The financial crisis has quite a serious impact on the 70,000-plus processing trade enterprises in Guangdong. In order to positively address the crisis and take the initiative into its own hands, the government of Guangdong is doing everything to help processing trade enterprises expand domestic sales, according to the foreign trade and economic cooperation bureau of Guangzhou.

First, in order to expand the domestic market, Guangdong is considering implementing the "Guangdong Goods Go North" project to help enterprises open up the mainland market. Guangdong has already contacted the governments of the Hong Kong and Macau special administrative regions and persuaded them to organise two to three major sales promotions in north China cities while taking part in various types of exhibitions on the mainland to help their companies open up the mainland market.

Second, in order to boost domestic sales, Guangdong will promote "sell first tax later" in the domestic sales of processing trade goods. Enterprises are allowed to sell goods produced with bonded import materials first before completing centralised customs declaration procedures. This will greatly facilitate the domestic sales of processing trade goods.

Moreover, the foreign trade and financial departments of Guangdong have prepared an implementation plan for the setting up of an Rmb1 billion fund to help processing trade enterprises undergo transformation and upgrade. This document has been submitted to the provincial government for approval.

The introduction and implementation of these measures will help Guangdong's processing trade enterprises launch domestic sales to make up for the losses resulting from the decline in exports and tide over the difficulties as soon as possible.