We Will Promote The Integration Of Domestic And Foreign Trade And Promote High-quality Economic Development

Jan 04, 2024

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Not long ago, The State Council Information Office held a regular briefing on Measures to Accelerate the Integration of domestic and Foreign trade, pointing out that an important goal of the integration of domestic and foreign trade is to enable enterprises to smoothly switch between domestic and international markets according to changes in the market situation. Subsequently, the Zhejiang Provincial Department of Commerce announced the province's sixth batch of domestic and foreign trade integration "leader" enterprises, reform pilot industrial base cultivation and domestic and foreign trade integration typical case list, 83 enterprises, 8 reform pilot industrial bases and 11 typical cases shortlisted. Why is domestic and foreign trade integration important? What are the pain points and blocking points when actually landing? The reporter interviewed relevant enterprises, research institutions and government departments.

From the beginning to encourage Chinese enterprises to go global, to carry out healthy competition with foreign enterprises, and now put forward the "double cycle" to encourage and promote the prosperity of the domestic market, the focus of domestic and foreign trade integration has been iterated with the changes in the economic situation and the international pattern. According to the statistics of Zhejiang Provincial Department of Commerce, up to now, there are about 10,000 enterprises operating domestic and export business in the province, accounting for 12.3% of the total number of foreign trade enterprises; Among them, domestic sales accounted for between 20% and 80% of the enterprises about 3,000. Many respondents believe that the important opportunity period for the integration of domestic and foreign trade has opened. "In the past, China's dependence on foreign trade was high. In recent years, with the increasing uncertainty of the international political and economic environment and the cyclical transfer of the industrial chain, the importance of the domestic trade market as an economic engine has become increasingly apparent." Shi Wenlei, chairman of Zhejiang Textile Import and Export Group Co., LTD., believes that the core essence of promoting domestic and foreign trade integration is to promote the transformation of the national economic structure by encouraging the transformation of enterprises, and from the perspective of enterprises, it can also effectively balance the risk of exchange rate fluctuations and market changes.

Xue Tianhang, a researcher at the Regional Coordinated Development Research Center of Zhejiang University, also believes that the current promotion of domestic and foreign trade integration is very necessary and timely, "In the face of the scar effect of the epidemic, globalization and regionalization, China has encountered some impacts and difficulties in the dividend of participating in the global division of labor in the original way." With the integration of the global economy, domestic and foreign markets have gradually converged, and companies need to adapt to this change." At present, the export-oriented Hangzhou Superstar Technology Co., Ltd. has already done a lot of product research and development reserves, and laid offline distribution channels and vertical e-commerce platforms in advance in China. Chi Xiaoheng, president of the company, said that the potential of the domestic market has now emerged, and they will vigorously explore the domestic market in the next five years. In fact, over the years to promote the integration of domestic and foreign trade on our economy has been effective. Statistics show that since the outbreak of the international financial crisis in 2008, the contribution rate of domestic demand to China's economic growth has remained high, even exceeding 100% for seven years, and the growth of domestic demand has effectively made up for the impact of the decline in external demand.

Walking in Yiwu International Trade City, businessmen with different skin colors and accents shuttle between different districts, you can hardly tell whether this shop is doing domestic trade or foreign trade, or it is "all-consuming" domestic trade. "It's hard for me to figure out the proportion of domestic and foreign trade markets." In the market C zone Wei boss just finished talking about an order in Henan, took time to chat with reporters, their family originally only export toy business, last year found the domestic tourism market hot, quickly cut into the scenic spots customized crafts track. "In recent years, the foreign trade market has become more and more voluminous, foreign buyers have become more price sensitive, and profits have been declining, while the domestic market has grown well." The boss of the next street, Li, is more familiar with switching back and forth in a number of markets: a few years ago, he contracted the export market of wooden crafts, invested in the domestic tea business, and a few days ago, he went to a number of countries to jointly build the "Belt and Road" to find new market opportunities. "When doing business in an international trade city, the boundary between domestic and foreign trade is not so clear, the key is whether it can be truly marketable." Chen Zhixing, deputy general manager of the market operation company of Yiwu Mall Group, told reporters that the domestic trade share of Yiwu International Trade City will increase from about 35% to about 40% in 2023. A 5 percent change is a trend revealed by astute businessmen voting with their feet. How to be marketable? Different companies explore different paths.

For example, the main business of Zhejiang Textile Import and Export Group Co., Ltd. has two parts: importing textile raw materials, exporting fabrics and garments, which belong to the upstream and downstream of the industrial chain. Shi Wenlei told reporters that the company continues to deepen cooperation with industrial clusters at home and abroad through the clothing orders on hand, and continue to expand market share and optimize industrial structure by improving the industrial chain. At present, the proportion of textile raw materials imported by the company has risen from 20% to about 40%, and through the investigation of domestic demand, the development of domestic school uniforms, uniform business, "the original small short legs become longer, with two markets and two resources, for the development of enterprises is more stable." Hangzhou Star Technology Co., LTD., which accounts for only 5% of domestic sales, has focused on cultivating internal skills for many years, implementing the same line, the same standard and the same quality at the product end, constantly tapping domestic demand, and establishing brands, supply chains and channels. Today, the company has more than ten leading brands and self-built brands in Europe and the United States, and develops customized professional products for different categories and different national markets. Chi Xiaoheng said that with the continuous expansion of China's infrastructure in recent years, the pursuit of efficiency by professional workers continues to improve, and the rise of outdoor sports, she is full of confidence in the future market potential of domestic professional tools. "Enterprises should integrate themselves into the global value chain and supply chain system, and consider whether the talent team, brand building, supply chain and quality match the potential market on the basis of sufficient research." Zhejiang University School of Economics, secondary professor, doctoral supervisor Xiao Wen suggested.

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