industry Development.

Since the start of the year, China has implemented a policy mix to channel more financial resources toward technological innovation, advanced manufacturing, green development, and small and medium-sized enterprises (SMEs).

As of May, the PBOC had increased the quota of relending for sci-tech innovation and technological upgrades from 500 billion yuan (about 70 billion U.S. dollars) to 800 billion yuan (about 111.5 billion U.S. dollars).

By the end of June, banks across China had signed loan agreements, amounted to 1.9 trillion yuan (about 265 billion U.S. dollars), with enterprises for equipment upgrades and technological transformation.

China unveils guidelines on financial support for new industrialization

The "soft landing" of the China-EU electric vehicle case will greatly boost market confidence and inject new momentum into China-EU cooperation in automobile trade and investment, a spokeswoman of the Ministry of Commerce (MOC) said at a press briefing in Beijing on Thursday.

He Yongqian, the spokeswoman, made the remarks after China and the European Union (EU) agreed on the necessity of providing general guidance on price undertakings for Chinese companies exporting battery electric vehicle (BEV) passenger cars to the EU.

"China and the EU simultaneously announced on Monday that they had achieved positive outcomes following multiple rounds of consultations on the EV case, a development that has drawn wide attention at home and abroad. Industry players from both sides have 'highly welcomed and fully endorsed' the outcome, saying the 'soft landing' of the case is expected to greatly boost market confidence and inject new momentum into China-EU cooperation in automobile trade and investment. Some EU politicians have described it as a positive step toward building a sustainable China-EU trade relationship, and said it demonstrated that resolving trade differences through partnership remains feasible," she said.

"Against the current international backdrop, China and the EU, acting in a spirit of mutual respect and within the framework of WTO rules, have properly addressed the EV case, which is of significant positive importance. The outcome will not only contribute to the sound development of China-EU economic and trade ties and help safeguard the stability of the global automotive industrial and supply chains, but will also send a clear and strong signal that both sides are willing to uphold a rules-based international trading order, setting a good example for countries to resolve differences through dialogue and consultation and injecting greater certainty and positive energy into global economic growth," she said.

"China appreciates the spirit of dialogue showed by the EU side and stands ready to work with the EU, building on the current positive outcomes, to further implement the consensus reached by the leaders of the two sides, maintain dialogue and communication, and support stable industrial and supply chains on both sides, continue to deepen cooperation on the basis of market principles, and make active contributions to the global green transition," she added.

"Soft landing" of China-EU EV case to significantly boost market confidence: MOC spokeswoman