Anti-epidemic Warfare In Foreign Trade Needs To Find Opportunities In Crisis

Affected by the epidemic situation, this year's Chinese foreign trade production enterprises resumed work later than in previous years, coupled with poor logistics and transportation, the international exchange of personnel was blocked, resulting in a decline in the order fulfillment rate and certain impacts on imports and exports. From January to February, China's total foreign trade imports and exports totaled 4.12 trillion yuan, a decrease of 96% compared with the same period last year. Among them, exports from January to February showed a double-digit decline.

Just as the domestic epidemic has gradually entered the final stage, the epidemic has spread around the world and the international market has become more variable. Internal worries will be resolved, external difficulties will strike, and the uncertainty of China's foreign trade development environment is rising, facing a protracted war. How to make a long-term plan, look for opportunities in danger and stabilize the fundamentals of foreign trade is an important part of restoring domestic economic development and maintaining the stability of the global supply chain.

In order to help enterprises overcome difficulties and protect the vitality of market players, since the outbreak, the central and local governments have been active in ministry of medicine, and a series of support policies have been introduced, covering finance, taxation, finance, credit insurance, participation, legal assistance, and epidemic prevention material protection In all respects, the policy toolbox can be fully opened. China is bailing out foreign trade enterprises with extraordinary measures during special periods and escorting the stability of the global supply chain.

These measures have greatly promoted the speed of resumption of production and production of foreign trade enterprises. At present, key foreign trade enterprises in major foreign trade provinces and cities such as Zhejiang, Jiangsu, and Shanghai have all resumed work, and the resumption of production in other regions is also accelerating. However, while seeing the good momentum, we must also see that there are still many small and micro enterprises that have not fully enjoyed the preferential measures. The multiple problems such as the tight capital chain, poor materials, and shortage of personnel have not yet been fully resolved. In addition, the enterprises after the resumption of work have encountered difficulties in recovering funds. A recent survey of more than 7,000 foreign trade companies by the Ministry of Commerce revealed that more than 90% of companies have been delayed in shipping and foreign exchange collection, and faced a greater risk of buyers cancelling orders and refusing payment.

First of all, the most urgent task for stabilizing foreign trade is to fully implement the policies of supporting enterprises and benefiting enterprises such as finance, taxation, finance, and insurance, and to promote financial institutions to follow the principles of special affairs, emergency affairs, and urgent affairs. Start a fast review channel as soon as possible, simplify business processes, and allow troubled enterprises to get funds as soon as possible, help foreign trade entities, including small and micro enterprises, and foreign-funded enterprises, to use their policies well enough to gradually get out of trouble and restore vitality as soon as possible.

Secondly, it is necessary to accelerate the pace of opening up a diversified market. Under the epidemic situation, the country's situation is changing rapidly, and some foreign trade companies have a relatively simple market layout, lack the ability to develop markets, and have a high risk coefficient. Relevant departments and business associations should fully mobilize their resource advantages, collect and provide more market information, promote effective supply and demand docking, guide and help enterprises through online exhibitions, video consultations, etc., and accelerate the pace of opening up the international market in special ways at special times , By optimizing the business layout and reducing risks.

Third, we must further accelerate the development of new formats and new models such as cross-border e-commerce. According to the General Administration of Customs, imports through the customs cross-border e-commerce management platform reached 186.21 billion yuan in 2019, an increase of 383%, which has become China's new foreign trade growth point. Under the epidemic situation, cross-border e-commerce has played an important role as a platform for its logistics channels and overseas warehousing. However, there are also dilemmas such as inventory shortage and supply not keeping up. In recent years, China has been encouraging the exploration of new foreign trade formats and supporting enterprises to establish overseas warehouses. Under the epidemic situation, this step can be faster. In addition to encouraging enterprises to build overseas warehouses by themselves, they also have to play the role of comprehensive e-commerce pilot zone, and provide more overseas warehouse information services to help enterprises use overseas warehouses to expand exports. Finally, we must give full play to the initiative of foreign trade entities. With a guiding policy, companies are encouraged to take active actions, launch self-help, grasp the new demand and new changes created during the epidemic, accelerate their transformation and upgrading driven by technology and innovation, and enhance the endogenous development momentum of China's foreign trade to turn crises into opportunities.

Overall, foreign trade enterprises are more affected by the international market than other domestic enterprises, and they must be prepared for a protracted war. But at the same time, we must also see that China's foreign trade has great potential, sufficient resilience, and a solid industrial chain. With the support of macro policies and the efforts of micro-subjects, China's foreign trade has the conditions and confidence to stabilize the basic market and ensure the smooth operation of the industrial chain and supply chain.