General

Although China has been greatly affected by the pandemic for three years, its economic development has been improved. Now that the epidemic has come to an end, after China unlocks epidemic control, it will also open its doors to the world and usher in a new stage of development.

However, surprisingly, after China opened its doors, a strange phenomenon emerged, where a large number of foreign trade orders were now much fewer. The almost complete failure of the high, middle, and low-end markets has attracted people's attention. Can we only rely on domestic consumers?

1、 Reduction in foreign trade orders

The sudden emergence of the epidemic has caught countries around the world off guard. And because of its strong infectivity, it has also caused a significant impact on the economies of various countries. China, as an early country to discover COVID-19, has not been spared.

However, thanks to the rapid issuance of relevant policies, institutions at all levels have responded appropriately, allowing the spread of the epidemic to be controlled. In a short period of time, China has achieved a resumption of work and production, while other countries are still struggling with the epidemic at this time.

As a result, many factories in China have become targets overseas, with a large influx of industrial and foreign trade orders, which has also provided opportunities for the development of Chinese industry. With this wave of power, the Chinese economy quickly rose to the forefront of the world.

With the gradual decline in the pathogenicity of COVID-19, other countries have also liberalized their control policies, but at this time China's control measures are still very strict. This has also led to a gradual decrease in orders placed by foreign countries to China, but it still allows factories to produce for a long time.

2、 Almost all markets have fallen apart

However, as more and more countries reduce their control over the epidemic, China has still not relaxed its control measures, which has also missed a good opportunity to develop foreign trade. Until last year, China introduced a new policy that completely opened its doors to welcome countries around the world.

I originally thought that after the cancellation of control measures, it would further increase the volume of foreign trade orders. But surprisingly, foreign trade orders have actually decreased. Even many factories do not have a single order and can only give workers a break to go home and rest.

And the decrease in foreign trade orders, not only in low-end manufacturing, but also in mid to high-end manufacturing, has led to a sharp decline in orders, which can be said to be a comprehensive failure of the entire market. In order to restart the factory, many factory owners have gone abroad to do business.

Recently, some provinces have also dispatched negotiation teams to various countries around the world to solicit orders for their local factories. However, these seemingly magnificent actions did not achieve much success in the end, only obtaining a few orders.

3、 Where have the foreign trade orders gone

So what caused a significant decrease in China's foreign trade orders, and where did these foreign trade orders go? The main reason is that everyone is running out of money, and the decline in consumption power has led to a decrease in the data of foreign trade orders.

Since the beginning of this year, there have been serious financial thunderstorms in the European and American regions. First, Silicon Valley Bank in the United States went bankrupt due to inability to redeem depositors' deposits, and then Credit Suisse, which has a hundred year history, was acquired, triggering a series of financial risks.

This has also led to severe currency depreciation in the European and American regions, with the most crucial being the continuous interest rate hikes by the Federal Reserve, exacerbating the inflation problem and transferring it to countries around the world. At present, the inflation rate in the European region has reached 7.0%, which is already a relatively low value.

As a result, the personal assets of local residents have severely depreciated, and prices have continued to rise, ultimately triggering a decline in people's consumption desire. When these situations are reflected in the international market, they will result in a decrease in orders sent to China.

4、 Do we rely on domestic consumers?

Faced with the current situation in domestic factories, China naturally cannot watch things happen and remain indifferent. As a crisis, it is also an opportunity to completely change China's industrial and manufacturing industries.

Although almost all of the high, middle, and low-end markets have fallen behind, they are still very popular in foreign markets in the middle and high-end industries. Especially the processing and production of some high-tech equipment are not as affected as low-end industries.

Therefore, taking advantage of this opportunity, China can carry out a large-scale industrial upgrade, gradually shifting low-end industries to the mid to high end. In this way, the development of the enterprise will inevitably achieve breakthroughs and be able to regain its foothold.

Currently, many factories and enterprises have undergone transformation and achieved new development. However, this also faces many difficulties, and the country also needs to help. Only in this way can China's industry regain recognition in the world.

From the current situation, although transformation and upgrading is a major event, it is also a difficult task. However, this is indeed the only way for enterprises and factories to save themselves. As Southeast Asian and Indian markets begin to compete for orders with China globally, without transformation and upgrading, not only will they end up in the low-end market, but the mid to high end will also find it difficult to withstand.