Financial Support Countermeasures Study Of Chongqing Municipality's Foreign Trade Development

Either theoretically or evidenced by the facts of our country's revolution and opening to the outside world in recent more than 20 years, it is clear that foreign trade, as the 'Engine of Growth', promotes economic development effectively. In the same progress of the whole country, Chongqing Municipality's foreign trade developed too. But compared with eastern territories' gross quantity structure and contribution to economic development, the gap between Chongqing's foreign trade and that of eastern territories is much apparent. There are many causes. Financial support is one of the most important reasons. Financial support has much impact on the territory's economy as a whole, of and on which the territory's foreign trade is a part and is based. As one of the important reasons, our country's eastern territories preferred financial support policies in the early days of revolution and opening caused the difference of economic growth between eastern and western territories. On the other hand, financial support has much impact on foreign trade companies' daily operation. For Chongqing's foreign trade companies, especially pure trade companies, it was and it is a big problem to get sufficient financial resources to support their business operation, due to their companies' size credit record etc. In order to promote Chongqing's foreign trade development and then accelerate Chongqing's economic growth, countermeasures can be carried out in two fields: government and financial institutions. For government, as far as WTO principles permitted, measures can be taken to help foreign trade companies to get financial institutions' loan/financial support: guarantee fund for foreign trade companies / opening and control policies combination in the field of financial institutions, measure to cut foreign trade companies' financial costsrtax refund / interest compensation, and measures to optimize foreign companies companies' structure to get higher foreign trade development and lower financial dependency. For financial institutions, trade finance should be carried out with much more effort, forfaiting factoring and new trade finance products should be applied/developed to meet the foreign trade companies' demand, with the financial institutions' business developed and risk controlled at the same time.