Multiple departments jointly introduce 12 measures to boost the circulation of fresh agricultural products.

(5) Strengthen guarantee and credit enhancement services. Government-backed guarantee platforms at the city and county levels can increase their support for the fresh agricultural product distribution sector. They should collaborate with local departments such as Development and Reform, Agriculture and Rural Affairs, and Financial Services to effectively conduct guarantee reviews and oversight, thereby addressing the credit and financing needs of small-, medium-, and micro-sized enterprises. Commercial banks are encouraged to include operating rights of contracted land—acquired through transfer—held by various types of enterprises, including private firms, in their list of eligible collateral and质押able assets. In regions where conditions permit, risk compensation funds specifically designed for small-, medium-, and micro-sized fresh agricultural product enterprises may be established. Additionally, large-scale distribution entities like agricultural wholesale markets are encouraged to develop third-party supply chain finance service platforms. (Responsible parties: Ministry of Finance, CBIRC, and relevant departments of local governments at all levels) Twelve departments jointly issued the "Implementation Opinions on Further Optimizing the Development Environment and Promoting the Circulation of Fresh Agricultural Products."

The "Opinions" address reducing business operating costs, strengthening financial support, expanding the supply of land and housing, fostering a favorable business environment, and helping enterprises grow stronger and larger. Five areas, outlining 12 policy measures to foster a favorable environment for the development of the fresh agricultural product distribution industry.

The "Opinions" call on all regions and departments to strengthen organizational leadership, clarify task divisions, enhance coordination and collaboration, and, based on local conditions, step up policy innovation and support efforts. This is aimed at effectively addressing key challenges faced by market entities—especially private enterprises—in the circulation of fresh agricultural products, thereby fostering the healthy development of the fresh produce distribution industry.

Here is the full text of the opinion:

Opinions on Further Optimizing the Development Environment to Promote the Circulation of Fresh Agricultural Products

NDRC Economic and Trade [ No. 809 of 2020

To the Development and Reform, Public Security, Finance, Natural Resources, Ecological Environment, Housing and Urban-Rural Construction, Transport, Agriculture and Rural Affairs, Commerce, Taxation, Market Regulation, and Banking and Insurance Supervision departments of all provinces, autonomous regions, municipalities directly under the central government, and cities separately listed in the national plan:
  The circulation of fresh agricultural products encompasses a series of critical stages, including procurement, processing, storage, transportation, and sales—stages that directly impact farmers' incomes and consumers' access to fresh produce. This process plays a vital role in balancing supply and demand, ensuring stable market availability, and mitigating price fluctuations. In recent years, various market players have made significant strides in the fresh agricultural product distribution sector, with private enterprises particularly emerging as the driving force behind China's fresh produce logistics industry. To further optimize the business environment, address key challenges hindering the growth of companies—especially private firms—in this sector, and ultimately foster the healthy development of the fresh agricultural product distribution industry, the following recommendations are proposed:

I. General Requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will comprehensively implement the spirit of the 19th National Congress of the Communist Party of China and the Second, Third, and Fourth Plenary Sessions of the 19th Central Committee, and put into practice the *Decision of the CPC Central Committee* "The Opinions of the State Council on Creating a Better Development Environment to Support the Reform and Growth of Private Enterprises" (Zhongfa [ In accordance with Document No. 49 of 2019 and the deployment requirements for comprehensively advancing COVID-19 prevention and control alongside economic and social development, we will adhere to the new development philosophy, maintain a problem-oriented and goal-driven approach, and carefully analyze the unique characteristics and underlying principles of fresh agricultural product distribution. Guided by supply-side structural reform as the main focus, and spearheaded by integrated construction across harvesting, storage, transportation, and sales, we will prioritize removing policy barriers, address critical gaps in the distribution system, and optimize the business environment. This effort aims to further unleash the growth potential of market entities in the distribution sector, fostering the quality enhancement, expansion, and upgrading of enterprises—particularly private businesses—and boosting the concentration within the fresh agricultural product distribution industry. Ultimately, these measures will help reduce costs, minimize waste, improve efficiency, and enable farmers to increase their incomes, contributing significantly to rural revitalization, improving people's livelihoods, and achieving broader societal benefits.

2. Reducing Business Operating Costs

  (1) Reduce the financial and fee burden on businesses. Electricity used for fresh-keeping and storage facilities built in rural areas by family farms, farmer cooperatives, supply-and-marketing cooperatives, postal and express delivery companies, leading agricultural enterprises, and agricultural product distribution firms will be charged at agricultural production electricity rates. Additionally, ensure full implementation of the policy exempting vehicles legally loaded with and transporting products listed in the nationally unified "Catalogue of Fresh Agricultural Products" from vehicle toll fees. (The National Development and Reform Commission and the Ministry of Transport are jointly responsible; relevant departments of local governments at all levels will also play a key role.)
  (II) Solving the VAT Credit Challenge. Addressing the difficulty businesses face in obtaining VAT credit vouchers for fresh agricultural products directly sourced and sold by farmers, we will intensify efforts to promote electronic invoicing. This includes supporting businesses in remotely verifying and issuing standard VAT e-invoices that serve as proof of agricultural product purchases, providing companies with a convenient, flexible option for claiming VAT credits. (To be overseen by the State Administration of Taxation.)

3. Increase financial support.

(3) Support enterprise infrastructure development. Actively support the construction of urban and rural cold-chain logistics infrastructure through mechanisms such as central budget investments. Encourage private enterprises in the fresh agricultural product distribution sector that meet eligibility criteria to issue revenue bonds for agricultural wholesale market projects, thereby tapping into corporate bond financing opportunities. Additionally, encourage banking and financial institutions to provide credit support—on a market-oriented and rule-of-law basis, while ensuring manageable risks—to all types of enterprises, including private firms, investing in the construction or expansion of key large-scale agricultural distribution infrastructure such as agricultural wholesale markets, logistics parks, and processing & distribution centers. (The National Development and Reform Commission, the Ministry of Finance, and the China Banking and Insurance Regulatory Commission will be responsible for coordinating these efforts; relevant departments of local governments at all levels will also play a crucial role.)

  (Four) Support enterprise financing and relief efforts. Increase support for working capital loans, guiding commercial banks to provide tailored credit assistance to leading enterprises involved in the distribution, marketing, and processing of fresh agricultural products. Leveraging industry-specific characteristics—such as seasonal fluctuations in agricultural product availability—develop loan products that meet the short-term operational funding needs of private enterprises, featuring streamlined procedures and rapid approval processes. Additionally, encourage qualified private enterprises engaged in the circulation of fresh agricultural products to undergo shareholding reforms, helping them establish and refine modern corporate governance systems, thereby attracting capital through equity financing. (The National Development and Reform Commission and the China Banking and Insurance Regulatory Commission will jointly oversee implementation.)
  (5) Strengthen guarantee and credit enhancement services. Government-backed guarantee platforms at the city and county levels can increase their support for the fresh agricultural product distribution sector. They should collaborate with local departments such as Development and Reform, Agriculture and Rural Affairs, and Financial Services to effectively conduct guarantee reviews and oversight, thereby addressing the credit and financing needs of small-, medium-, and micro-sized enterprises. Commercial banks are encouraged to include operating rights of contracted land—acquired through transfer—held by various types of enterprises, including private firms, in their list of eligible collateral and质押品. In regions where conditions permit, risk compensation funds specifically for small-, medium-, and micro-sized fresh agricultural product enterprises may be established. Additionally, large-scale distribution entities like agricultural wholesale markets are encouraged to develop third-party supply chain finance service platforms. (Responsible parties: Ministry of Finance, CBIRC, and relevant departments of local governments at all levels)

4. Increase the supply of land and housing.

(6) Implement policies supporting land use for agricultural product distribution. Fully enforce regulations governing facility agriculture land management, and provide support for constructing infrastructure directly tied to agricultural production—such as drying and sunning facilities, sorting and packaging units, and fresh-keeping and storage systems. Additionally, establish public distribution centers for fresh agricultural products around urban areas, designed to supply delivery services to retail chains, fresh-food e-commerce platforms, and chain restaurants. These centers will follow the same land-use policies applied to wholesale agricultural markets. Importantly, no hidden barriers should be imposed on private enterprises when it comes to land access. (The Ministry of Natural Resources and the Ministry of Agriculture and Rural Affairs are jointly responsible; relevant departments of local governments at all levels will oversee implementation.)

  (7) Addressing Challenges in Retail Terminal Space Availability. Local authorities should carefully plan and strategically arrange terminal outlets such as agricultural markets, community vegetable shops, fresh-food supermarkets, and pre-positioned warehouses for online fresh-food retailers. This includes addressing issues like inadequate housing options and high rental costs caused by poorly planned or insufficiently developed urban retail networks. In new residential areas, it is essential to incorporate the construction of community vegetable shops within the overall development plans. For older residential neighborhoods, local governments should adopt innovative approaches—such as administrative acquisitions, repurposing vacated spaces, property exchanges, or large-scale, contiguous lease arrangements—to bolster the establishment of convenient retail terminals like community vegetable shops. Additionally, communities are encouraged to identify and allocate space for public charging infrastructure tailored to support the delivery of fresh produce, thereby fostering the growth of new retail models like online fresh-food e-commerce. (The Ministry of Natural Resources and the Ministry of Housing and Urban-Rural Development will jointly oversee implementation, with relevant departments of local governments at all levels taking primary responsibility.)

5. Fostering a Favorable Business Environment

(8) Foster a healthy and transparent relationship between government and business. Local government departments should avoid causing private enterprises to shut down or halting project construction due to delayed approval processes, conflicting policies, or new officials ignoring unresolved issues from their predecessors. In particular, greater support should be provided to high-quality private enterprises facing difficulties, with efforts accelerated—within the bounds of the law—to unlock and revitalize existing facilities and corporate assets. Establish standardized, regular mechanisms for government-business communication, publicly disclose operational rules and procedures, and ensure smooth channels for private enterprises to voice concerns and articulate their demands. This will help streamline the process of unified issue reception, coordinated inter-departmental handling, and timely, consistent feedback on outcomes. (Relevant departments of local governments at all levels are responsible.)
  (9) Maintain a fair competition order. Eliminate unfair competitive practices by local government investment entities that leverage public resource advantages—such as municipal and road infrastructure—to impose restrictions on private enterprises operating in the fresh agricultural product distribution sector when applying to use these public resources. For projects involving fresh agricultural product distribution, such as wholesale markets or centralized public distribution centers, which are essential for ensuring urban operations, no hidden barriers should be erected under the pretext of low investment intensity or minimal tax contributions. Nor should discriminatory treatment be applied based on the ownership structure of the investing entities. (Relevant departments of local governments at all levels are responsible.)
  (10) Enhance local administrative governance. Standardize administrative law enforcement practices—except as explicitly permitted by laws and regulations—prohibit arbitrary punitive measures against businesses such as cutting off electricity, water, or gas supplies. Instead, strictly investigate and address cases where administrative authorities improperly interfere with companies' normal operations in violation of the law. Additionally, innovate service-oriented management models by strengthening integrated oversight over key areas like road transportation, distribution networks, delivery methods, vehicle markings, parking facilities, traffic control, and environmental protection. Ensure that penalties are not merely imposed without addressing the underlying issues, avoiding a "one-size-fits-all" approach to enforcement. (Department of Development and Reform, Ministry of Public Security, Ministry of Ecology and Environment, Ministry of Housing and Urban-Rural Development, Ministry of Transport, Ministry of Commerce, and State Administration for Market Regulation jointly responsible; relevant departments of local governments at all levels accountable.)
6. Supporting Enterprises to Grow and Thrive

(11) Strengthen planning and integrate public infrastructure. Local authorities should prioritize the development of fresh agricultural product distribution facilities as a key project aimed at improving people's livelihoods. They must carefully assess urban needs and development potential, enhance unified planning efforts, and avoid redundant investments in homogeneous projects that could lead to unhealthy competition. Additionally, governments should bolster the provision of public-benefit infrastructure, focusing on addressing critical gaps in fresh agricultural product distribution systems. Where feasible, regions may invest in essential facilities such as inspection and testing equipment, waste management systems, and IT infrastructure for wholesale agricultural markets. Furthermore, support should be extended—through appropriate subsidies—to help build primary processing, pre-cooling, storage, and grading facilities at farmers' markets and directly in fields, ensuring these public-benefit amenities are properly supported and significantly enhancing the overall infrastructure for fresh agricultural product distribution. (Relevant departments of local governments at all levels are responsible for implementation.)
  (12) Guide enterprises to integrate, upgrade, and enhance efficiency. Encourage companies to consolidate through mergers and acquisitions, strategic partnerships, and other means, while supporting government-backed platform companies in making equity investments based on market-oriented principles. Additionally, promote joint ventures where merchants and farmers pool resources to invest in and participate in the construction and operation of wholesale market projects. Foster fresh agricultural product distributors by encouraging them to extend their presence upstream and downstream, thereby building integrated agricultural supply chains that evolve from mere commodity aggregation platforms into comprehensive industry integration hubs. This will help these enterprises boost their service capabilities and strengthen their competitive edge across both production and distribution channels. Furthermore, guide businesses to intensify the adoption of standardized practices throughout all stages of the supply chain—such as inspection and testing, quality grading, labeling and packaging, and cold-chain logistics—ultimately leveraging standardized production and distribution processes to unlock brand value and drive premium pricing. (The Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, and the State Administration for Market Regulation are responsible for coordinating tasks; relevant departments of local governments at all levels will oversee implementation.)
  All regions and departments must fully recognize the importance of further optimizing the development environment and boosting the circulation of fresh agricultural products. They should strengthen organizational leadership, clarify task divisions, enhance coordination and collaboration, and, based on local realities, step up policy innovation and support efforts. This will help effectively address key challenges faced by market entities—especially private enterprises—in the fresh agricultural product distribution sector, ultimately fostering the healthy growth of the industry.

National Development and Reform Commission

Public   Department of Security

Finance   Ministry of Politics

Since However, the Resource Department

Alive Ministry of Ecology and Environment

Ministry of Housing and Urban-Rural Development

Submit Ministry of Transport

Agriculture Ministry of Agriculture and Rural Affairs

Business   Department of Affairs

Tax  General Administration Office

State Administration for Market Regulation

Silver  Securities and Futures Commission

May 24, 2020

Source: National Development and Reform Commission website