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Foreign Trade Breakthrough: Win The Future With Courage And Wisdom
Zhejiang is China's major export province. When the hurricane caused by the abuse of tariff policy by the United States swept the world, reporters came to Zhejiang to visit foreign trade enterprises under heavy pressure.
In the face of the US government's wanton abuse of tariff means and unilateral bullying, Chinese foreign trade enterprises are not helpless, but actively adjust their strategies, open up internal and external markets, and demonstrate strong resilience and innovation capabilities.
"The US tariff policy changes day by day, but our thinking is clear"
Keqiao, Shaoxing, Zhejiang Province, where the China Light Textile City is the world's largest textile distribution center. The reporter arrived in the morning. The busiest time of the day seemed quiet.
Wu Yuanjin, the boss of Yahong Textile, told the reporter that the US tariff policy has changed rapidly in recent days. "Now the price fluctuates so much that today it will change like this and tomorrow it will change like this. The contract has been negotiated and is beginning to change again."
Uncertainty, the owners of the textile city now have a deeper understanding of the word.
They told reporters that when the tariff was increased to 34%, enterprises were still maintaining normal production, but under the current tariff war, some production lines exporting to the United States have slowed down production.
"Let's wait and see. Many customers are afraid to place orders now".
Yang Wei, the person in charge of Jinchan Fabric Art, gave the reporter a group of solid figures. His company originally sent two or three containers of curtains to the United States every week, worth 400000 to 500000 dollars, but now because of the sudden change in tariff policy, the shipment has been suspended.
How to face the current pressure?
"Price increase".
Yang Wei told the reporter that more than half of the top ten enterprises of curtain products on the Amazon platform in the United States now come from Keqiao. Therefore, Chinese sellers have a certain bargaining power, and it is possible to hedge tariff cost increases by raising prices.
"If its tariff remains so high, the price of our goods in the United States will gradually rise, and we must add this cost to the retail price."
At present, Yang Wei's enterprises are talking with their partners about the way to bear the tariff cost, trying to offset the impact of the tariff policy.
Wu Yuanjin, the head of Yahong Textile, told reporters that they were actually prepared for this sudden change because they had experienced the trade war in 2018.
"The US policy is changing day by day and the situation is very chaotic, but our thinking is clear."
On the one hand, she worked with suppliers and customers to negotiate solutions. On the other hand, she made some new models at the beginning of this year, and sent additional sales team members. Now she has found many new customers.
A pair of brother and sister run curtain enterprises, 90% of their orders are from the US market. They said that these days they have also experienced the pain of watching tariff news in the early morning, but looking at the data on the cross-border e-commerce platform, they have also strengthened their confidence.
"The production has not stopped, and the goods continue to be delivered. It is difficult for the American market to give up the Chinese sellers."
The boss made a calculation for the reporter: "It is conservatively estimated that for every 10 bags of curtains sold on the Amazon platform in the United States, at least 5 bags come from Keqiao, and every product sold on the platform will earn 15% of the commission. They are more afraid of running out of goods than we are."
"Use innovation to fight against risks"
In a fabric enterprise, the person in charge Luo Liqin is busy renovating the ready to wear selection center, so that customers can intuitively feel the fabric. Upstairs of her store, a designer laboratory was set up. The person in charge said that this year they increased scientific research and development and original design.
"The style of clothing pays attention to cultural empowerment. Only in this way can the added value of products be further improved."
Wenzhou Desai Group has been engaged in foreign trade for 32 years. Zhang Wenjie, general manager, said that in more than 30 years, its products have been upgraded countless times.
"What we do is relatively high-end. American customers can't find a good alternative. They went to Vietnam, Myanmar, Cambodia, and other countries in Southeast Asia. Finally, they found that many of the quality could not meet the standards of Chinese manufacturing."
Crisis is also an opportunity.
Zhang Wenjie said, "There may also be opportunities in the challenges. What we need to do now is to further improve the quality and use innovation to combat risks."
The case of Lego Holdings, a luggage manufacturing enterprise, is more enlightening. In recent years, enterprises have gradually got rid of the original OEM mode. This year, they further improved the technical content and added value of products by strengthening original design, which also gives them the confidence to cope with market changes.
"We also have our own design and R&D team. We have 21 patents in our hands. Whether customers can find strong 'substitutes' like us is a problem they need to solve." Jiang Liqi, the business manager, spoke with confidence again.
In this interview, many enterprise leaders said that the external uncertainty has sounded an alarm for them, and industrial upgrading is imperative. This also confirms the truth that only by jumping out of low-end competition and building core competitiveness through innovation can we remain invincible in the changing situation of international trade.
"Eggs cannot be put in the same basket"
"Eggs cannot be put in one basket" - the mantra of Zhejiang enterprises is becoming a key strategy to deal with trade risks. In the past, the US market accounted for "half" of the exports of many enterprises, but now it is a consensus to accelerate the development of emerging markets.
When the reporter saw Yang Wei, the general manager of Jinchan Fabric Arts, he was preparing to go to Kazakhstan. He showed the reporter his itinerary. He had gone on several business trips in the recent month to investigate the market potential of these regions and find new business opportunities.
What deserves more attention is the deepening of "internal and external double circulation".
Zhejiang Platinum Industry and Trade and other enterprises, on the one hand, set up factories in Africa to lay out overseas production capacity, on the other hand, deeply plough into the domestic market, and plan to increase the proportion of domestic sales to more than 50%. This strategy of "walking on two legs" not only disperses external risks, but also conforms to the transformation direction of China's economy driven by domestic demand.
From price competition to value competition, from focusing on Europe and the United States to expanding the world, from OEM to independent innovation, behind this "breakthrough war", is the firm pace of China's manufacturing to the high-end of the industrial chain.
As a person in charge of an enterprise in Zhejiang said, "If we do not develop new markets, there will be no opportunities." This spirit of taking the initiative to seek change may be the best foundation for China's foreign trade to ride through the storm.
"The country protects the overall situation, and we protect the factory Do your own thing, and all difficulties will pass "
The active breakthrough of enterprises can not be achieved without the support of government departments.
The reporter learned from the survey that in the face of the new situation of foreign trade, Zhejiang Province has built a "fast lane" for enterprises to go to sea by expanding overseas brand collection stores, simplifying the application process for RCEP certificates of origin, organizing more than 500 international exhibitions and other measures.
On April 11, Yiwu launched the Goodwill brand Seabound Collection Store, which signed two new stores in South Korea and Ecuador. At present, this new model has entered 11 countries, including Kenya, Italy and Chile. Next, the collection store will also launch upgraded versions of warehouse store integration, online store and interactive store.
He Lihong, president of Zhejiang Yiwu Brand Development Promotion Association, told reporters that the new model Yiwu is exploring now hopes to take root in every country with the identity of brand in more emerging markets around the world, and increase its trade competitiveness and anti risk ability.
In addition, the customs' "one-on-one" service, export credit insurance, special financing support and other policies precisely help the industries that have been greatly impacted, which not only alleviates short-term pressure, but also injects confidence in long-term development of emerging markets.
In the interview, many enterprise bosses mentioned one word with the reporter: backing.
"The country is guarding the overall situation, and we are guarding the factory. Do your own thing, and all difficulties will pass."
In the future, with the construction of a new development pattern and the improvement of innovation ability, Chinese foreign trade enterprises are not only expected to solve the current tariff dilemma, but also to take a more active position in the reshaping of the global supply chain.
After all, real competitiveness never depends on tariff protection, but on irreplaceable value.
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