The COVID-19 will have a significant negative effect on Jiangsu's open economy in the short term, but considering the impact is exogenous and one-off, it will not affect the fundamentals of Jiangsu's long-term economic growth. Jiangsu should therefore, make more use of the advantages of complete industrial system, continuous optimization of economic structure and strong endogenous driving force of economic development, to put the policy focus on taking the response to short-term economic shocks, so as to effectively reduce the burden on enterprises and establish a support mechanism for foreign trade enterprises. In this way, we may ensure that there will be no large-scale or substantial decline in foreign investment and foreign trade in the short term, with the stability of supply chain and the growing confidence foreign investment holding towards Jiangsu. Specifically, it is necessary to substantially reduce the tax burden of domestic and foreign-funded enterprises to ease cost pressure; increase financial support for domestic and foreign-funded enterprises to provide financing facilities; make various efforts to promote trade facilitation and smooth economic circulation; and strengthen support towards key outward-looking enterprises to retain key links in the supply chain.
