After the epidemic is released, what people are most looking forward to is the recovery of the domestic economy. Relevant experts and relevant departments in our country stated that the focus of driving economic growth in 2023 is domestic consumption. However, the rapid growth of domestic consumption will essentially exclude some foreign orders.
Therefore, the topic of the loss of my country’s foreign trade orders was once on the hot search list. Among these lost orders, orders from the high, middle and low-end markets were among them. So why exactly does this happen? Where have our foreign trade orders gone? How should our country prescribe the right medicine? Let’s look down.
1. Loss of foreign trade orders
Starting from October 2022, my country’s total import and export value has been declining for three consecutive months. In October 2022, China’s total import and export value fell by 0.4% year-on-year, and exports also fell by 0.3% year-on-year. Now that our country has implemented a liberalization policy, it stands to reason that foreign trade orders should increase, but the fact is that all the high, middle and low-end markets in our country have been lost. So why have our orders decreased?
Reason 1: Reduced foreign demand
The amount of foreign trade depends largely on the demand of the international market. The current decrease in orders is largely due to weakening external demand and insufficient international orders. Due to the impact of the epidemic, the world economy is currently developing downward as a whole. Even in developed countries such as Europe and the United States, which originally had relatively high economic strength, the purchasing power of their citizens has been suppressed.
Therefore, their demand for Chinese goods has been greatly reduced, which has led to a reduction in our country’s orders from the source, and subsequently led to the loss of our country’s high, middle and low-end markets. However, foreign demand is not only affected by the economy. Their reduced demand for Chinese goods may also be due to finding new suppliers of goods.
For example, my country once exported fitness equipment mainly to Taiwanese companies, but now foreign orders have been gradually transferred to Mexico and other regions. The reason is also very simple, that is because the local production environment is poor and labor costs are very low. In the context of a sluggish environment, foreign companies are also looking for ways to reduce costs. However, this is just an example. In addition to fitness equipment, some high-end and high-end markets have also gradually moved to countries with lower production costs such as the Philippines and India.
Reason 2: Our country’s economy has not yet fully recovered
One of the important reasons for implementing liberalization policies is to increase domestic economic growth. But now, not long after liberalization, it is still difficult for Chinese foreign trade companies to participate in various overseas exhibitions in a timely manner. Therefore, there is no way to open up new customers and accept new international orders in a short period of time.
Moreover, relevant departments have made it clear that the focus of domestic economic recovery is domestic consumption, which means that the foreign trade industry has been slightly ignored. So under such circumstances, how does our country prescribe the right medicine?
2. Methods to save the loss of foreign trade orders
Method 1: Open up surrounding markets
Chinese people often say that distant relatives are not as good as close neighbors, and this is also true in terms of economic development. ASEAN, which is relatively close to my country, is now my country’s largest trading partner. In the first ten months of 2022, the total trade value between China and ASEAN increased by more than 15%.
This means that our country has made it clear that ASEAN will be our main partner in the foreign trade market in the future. Therefore, if we want to save the loss of foreign trade orders, we can start from the surrounding markets. Opening up neighboring markets and stabilizing my country’s foreign trade orders means prescribing the right medicine.
Method 2: Assist the development of relevant enterprises
As mentioned above, due to the impact of the epidemic, it is still difficult for relevant Chinese companies to participate in various overseas exhibitions. Therefore, in the subsequent process of increasing orders, relevant departments can help companies successfully participate in outreach. Allowing enterprises to play a role in stimulating foreign customers to increase orders will not only help the development of relevant enterprises in my country, but also solve the problem of insufficient foreign trade orders in my country.
Method 3: Support cross-border e-commerce
As we all know, China is a country with extremely fast development of e-commerce industry, so in the e-commerce industry, our country has more advantages. In 2021, my country’s cross-border e-commerce import and export scale will reach 1.92 trillion yuan. Therefore, if you want to increase foreign trade orders, relevant departments can choose to vigorously support cross-border e-commerce, such as online Amazon, Alibaba International Station and other well-known platforms.
It is worth mentioning that the total number of comprehensive experimental zones for cross-border e-commerce in my country has reached more than 100. If it can still thrive in the future, then increasing foreign trade orders will not be a problem. In general, the increase in China’s foreign trade orders requires the assistance of relevant departments and the efforts of foreign trade companies and cross-border e-commerce entities.
3. Summary
If you want to stabilize your international economic position, import and export trade is very important. Although boosting domestic consumption is the main goal after the epidemic is relaxed, foreign orders are very important to the long-term development of our economy.It is important and must not be ignored. Therefore, in order to stimulate the growth of foreign trade orders, domestic entities and relevant national departments must also work together to contribute to China’s economy.
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