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Stabilizing foreign trade China's efforts to break through the "double cycle"

Date:2020-08-24  Hits:168
Li Yaowen, chairman of Hubei lierjia daily necessities Co., Ltd., is trying to develop new products to meet the needs of Chinese consumers, and plans to find more "online celebrities" to bring goods.

"Our company's export accounted for 70% and domestic sales only 30%. But now the economy in Europe and the United States is sluggish, and orders are decreasing, so they begin to focus on developing domestic sales and make up for export losses through the domestic market. " Li Yaowen told reporters.

The continuous epidemic has had a significant impact on the global economy and trade. Chinese foreign trade enterprises have found that compared with last year, it is more and more difficult to do business: not only is it difficult to obtain new orders, but also the delivery of orders in hand has been delayed or even cancelled due to the epidemic. In addition, some countries implement foreign exchange control measures, overseas customers delay, compress or even cancel orders, some customers are unable to pay for goods, goods are stranded in the warehouse and other problems, all of which bring pressure on the capital flow of enterprises.

Recently, China has made it clear that it is necessary to open up two domestic and international markets and resources, and gradually form a new development pattern with the domestic big cycle as the main body and the domestic and international dual circulation promoting each other. In this case, many foreign trade enterprises began to focus on the domestic market.

Keliton has set up a domestic sales team since 2011. The person in charge of the company told reporters that since 2019, the company's domestic sales business has been growing rapidly with the trend of short video, live broadcast with goods, etc., and the year-on-year growth rate from January to May this year is more than 50%. "Developing the local market is a good opportunity to reduce risks, especially in the current situation, which has a good decompression effect on enterprises."

"If there is no domestic market, it will be very difficult for us to survive this year," said Chen Cuihong, general manager of Shuangma Plastics Co., Ltd., which specializes in kitchen plastic products. The epidemic has led to the cancellation of a large number of overseas orders of the company, while the domestic market is extremely hot because a large number of consumers "live" at home to study delicious food, and many people buy online vegetable processors, shredders and other kitchen utensils. Therefore, the company resolutely focuses on expanding the domestic market. At present, the monthly sales volume of domestic market has exceeded 10 million yuan.

Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce of China, said in an interview with the reporter that China's super large-scale market has provided foreign trade enterprises with space to move around and "stay green mountains" under the situation of sluggish overseas demand and the impact of the epidemic situation, and a large number of high-quality goods exported for domestic sales will also help to enrich the domestic market Supply, give consumers more choices, further stimulate the vitality of the domestic market and effective demand.

However, it is not easy for foreign trade enterprises to get through the "double cycle". Gao Shiwang, director of the industry development department of the China Chamber of Commerce of machinery and electronics, said that if enterprises can "walk on two legs" in terms of export and domestic sales, some of the impact of the epidemic can be offset. "But some enterprises have been only engaged in foreign trade, not domestic trade, without relevant experience and foundation, so it is difficult to transform in the short term."

In addition to the lack of necessary channels, operation and after-sales, the problems of different quality standards certification at home and abroad also bring challenges to foreign trade enterprises to explore the domestic market.

It is worth noting that a series of measures have been launched to help enterprises cope with these problems. For example, Shanghai proposes to encourage e-commerce platforms to provide zero Commission, flow support, margin reduction and other preferential policies, and actively hold offline special sales exhibitions and sales activities; Alibaba, Jingdong, Suning and other major e-commerce platforms have also set up export product zones and special venues to open up exclusive sales channels for enterprises.

More supportive policies are coming soon. Li Danghui, deputy director general of the Consumption Promotion Department of the Ministry of Commerce of China, revealed that in the future, it will hold national consumption activities, expand domestic sales channels for export products, help foreign trade enterprises further connect with large domestic trade circulation enterprises and e-commerce platform enterprises, and promote the docking of supply and demand.

The General Administration of customs also said that it would further relax the time limit of tax collection for domestic sales and adjust the monthly declaration to the longest quarterly declaration. Zhejiang has greatly reduced the number of processing trade enterprises to handle domestic sales procedures and reduced the cost of domestic sales business.
 
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