Foreign Trade Enterprises, Open Self Rescue! Textile Printing And Dyeing Boss: Change Plan, Live Well!

Just past March, Zhu Xuefeng was the busiest 31 day for 15 years in the foreign trade industry.

Receiving foreign customers' requests for cancellation or suspension of orders, mail and phone calls to domestic suppliers.

At least 50 countries have entered a state of emergency as the global new crown pneumonia epidemic continues to spread. Many countries close the sea and land border ports. Cargo flights and port loading and unloading cargo must be examined and approved. The risk of foreign trade enterprises suddenly increased.

With the help of the government, foreign trade people like Zhu Xuefeng who want the company to survive have opened a self rescue operation.

Ten or twenty reminder calls per day

"Compared with the same period last year, a seventy or eighty reduction", Jiangsu fabric exporter Zhu Xuefeng March orders fell sharply. Previously, his finished fabrics were exported to many garment factories in Germany, France, Britain, the United States, Japan and many other countries.

And the list that has been received is cancelled or suspended by foreign customers. Compared with the list that has not been started, half of the fabric processing is required to be cancelled.

"All the costs and expenses that have been generated have been wasted." Zhu Xuefeng introduced that foreign customers would pay only 90 days after signing the order. In the meantime, Zhu Xuefeng needs to work with suppliers of semi finished fabrics, and export raw materials into finished products, and there is a 30 day period between them and suppliers.

"Once the chain is broken, I will have a chain reaction." Zhu Xuefeng said that some orders had gone from the original cloth to the dyeing stage, and the customer suddenly cancelled the order and faced with high losses. It is estimated that there is a similar order of about 8 million yuan, which means Zhu Xuefeng has to pay 2 million 400 thousand yuan supplier.

"These days are busy borrowing and lending everywhere", reporters and Zhu Xuefeng's interview was postponed two times, "from the end of the month to the beginning of the month, suppliers will come to collect money, ten or twenty calls a day".

Zhu Xuefeng told reporters that the amount of money owed to suppliers in the industry will be paid, usually determined by the strength and integrity of trading companies.

"Strong, good faith, give yourself, strength is not strong, integrity is not very good, may be down, money is also dragged away. We belong to good faith, and want to continue to do so. Now we borrow money from relatives and friends and use house to lend money.

In addition, some customers also asked Zhu Xuefeng to cut the volume of goods originally signed. The spread of the international epidemic has added a layer of uncertainty to the "suspended production" order. Customers can not give a time to determine the restart of production, and the trading companies and factories can only wait. For the clothing industry that pays attention to seasonal and fashion trends, it is even worse. "Will customers use these products in the next quarter?"

Two weeks, from Crazy reminder to order suspension.

Recalling the experience of these days, Zhu Xuefeng sighed that the epidemic was developing too fast, and the impact on the foreign trade industry was too big, and the radiation area was too broad.

From the crazy reminder to the order suspension, only two weeks later, Zhu Xuefeng did not expect the reversal to come so fast.

In March 10th, he received an order from a British customer. Zhu Xuefeng had no idea, and was afraid that the order would be stolen. He carefully inquired whether the client was affected by the epidemic.

"The customer said that there was no problem. I would not cancel the order. Let me hurry up. The delivery date is late, and the air freight will be claimed. So we rush to catch up.

On the 24 th, the customer sent an email asking for "all pause". At this point, the embryo cloth has been coloured, and the cost of more than 30 invested has also been flowing out with the machine pressing the "start" button.

Li Xiang, who has been engaged in export trade in Guangdong for 15 years, feels the same way. He told reporters that the decline of business is normal. The impact of export trade in the past is mostly "gradual", such as trade wars among countries, anti-dumping policies and fluctuations in exchange rate, but the impact of this epidemic is "sudden" and "first encounter".

Li Xiang's trading company mainly exports electronics and health products, and exports to Europe and the Middle East countries, such as the United States, India, Dubai, etc., with an annual export volume of about eighty million. During the Spring Festival, he went to Dubai and returned to China in mid February. At that time, the epidemic had not yet spread around the world, and the company's orders had not yet been affected. But after returning to China for a week, "everything has changed".

Since its resumption in February 26th, the company has focused its efforts on coordinating the factory's pre production orders, and all orders in the second quarter have been suspended.

"The thing to do now is to hasten the delivery of the goods, and the sooner the better, because we don't know what will happen next."

Li Xiang judged that the more serious impact will start in April, and "estimate at least sixty or seventy of the performance."

The global epidemic has slowed down the overall pace of development of foreign trade enterprises, and many enterprises can not even survive this "cold winter".

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From 2020 to March, the volume of registration of import and export enterprises decreased by 15.9% compared to the same period in March. Enterprise check and supply map

According to data from enterprises, as of March 27, 2020, the number of China's import and export enterprises was more than 6 million 410 thousand, of which there were 520 enterprises in the industry. From January 2020 to March, the volume of registration of import and export enterprises decreased by 15.9% compared to the same period last year. During this period, there are also 3.7 or more import and export enterprises cancelled or revoked.

Conversion of medical supplies? Hard!

The epidemic situation led to the shortage of epidemic prevention materials in various countries. Liu Feng, who is in charge of foreign trade operations, told reporters that the background of Chinese manufacturing network pay members can see that since January 2020, the search volume of "Mask" and "mask machine" has increased sharply in countries and regions outside the mainland of China.

Under the draught, many foreign trade enterprises want to export medical materials such as transformation masks, protective clothing, mask masks and respirators.

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Since January 2020, the volume of "Mask" and "mask machine" made in China has increased dramatically. Respondents for map

Li Xiang told reporters that recently, many foreign customers asked him to buy masks, and he did not take into account the transformation, "do not have done business, now temporarily turn too late" by looking for manufacturers with good domestic qualifications.

He explained that the standard of exporting such medical materials was very high. Previously, people engaged in foreign trade were not professional. If suddenly transformed, they would be unable to export because of quality and standard problems. In addition, under the current situation of prevention and control, most international flights have been suspended, and the transportation of medical materials is also more difficult.

"In fact, the idea is right, but the reality is not so simple as it is imagined." Zhu Xuefeng expressed the same view. "The so-called transformation is actually a few enterprises doing so."

A factory invested by Zhu Xuefeng has already produced the fabric of civilian protective clothing. "We have not done it now, and now we need medical treatment. We have no qualification."

He told reporters that the raw materials used for producing medical masks and protective clothing were either too high in price or uneven in quality. "After all, it is a matter of human life. I am not going to be a medical treatment."

The policy has been tightened. The three departments of the Ministry of Commerce, the General Administration of customs and the State Administration of Drug Administration jointly issued the document. From April 1st onwards, enterprises exporting new coronavirus reagents, medical masks, medical protective clothing, respirators and infrared thermometers must submit written or electronic declarations to the customs when they declare to the customs. Quality standard requirements.

"Living" is the first important thing.

In the face of adversity, foreign businessmen who want to survive have opened a self rescue operation.

Li Chao runs a small industrial machinery manufacturing enterprise in Shandong, mainly air compressor, export countries including India, Turkey, Mexico, Russia, South Africa and so on. Since March, the company has not received any foreign orders. After the factory resumed work in February 19th, it was only completing the order task that was signed years ago. Affected by the international epidemic situation and exchange rate, there are 98 machines which can not be issued on hand, "70% of the final payment is not paid, about 950 thousand."

The product air compressor exported by Li Chao belongs to a general machinery, and 80% of factories need it as a matching equipment. He intends to transform part of his business into domestic sales.

"This is a challenge of 0 to 1," Li Chao said. The company has not yet touched the domestic market, and has not yet mastered the development of the domestic market, including pricing power, and even the name of the Chinese brand.

At the same time, Li Chao wants to continue to work in the foreign trade industry. "Take advantage of this opportunity to practice internal strength" and check all aspects of the company's deficiencies.

Li Xiang made preparations for not making money this year. He claimed to have seen "big storms", he told reporters that "alive" is the first important thing, followed by "living well" and "everyone living well".

For self-help, he said that large enterprises, especially large growth enterprises, are facing more pressure and difficulties at the moment. Li Xiang suggested that peers should first reduce their expenses, and at the same time, return the funds as soon as possible, and classify the customers in different countries with different severity of the epidemic situation, do the following client plan, maintain the customers with high prestige, and maintain the liquidity of the business.

"It's good to be able to support this year," Zhu Xuefeng said. There are individual peers who want to quit, and companies do not. Zhu Xuefeng calls them "extremists".

In addition to reimbursement to suppliers, Zhu Xuefeng also wrote a commitment to quality suppliers, indicating that the loss caused by the delay in the payment will be compensated in future orders. They are communicating with their customers for the losses caused by cancelling or suspending orders, hoping that the other party will share the appropriate proportion of the loan with themselves.

For employees, Zhu Xuefeng said, at present can only try to pacify, through communication, March wages 80%. Taking into account the current order situation, it is expected that the company will stop working in April 10th, and he intends to give employees a holiday. "At that time, we can only follow the minimum wage in Kunshan."

State related departments and local governments are also concerned about the plight of the foreign trade industry. Measures such as tax relief, emergency loan and deferred tax payment were adopted.

According to the data of the State Administration of Taxation, since the implementation of the export tax rebate facilitation in February 10th, the national tax authorities have handled nearly 204 billion export tax rebates for nearly 230 thousand export enterprises.

The Ministry of Finance and the Ministry of transport announced that the port construction cost of import and export goods should be exempted and the oil pollution damage compensation fund reduced by half from March 1st to 24 June 30th.

Some foreign trade provinces have joined in helping action. For example, Zhejiang has introduced 10 measures to help foreign trade enterprises tide over difficulties, including guiding foreign trade enterprises to make good use of preferential policies such as 5 billion yuan emergency loans for import and Export Bank Zhejiang branch, 30 billion yuan loan for legal person banks, 3 month interest reduction and other preferential policies. (Li Xiang is a pseudonym)