What Is The Way Out For Chinese Export Enterprises?

Since China's accession to the WTO, as China's products have penetrated all over the world, China has shifted from trading power to trading power, and trade friction with other countries has also been increasing. Every country has launched anti-dumping duties to protect its industries. China has become the most anti-dumping measure among WTO members.

For a long time, Chinese export enterprises have been passively beaten in the dumping and anti-dumping of international trade.

However, there are also reasons for our own business.

Cheap labor and raw material prices are the natural comparative advantages of China's labor-intensive products. However, domestic export enterprises always take the principle of "small profits but quick turnover" as the guiding principle, take price competition as a means to seize the market, and compete with each other inside the market. In spite of the low price export of the international market, the advantage is turned into a dead hole, and the profits are mediocre and become the biggest victims of anti-dumping.

For a long time, a great feature of China's economic development mode is the export oriented development mode, and the OEM production characterized by labor intensive is the main form of the rapid development of most export enterprises in the early years.

Thanks to cheap labor, cheap and cheap Chinese made products can be sold all over the world.

However, a product, an enterprise has been successful and profitable, and there are numerous market entrants. The number of enterprises that have the right to export business has increased from about ten in that year to about 36 now.

Export enterprises began to compete for price, export volume increased, but prices fell more. Enterprises barely survived by tax rebate.

With the increase of competitive cost and the decrease of profits, many enterprises can only reduce the production cost. Chinese manufacturing has printed signs of cheap and inferior quality in the minds of many foreign consumers.

Vicious competition has caused serious waste of resources and damaged the interests of the state in the resource export industry.

Excessive competition and falling prices forced us to occupy the market, and consequently we were forced to withdraw from anti-dumping measures.

The state has promulgated relevant macro-control policies to restrict export enterprises, especially resource export enterprises and low value-added industries, in order to cope with the pressure of international trade environment. It aims at adjusting and standardizing the long-term development mode of export enterprises, reducing waste and pollution of resources, and once again "shuffle" for export enterprises in the long run.

With the rising price of raw materials, the exchange rate of RMB against the US dollar has risen, profits have declined, and the export tax rebate rate has been reduced. China's export enterprises are suffering from internal and external troubles. Only by innovating and improving the added value of export products can we open up a new road of rapid development.

Through the experience of foreign countries, I feel deeply in the process of academic investigation. As long as mentioning China made, Chinatown is reminiscent of a small portal cheap merchandise store, and a pile of low-priced goods stacked on the ground is hard to get a good location in the hearts of foreign consumers.

If they want to use them for a long time or to furnishings for their homes, they will not think of buying "made in China". On the contrary, some even reject them, because that means cheap.

In the consumer goods export industry, as OEM produces "bases", we earn nothing, while foreign brand owners can scrape most of their profits into the bag.

Why can't we benefit from our profound historical and cultural heritage, create our own brand, increase the added value, change the image made in China, and the international image of our country?

Of course, the road to brand development and operation requires strong design capability, technological process and management level.

Zhang Ruimin quoted as saying: "setting up a brand is certainly a very difficult task," Zhang Ruimin said. "But if you don't take this road, you will always work for others and earn the lowest profits."

"China's creation" is the way to win.

Faced with internal worries, enterprises should change their minds. Exports, especially low value-added products, are not the only way out.

Enterprises should gradually increase their own brand building, technological innovation, improve the standard of technological process and increase the added value of products.

1. enhancing the added value of the product is a difficult but necessary way. It involves the adjustment of enterprise strategy and the intensive management strategy of "quality win" and "technology win". Enterprises should make great efforts in product quality, brand value added, cost control and channel construction.

Adjusting product mix, selecting products with profit and technological innovation space, and striving to compete with competitors' competitors, can effectively avoid the irregular behaviors such as competitive price reduction, low price bidding and so on, and create a good industrial atmosphere for technological competition and product competition.

Product competition can promote the industry atmosphere, product competition can promote the development of the industry, not just duplication and replication.

And then create more profits than OEM to cope with the further changes in the strategic adjustment of enterprises. From ODM and BOM, brand products are more profitable than OEM.

Strengthening brand management and improving the quality of export products, brand is the pass of products, and is the requisites for enterprises to occupy the market for a long time, and quality is the foundation of brand.

China's main export markets are concentrated in countries such as the United States, the European Union and other countries that require high quality products. In recent years, these countries have often raised the requirements of product safety standards to restrict China's export products.

Therefore, experts believe that "quality win" is the direction for export enterprises in the future. At the same time, we must change the original marketing concept centered on price competition, and focus on improving the market share with the combination of new product development, product packaging, advertising promotion, public relations and service quality improvement.

We should optimize the structure of export products and learn to use various non price competition measures such as trademarks, packaging, advertising and public relations to improve the grade, added value and technical content of export products, develop high-tech products, and enhance the competitiveness of products by diversifying export products.

In the long run, it is also conducive to pnational technical barriers.

2. strengthening services has always been a very difficult road to implement. From the increase and improvement of services, the price of products has increased correspondingly, so that customers think it is worth and reassuring.

First of all, we need to know the service needs of different customers and what kind of services the enterprises can provide.

This can not only develop customer relationship management, but also promote the integration of logistics channels to a certain extent.

3. export is not the only way out. Under the situation of severe export situation and declining profits, enterprises can conduct market research and analysis, and try to turn their attention to China according to their own circumstances.

Many export enterprises have made preparations for both internal and external sales.

The reduction of the export rebate rate will also speed up the survival of the fittest in the export products industry, further optimize the resources and R & D of the industry, and promote the healthy development of the industry.

Participating in overseas market competition forces enterprises to innovate, improve and perfect services, and at the same time can increase sales in the Chinese market, expand the domestic market and become more competitive.

In recent years, China's export enterprises are frequently beset by non-tariff barriers such as anti-dumping litigation and green environmental standards.

In the past, because of the imperfection of the export management system, it was often seen that some commodities were marketable abroad, and domestic ports were rushing to the top. The rapid increase in the short term was also easy to give people the impression of dumping.

In fact, many countries' anti-dumping laws regard the apparent increase in imports as an important factor to consider the existence of dumping or industrial damage.

Most of China's export enterprises are small and medium-sized enterprises, with the export volume of hundreds of thousands and millions of dollars. Most of the enterprises concerned have chosen to give up, do not sue or respond to complaints because of the long time of anti-dumping investigation, the dim prospect of winning the lawsuit, the huge cost of manpower, material resources and financial resources.

Moreover, many enterprises do not have strong awareness of laws and rules, lack of self-protection awareness, and objectively lack the funds for litigation and anti dumping talents. Therefore, it is common to be afraid of litigation and dare not to sue, which is equivalent to recognition of dumping.

In many cases, unfair treatment has been made, but it still has to suffer huge losses in vain.

This led directly to the withdrawal of many enterprises from the market of import and export, triggering a chain reaction, and importing countries or other countries to increase anti-dumping investigations on related commodities, and to encourage their abuse of anti-dumping weapons.

In order to alleviate the pressure of foreign aggression, China's export enterprises should: 1. improve the initiative of enterprises to respond to complaints and actively strive for market economy status to compete in the international market. Enterprises must actively learn and master the laws of international trade, and strengthen self-protection and self-development awareness.

In the face of anti-dumping, only active and resolute participation in litigation and indomitable struggle can Chinese exporters hope to keep the original market, and must not destroy their market prospects for fear of international lawsuits.

Who responds to it will benefit.

Facts show that the positive response to anti-dumping will bring significant economic benefits.

Since November 1996, Baosteel filed suit against us heavy steel plate anti-dumping. Up to now, Baosteel has filed more than 10 foreign anti-dumping cases, and the overall winning rate has reached 90%.

It is reported that if the 10 anti-dumping accusations are established and high tariffs are imposed, Baosteel will be forced to reduce more than 40 tons of exported steel every year and lose nearly 150 million yuan in foreign exchange earnings.

2. unity and solidarity play a role in the role of trade associations. Litigation involves a wide range. The amount of litigation is high and the duration is long.

In 2000, the case of China's apple juice industry responding to the United States anti-dumping case showed that similar enterprises and even related enterprises should unite and share the same interests for common interests.

Under the organization of the chamber of Commerce, the apple juice industry deeply feels that the way of decentralized operation, mutual inventilation and low price bidding has endangered the development and even survival of the industry in the past. For the first time, we sat together to discuss the industry development plan. In the long run, we consciously took self-discipline action, and every enterprise was very good at restricting its price and sales behavior, which made a great change in the situation and saved unnecessary losses.

3. accelerate the adoption of international standards and product certification, and enhance the competitiveness of the enterprises themselves in the international market. China's substandard export products have attracted widespread attention, and European, North American and Asian countries have continuously reported news of manufacturing products, food and pet food imported from China which do not meet safety standards or harmful health.

Apart from part of the vicious competition and bad business ethics in China's export industry, technical standards have become one of the best tools for developed countries to protect their own markets, occupy the international market and gain the greatest economic benefits, and weaken the cost advantages of developing countries with technical barriers.

Traditional high tariffs and quotas can be adjusted, negotiated, cut down and cancelled by political and economic effects, but strict technical standards seem to follow and improve in a rational way for the interests of consumers.

The more restrictive and more difficult technical barriers made by this safety standard and patented technology bring greater restrictions.

This technical barrier has a direct and potential impact on China's exports more than 50 billion US dollars a year, which weakens the competitiveness of Chinese products in the international market.

"Because many technical standards of our country fail to reach the technical standards of developed countries, they are subject to more and more restrictions and become obstacles to expanding exports. In terms of imports, due to the fact that China's technical standards are not perfect and unified, and backward in technical means, it is difficult to achieve a reasonable and effective protection of the national industry."

Xu Guanhua, Minister of science and technology, pointed out that the implementation of the technical standard strategy and the establishment of a technical trade measure system that is consistent with the WTO rules and is effective and reasonable in protecting China's industry and market and national security has become a pressing matter of the moment.

For export production enterprises, we should speed up the adoption of international standards, conscientiously collect and study the technical regulations, standards, inspection and certification systems of various countries and international organizations, thoroughly study the contents related to the export products of our enterprises, and formulate them into our own product standards, and organize production according to standards, so that our products can have the ability to break through the trade barriers of importers.

4., importing advanced technology and strengthening cooperation with foreign enterprises, domestic export enterprises should strengthen cooperation with foreign enterprises, which will help enterprises to cross the dynamic technical standards and other "green trade barriers".

If we can make use of foreign direct investment or indirect investment, we can make use of such measures as joint venture, sole proprietorship, acquisition and merger.