Zhejiang is China's largest export province, when the United States abuse of tariff policies stirred up the hurricane across the world, CCTV reporter came to Zhejiang, to visit the pressure of foreign trade enterprises. In the face of the US government's willful abuse of tariffs and unilateral bullying and coercion, Chinese foreign trade companies are not helpless, but actively adjust their strategies, explore domestic and foreign markets, and show strong resilience and innovation.
"The US tariff policy changes day by day, but our thinking is clear."
Keqiao, Shaoxing, Zhejiang Province, where the China Textile City is the world's largest textile distribution center. It was mid-morning, normally the busiest time of the day, and a little quiet.
Wu Yuanjin, the boss of Yahong Textile, told reporters that the US tariff policy has changed rapidly in recent days. "Now the price fluctuates so much, today this way, tomorrow that way, the contract has been negotiated, and then began to change."
Uncertainty, textile city bosses now have a deeper understanding of the word.
They said that when the tariff was increased to 34 percent, companies were maintaining normal production, but under the current tariff war, which has reached the limit, some production lines for exports to the United States have slowed production.
"Wait and see, many customers are now afraid to place orders easily."
Yang Wei, the head of Jincicada Fabric, gave a set of solid figures, and his company originally sent two or three containers of curtains to the United States every week, worth $400,000 to $500,000, but now because of the sudden change in tariff policy, it has suspended shipments.
How to face the current pressure?
"Price increases".
Yang Wei said that more than half of the top ten curtain products on the Amazon platform in the United States now come from Keqiao, so Chinese sellers have a certain bargaining power, and there is the possibility of hedging tariff costs by raising prices.
"If its tariffs remain so high and our goods in the United States gradually start to increase in price, we will definitely have to add this fee to the retail price."
At present, Yang Wei's company is negotiating with its partners to bear the cost of tariffs and try to offset the impact of tariff policies.
Wu Yuanjin, the head of Yahong Textile, said that because they had experienced the trade war in 2018, they were actually prepared for this sudden change.
"The U.S. policy is changing day by day, and the situation is messy, but our thinking is clear."
On the one hand, she worked with suppliers and customers to negotiate a solution, on the other hand, she made some new styles at the beginning of this year, and sent more staff to the sales team, and now she has found many new customers.
A pair of sister and brother operated curtain business, 90% of the order is the US market, they said that these days also experienced the morning up to see the tariff news suffering, but looking at the data on the cross-border e-commerce platform, they also strengthened their confidence.
"Production has not stopped, and goods continue to be sent, and it is difficult for the U.S. market to give up Chinese sellers."
The boss calculated an account: "Conservative estimates, the United States Amazon platform for every 10 packages of curtains sold, at least 5 packages from Keqiao, each sold a product platform will earn 15% commission, they are more afraid than we are out of stock."
"Fight risks with innovation"
In a fabric company, Luo Liqin, the person in charge, is busy decorating the clothing selection center to facilitate customers to intuitively feel the fabric. Above her store, a designer lab has been set up, and this year they have ramped up research and development and original designs, the person in charge said.
"The style of clothing pays attention to cultural empowerment, only in this way can we further improve the added value of products."
Wenzhou Desai Group has been doing foreign trade for 32 years, general manager Zhang Wenjie said, more than 30 years, the product has been upgraded countless times.
"What we do is relatively high-end, and American customers can't find a good alternative, they go to Vietnam, they go to Myanmar, Cambodia, including various countries in Southeast Asia, and finally find that many of the quality is not up to the standards of Chinese manufacturing."
A crisis is an opportunity.
"Challenges may also contain opportunities," Mr. Zhang said. "What we need to do now is to further improve quality and use innovation to counter risks."
The case of luggager-maker Ligor Holdings is even more instructive. In recent years, enterprises have gradually got rid of the original foundry model, and this year, by strengthening the original design, further improve the technical content and added value of products, which also gives them the confidence to respond to market changes.
"We also have our own design and development team, we have 21 patents on hand, and whether customers can find a 'replacement' as strong as us, that is a problem they need to solve." Business manager Jiang Liqi sounded confident.
In this interview, many business leaders said that the external uncertainty sounded the alarm for them, and industrial upgrading is imperative. This also confirms a truth, only out of low-end competition, innovation to build core competitiveness, in order to be invincible in the international trade changes.
"You can't put all your eggs in one basket"
"Eggs can not 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 many companies' exports, but now it is a consensus to accelerate the development of emerging markets.
When I met Yang Wei, general manager of Jincicada cloth, he was preparing to go to Kazakhstan, he showed the reporter his itinerary, and he has been on business several times in the recent month, in order to investigate the market potential of these regions and find new business opportunities.
More noteworthy is the deepening of the "internal and external double cycle".
On the one hand, enterprises such as Zhejiang Platinum Motor industry and trade build factories in Africa to layout overseas production capacity, on the other hand, deeply cultivate 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 fits in with the transformation direction of China's economy driven by domestic demand.
From fighting price to fighting value, from staring at Europe and the United States to expanding the world, from OEM labeling to independent innovation, behind this "sudden siege war" is the firm pace of Chinese manufacturing to the high-end of the industrial chain.
As one business leader in Zhejiang put it, "If you don't develop new markets, you don't have a chance." This spirit of active change is perhaps the biggest source of confidence for China's foreign trade to pass through the wind and waves.
"The country guards the overall situation, we protect the factory to do their own thing, all difficulties will always pass"
The initiative of enterprises to break through the encirclement is inseparable from the support of government departments.
In the investigation of CCTV reporters learned 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 RCEP certificate of origin application process, organizing more than 500 international exhibitions and other measures.
On April 11, the good goods brand launched in Yiwu signed two new stores in South Korea and Ecuador. At present, this new model has entered Kenya, Italy, Chile and other 11 countries, next, the collection store will also launch warehouse store in one, online store, interactive store and other upgraded versions.
He Lihong, president of Yiwu Brand Development Promotion Association, said that Yiwu is now exploring a new model, hoping to take root in each country with brand identity in more emerging markets around the world to increase trade competitiveness and anti-risk ability.
In addition, the customs "one to one" service, export credit insurance, special financing support and other policies, accurately help the affected industries, not only ease the short-term pressure, but also inject confidence in the long-term development of emerging markets.
In the words of these bosses, many business owners have mentioned a word: backing.
"The country is protecting the overall situation, and we are protecting 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 capabilities, Chinese foreign trade enterprises are not only expected to resolve the immediate tariff dilemma, but also likely to occupy a more active position in the reshaping of the global supply chain. After all, true competitiveness is never based on tariff protection, but on irreplaceable value.
Follow us for more info. wedding & event linen suppliers wholesale Readortex, official website and B2B online store