Recently, the Municipal Bureau of Economics and Information Technology and the Municipal Bureau of Commerce jointly organized a special action to accurately serve foreign trade enterprises. Deputy Director Li Jianjun of the Municipal Bureau of Economics and Information Technology led a team to visit foreign trade companies such as Oubao Security, Ouyi Valve, Wanbang Footwear, and other foreign trade companies in Liandu District, organized a forum for foreign trade companies, and invited Hailufeng, Haihe Import and Export Company and Bojuxin in the development zone Materials, Victor Power Equipment, Founder Motor, Deming Automobile, Kanglong Steel, Youbang New Materials, Changfeng New Materials and other foreign trade companies participated in the symposium to understand the impact of Sino-US trade frictions on foreign trade companies, and combine the three service activities to do So precise assistance.
During the investigation, we learned that foreign trade companies in Liandu and the development zone are generally not affected by the Sino-US trade friction, and their production and operation conditions are normal. There are three main reasons:
One is that exports to the United States do not account for a high proportion of corporate exports, and are less affected by tariffs. Most of the surveyed companies' exports to the United States account for 0-20% of the company's exports, and the overall export to the United States is not large. In addition, there are not many products included in the 50 billion list and the 200 billion list, and they are not greatly affected by tariff shocks.
The second is that the company's products have strong competitiveness and low substitutability. Ruoubao Security Technology Co., Ltd.'s main products (door closers, fingerprint locks) are not very substitutable, and the transfer of American customers is slow. Due to the additional tariffs, American customers re-inquire prices in the whole market, and have competitive advantages It highlights that companies have increased their orders to the United States instead. Zhejiang Lishui Youbang New Materials Co., Ltd. stopped production for rectification due to the impact of environmental protection policies on domestic competing customers, and its export orders, including exports to the United States, increased by more than 20%.
Third, the cost of tariffs is not fully borne by the enterprise. For example, the export price of Kanglong Steel's products remains unchanged, and all tariffs are borne by American customers; Oubao Security Technology Co., Ltd. implements a shared tariff cost, and the Chinese side bears less than 50%.
From the survey, Sino-US trade friction is still the most important factor affecting the export of enterprises in 2019. The problems of increased tariffs resulting in reduced orders, unstable exchange rates, rising costs, and declining profits are still difficulties and problems that companies need to face. In order to deal with the Sino-US trade frictions, the current response measures taken by enterprises: First, open up other markets. Increase the proportion of exports from other countries and regions, and open up new markets such as the African market; at the same time, actively explore the domestic market and increase the proportion of domestic sales. The second is to accelerate technological research and development and process improvement. By improving product quality, increase product market share; through learning and transforming advanced production technology, increasing production capacity, reducing labor costs, thereby reducing product costs, and improving corporate competitiveness. The third is to strengthen communication with customers. Through good communication, sign an intentional purchase agreement as soon as possible to prevent potential variables. At the same time, control the production inventory to deal with the order products.