Zhao Yumin: Why Is "Made In China" Worth Increasing After Returning Home?

Guests of this session:

Zhao Yumin, director of international marketing department, Ministry of Commerce

Wang Qidong, Deputy Secretary General of the Overseas Development Planning Association of the national development and Reform Commission

Mei Xinyu, doctoral of the Ministry of Commerce

Topic

With the popularity of IPAD in the world, why does this "made in China" product return to its domestic status? It has been reported for two consecutive days and has attracted wide attention.

Yesterday, the reporter invited Zhao Yumin, Wang Qidong and Mei Xinyu three authoritative experts to visit the "Southern Economic round table" to discuss this topic in depth, and hope to lay a smooth road for domestic sales in "made in China", not only to benefit domestic consumers, but also to maximize the interests of Chinese manufacturers at an early date.

Point of view statement

Why price doubled

Reporter: the same commodity is made in China, sold in China's local market, and far across the ocean to the developed western countries.

Zhao Yumin: the brand value is higher.

In my opinion, the value of these brands themselves is the accumulation of decades and centuries of inheritance, including social recognition, recognition and so on.

Secondly, although many products are made in China, they need to pay a very high import tariff after returning home. This is also a very important factor.

Plus some other taxes and fees in the middle, the price will be much higher than abroad.

Wang Qidong: better quality

Another reason why foreign products return to China's high import tariffs is to protect national industries.

Another reason is that the competitiveness of similar products has their own advantages and disadvantages.

This is also an important reason why many people are willing to choose foreign products.

The product of the other side is indeed stricter than that of our domestic product in material and quality inspection.

Mei Xinyu: "made in China" also needs to pay customs duties.

The price of clothing made in France and the United States in China is much higher than that in its home country, and the IPAD import tax, etc., shows the success of China's industrial development policy.

As to why the "made in China" price is lower than the domestic price, the main reason is that China is a large country of processing trade. Although the goods sold in Western shopping malls are "made in China" labels, they are usually finished at the two ends of raw materials and markets, but only in China.

Such a "made in China" product needs to pay certain tariffs if it wants to enter the domestic market. Tariffs alone are enough to make Chinese prices much higher than western prices.

Under the mode of processing trade, HugoBoss suits can be processed and finished in Chinese factories and can be sold on the market of western countries. But if we want to enter the Chinese market for sale, if we import the 61031100 tax number, we will have to pay 25% import tariffs according to the protocol of China's accession to the WTO.

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Divide

Is price difference a good thing or a bad thing?

Reporter: in your opinion, does this unbalanced price have a beneficial effect on the domestic economy or is it a negative influence?

Mei Xin Yu: whether in the domestic market or in foreign markets, in the field of monopolization of Western multinationals, it is advantageous for us to choose higher pricing for Western multinationals in order to make room for the newly started Chinese national industry.

In 1995, Unilever's wall's ice cream had crushed all the main local competitors in mainland China, and Chinese residents' spending power also improved significantly. The British executives of wall's decided to increase their prices by 26%. As a result, local manufacturers, such as Mengniu and Erie, used the cold chain technology learned from wall's long ago to squeeze into the market with the price advantage and quickly grow into a new giant in the Chinese market.

If the Western companies that occupy the leading edge choose to price only slightly higher or lower than Chinese domestic competitors, that will be a disaster for our national industry.

In the late 1990s, Unilever established a brand and price strategy in China for its mysterious detergent. It kept the brand image at the same time and lowered the price to about 10% of the Chinese local competitors. In 1999, the price was reduced by 30%, and the result was that the market share of the laundry detergent increased by 30% in six months.

Reporter: in your opinion, is customs collecting tariffs for IPAD really to earn a little bit of money, completely ignoring the interests of consumers?

Zhao Yumin: from the government's point of view, it is hoped not to give foreign brands such a large market, otherwise they will compete with similar products in the domestic enterprises. Once the domestic related industries are closed down, these products abroad will not continue to be so cheap.

And the collapse of enterprises will also cause a large number of people to lose their jobs, resulting in many other adverse effects.

With such a high tariff policy or a high tax and fee policy, there may be some consumers, especially high-end consumers, whose demand may not be satisfied. They have to spend a lot of money to obtain such consumer goods at home, or buy them directly abroad.

However, for domestic enterprises, they may get some preferential policies, which will benefit them.

Because their products can not compete with foreign brands under certain circumstances, but under the protection of policies, they can still survive in this market.

If foreign high-end products come in and prices drop, then the competition will be very bad for domestic brands.

Reporter: so in your view, consumers can only tolerate such inequality?

Zhao Yumin: as consumers, the choice of commodities is also based on their own conditions for different choices.

Compared with the rich and capable consumers, the target may be those foreign high-end products, but many mass consumers are still targeting the domestic consumer goods. China's foreign investment policy is more and more pparent, and the role of foreign investment in domestic economic development is also an encouragement, which is also a good choice for consumers.

Mei Xin Yu: under the framework of the industrial development policy, successful trade policies should focus on promoting the development of domestic industries and meeting the necessary consumption needs of domestic residents, rather than satisfying their vanity desire to pursue western brands.

At present, on the issue of IPAD import tax and other issues, it advocates opening up completely and even realizing the same price of Western luxury goods at home and abroad. Despite the banner of "consumer welfare", its essence is actually positioning the policy target to satisfy blindly pursuit of foreign fashion consumer goods, which is wrong.

Consensus

How to improve the awareness of independent brands?

Reporter: the government should not only take import tariffs to protect domestic enterprises, but also what measures should be taken to make the relevant industries grow faster, and for enterprises, how can we reach the level of contending with foreign enterprises as soon as possible?

Wang Qidong: on the one hand, the government reduces taxes and duty-free in terms of tax revenue, and then there are preferential policies, such as special funds, subsidies and other preferential policies, while supporting these local enterprises.

On the one hand, enterprises improve their quality and expand their scale effect, for example, the number of cars has increased from 1 million to 1 million 500 thousand to 2 million, but the employment has not changed and productivity has been increased.

The other way is to reduce circulation costs, such as government procurement, like WAL-MART.

At the same time, we should increase international exchanges and cultivate high-quality talents. These factors are very important, the state subsidies, or tax relief, the national preferential policies and so on.

Zhao Yumin: the support of the government lies at all levels. From the government's point of view, it encourages innovation, encourages the creation of independent brands, does not always imitate, gives them a policy system to encourage innovation, and also gives them some proper protection.

But the government should not over protect and introduce competition properly.

Because proper competition will bring pressure to enterprises.

Therefore, the government system should create a competitive environment that encourages innovation and creates power.

At the same time, in the aspect of enterprises, in this environment, they should be responsible for products and have a sense of survival in the market.

To provide consumers with products of high quality and low cost, they should have social responsibilities, be more pragmatic and have a sense of social responsibility in terms of business philosophy. They should not only have a profit goal only to earn money, but have a long-term process to build brands, and have to compete for brands. On the one hand, they can unite with foreign related products, and on the other hand, they should be more enterprising. They should not only absorb other people's technical expertise, but also have their own innovations, so as to form differentiated competition and let consumers have more choices, which is also a wisdom for enterprises to survive.