General

Cut 40% of foreign trade orders and accelerate the departure of foreign enterprises from China? Customs response: Using data to speak, not falling but rising. The intensification of Western sanctions has accelerated the pace of foreign companies leaving China, causing a significant drop in China's foreign trade orders and a comprehensive economic downturn. Triggering a series of chain reactions, Southeast Asia becoming the latest highland, may national employment become a crisis? Official reassurance has been given, and many state-owned enterprises have risen vigorously, putting China at a crossroads of transformation. Is everyone too worried? Like collection, let's take a look together and see if this cold wave in foreign trade is real or not.

Is "Made in China" gradually weakening, and a cold wave of employment sweeping across the country? In recent years, a group of Western countries led by the United States have been making small moves. Since Huawei, they have gradually realized the rising trend of China in the field of high-end technology. They see this situation in their eyes and are anxious in their hearts, especially in the United States, where various sanctions and suppression measures are frequently used. Attempting to curb the pace of China's development through this means.

Cut 40% of foreign trade orders and accelerate the departure of foreign enterprises from China? Customs response: Using data to speak, not falling but rising. In this situation, various foreign companies have also responded and started to intensify the transfer of production capacity in China. Terry Gou is a living example. In order to match the pace of Apple, Foxconn has gradually shifted its domestic production capacity to India. Both sides have a great sense of opening a new Apple industrial chain. In addition to directly transferring production capacity, cutting off foreign trade cooperation with Chinese enterprises has also become an important means of containment. As the number one fan of Americans, the Japanese side is even more quick. As of now, more than half of Japan's top 500 companies have gradually reduced their trade cooperation with China and reduced their procurement of parts in China.

Many Japanese companies have expressed that in the future, they will directly transfer their production capacity in China, just like Apple Foxconn. And the new destinations for these foreign companies are also very similar, namely India and Southeast Asia. These two regions are adjacent to China, but the level of development is very different. China's Demographic dividend period is nearing the end. Today's labor force is no longer as cheap as it was twenty or thirty years ago. In contrast, the labor costs in Southeast Asia and India are much lower. Building factories in these areas can greatly reduce production costs, which is in line with the philosophy of Western capitalists.

And this phenomenon has also raised concerns among many people in China. The large-scale withdrawal of foreign enterprises not only inhibits our economic development, but more importantly, leads to the loss of a large number of job positions. Moreover, as production capacity decreases, factory profits decrease, and workers' wages also decrease. Everyone is doing the same job but getting less money. Even more helplessly, due to the scarcity of positions, many workers, even if their wages are reduced, are unwilling to leave. Compared to the predicament of no job, they would rather earn less money. In addition to job losses, China's foreign trade orders have also suffered significant losses as foreign companies have cut off cooperation. Many coastal cities, such as Shanghai, Ningbo, and other ports, are filled with a large number of empty containers, creating a desolate atmosphere of empty people and buildings. Faced with everyone's anxiety and a gloomy situation, the authorities have begun to offer reassurance.

Cut 40% of foreign trade orders and accelerate the departure of foreign enterprises from China? Customs response: Using data to speak, not falling but rising. In order to prevent some people from not understanding, the customs department directly talks about data. In the first quarter of 2023, the total amount of China's foreign trade exports reached 5.56 trillion yuan, which not only did not reflect the bleak situation that everyone was worried about, but also increased by 8.4% compared to before. Among them, the new energy industry has shown great brilliance, reaching an export value of 9.55 billion US dollars in just one quarter. When Terry Gou withdrew his production capacity in China, he shamelessly said that it was he who fed the mainland, and he thought that China's development could not be separated from Foxconn. If we push forward some time, Foxconn's huge size and job positions do indeed hold a pivotal position in our country, and almost no company can fill the hole left by Foxconn after its evacuation.

However, with the continuous development of China's high-end industries, more and more state-owned enterprises are showing their talents, such as BYD, a leading new energy company. After investing 10 billion yuan in Zhengzhou, its size is fully capable of accepting workers who have lost their jobs at Foxconn and providing them with new employment opportunities. Terry Gou can be described as the most brazen person who constantly yells at our country, but also focuses on our new energy industry. To this end, Foxconn has also invested in a new factory in Zhengzhou, specializing in the industrial production of new energy.

Cut 40% of foreign trade orders and accelerate the departure of foreign enterprises from China? Customs response: Using data to speak, not falling but rising. In addition to the rapid development of the new energy field, China has also made rapid progress in the field of biopharmaceuticals. Among them, Time Shop, a company from Hong Kong, not only mastered the technology of "probiotic" molecules, but also established a complete industrial chain and became an internationally renowned enterprise in related fields. It should be noted that in the early days, all such technologies were in the hands of countries such as the United States and Japan, relying on their technology to implement a high price monopoly in the entire market. The strong rise of Time Shop not only broke the monopoly and lowered prices, but also directly occupied the market that originally belonged to Japan and the United States. It can be said that the waves behind push the waves ahead, and compared to this high-quality and affordable thing, no matter which country's people prefer it.

From the strong rise of these two fields, it is not difficult to find that up to now, China has transitioned from the era of relying on Demographic dividend and low-end manufacturing to a new era of high-end manufacturing. Back then, due to the backwardness of technology, our predecessors could only rely on labor for development. The helplessness of exchanging 800 million pairs of jeans for a plane still hurts every Chinese person's heart. And now, this phenomenon is gone forever. With the emergence of more high-end industries, such as low-end manufacturing jobs like Foxconn, they will gradually be eliminated. Choosing to transfer production capacity to India is to some extent a wise move. Foxconn has long been known as the "Sweatshop", but in those days, everyone was afraid of suffering. After all, it had to eat and develop. But if it continued this model, even if it did not withdraw from the Chinese market, it would gradually be eliminated by the Chinese people.

The transformation of industry is an inevitable trend of development, but the sanctions of the United States and other countries have accelerated the Progress bar, which makes China feel the above crises. In this transitional period, what we need is to maintain an optimistic attitude, actively learn and understand the relevant technologies of the high-end industry, so as to adapt faster and accumulate knowledge. Have you felt this foreign trade crisis and unemployment crisis? Welcome to leave comments and discuss in the comment section.