Feng Zhiliang talks about the survival situation faced by small and medium-sized foreign trade enterprises in Beishou

The tide of reform and opening up has surged, creating a Chinese miracle that has attracted worldwide attention. As one of our three carriages, foreign trade economy has made outstanding contributions to our country's economy. However, in recent years, the foreign trade situation has been unclear. Data released by the General Administration of Customs show that China's import and export growth in 2019 was lower than the target set at the beginning of the year. It was also the third consecutive year that it failed to meet the expected foreign trade target.
On the other hand, foreign trade companies that have made outstanding contributions to China's foreign trade economy mostly live on the edge of precarity based on their models, which has created development resistance to the innovative growth of China's foreign trade. The bottlenecks in the development of foreign trade enterprises are caused by the impact of the macroeconomic environment, as well as the problems of the enterprises themselves. These include
The increase in cost factors weakens the price competitive advantage
At present, the labor cost of my country's textile industry is on average three times higher than that of Southeast Asian countries, and the cost of cotton is more than 10 times higher than that of Southeast Asian countries. It is understood that the labor cost in Bangladesh is yuan/hour, in Cambodia it is yuan/hour, in Vietnam it is yuan/hour, and in my country it is yuan/hour.
According to the "Vietnam Daily" report, after about 20 years, Vietnam and other Southeast Asian countries are expected to become the new world factories, and this is mainly due to the cheap labor of Vietnam and other Southeast Asian countries and their important role in the world map. Strategic location, for this reason, Vietnam has begun to prepare to become the world's factory. However, China's low-cost foreign trade advantage is no longer enough to constitute a strong competitive advantage for Chinese manufacturing.
RMB appreciation increases pressure on foreign trade operations
Ministry of Commerce spokesperson Shen Danyang said on Monday that my country's monthly exports declined mainly due to weak external demand, passive appreciation of the RMB and sluggish commodities. The current situation facing foreign trade is very severe. He said that it is not only caused by the weak global economic recovery and sluggish external demand, but also by factors such as rising domestic factor costs. Not only that, the world's major non-USD currencies, including the Japanese yen, the euro, and the ruble, have generally depreciated, while the RMB has basically remained stable. This has objectively weakened the competitive advantage of my country's export commodities, increased the foreign exchange collection risks of enterprises, and increased the risks of foreign trade enterprises. operating pressure.
Difficulty in financing, a stubborn problem in the development of export-oriented small and medium-sized enterprises
Difficulty in financing and expensive financing are bottlenecks that plague the development of enterprises. Although our country has continuously introduced policies to promote financial services to increase services for small and medium-sized enterprises, because small and medium-sized enterprises themselves have accounts There is still a long way to go to solve the financing bottleneck of small and medium-sized enterprises due to weaknesses such as opacity, lack of effective collateral, and commercial banks' profit considerations.
Overcapacity requires new markets
Since the reform and opening up, a large number of factories have been built to integrate into the world economic development trend, resulting in a more prominent problem faced by small and medium-sized enterprises today. The overall economy is overcapacity and overcapacity. After a long period of extensive development, China's manufacturing industry has entered a critical period of ups and downs. According to relevant statistics, among industrial enterprises, every industrial industry already has overcapacity. China's consumer market is already overloaded and it needs to take steps toward big and good new markets such as Europe and the United States.
Lack of core competitiveness such as independent brand innovative products
Enterprises still have four major problems in shaping their core competitiveness. First, the ability of independent innovation is still insufficient, key core technologies are controlled by others, and Chinese manufacturing is still at the middle and low end of the value chain. Second, the brand quality level is not high enough, there is a lack of internationally influential large-scale multinational companies and brand enterprises, and quality incidents occur from time to time. Third, the industrial structure is not yet reasonable. There is homogeneous competition in the industrial layout in various places. The industrial level and core competitiveness need to be improved urgently. Fourth, the channels are not smooth enough, and there is no real formation of an efficient market and consumer-oriented market with enterprises as the main body. Marketing channels. Chinese companies are faced with the dilemma of diminishing low-cost advantages and yet to form new competitive advantages.
To sum up, small and medium-sized foreign trade companies face multiple obstacles such as increased costs, small markets, and lack of funds, which ultimately leads to the gradual increase in the difficulty of obtaining orders in cross-border trade. At the same time, the lack of core competitiveness of the company's internal brands is exacerbated. It reduces the difficulty of order closing for foreign trade companies.