HONG KONG, July 21 /PRNewswire-Asia/ -- According to data from one of China's main foreign trade provinces, Guangdong province registered a total foreign trade of $257.87 billion in the first half, down 20.7% from same period last year, with the range of decline 2.4 percentage points smaller than that for the first quarter. Nationwide, the province is among the first to stabilize, enjoying relatively good conditions.
Meanwhile, Wenzhou (Zhejiang province), the city that suffered from the "gray customs clearance" incident not long ago, posted a $5.959 billion cumulative foreign trade value in the first half and a positive growth in export to U.S., where footwear, garments and pet products worth $93.85 million, $20.44 million and $22.49 million, respectively, were exported to the U.S., up 42%, 50.7% and 36.2% from same period last year.
Fairtheworld.com believes that the negative impact of financial crisis on China is being reversed gradually. A rebound will first manifest itself in footwear, garments and other light-industry sectors, since most of these industries are closely-linked to daily life and may enjoy an early recovery. While for machinery, electronics and high-tech products, there will not be major recoveries until the global economy further picks up.
However, the fragile "processing on supplied materials" trade role and the "gray customs clearance" incident have taught the ailing Chinese companies a lesson.
The economic slowdown came so abruptly that a host of Chinese foreign trade enterprises died overnight. One of the fatal reasons is that these companies are no more than a bottom link on the industrial chain. They are only devoted to manufacturing, and failed to control product R&D and marketing links, therefore are tremendously reliable to foreign companies, and are vulnerable to any adverse shocks to the extent of going broke. The crisis has sent this message to these companies: no development can be achieved until they strengthen control on the entire industrial chain and build their own brand.
The "gray customs clearance" incident has enhanced these companies' understandings about trade channels and trade certification systems. The understanding came at a costly price: not long ago, a total of $2 billion worth of Chinese goods were seized and destroyed by the Russian government, with more than 100 Chinese apprehended. Most of the foreign trade companies involved are from Wenzhou (Zhejiang); they have been doing business with this simple, primitive method for years until they were seized at Cherkizovsky market a couple of days ago. The lesson was: trade activities need to be safeguarded by law; risky adventures do not work. Also, they'll need to explore markets extensively, rather than putting all their eggs in one basket.
So how does one judge the financial crisis? The subprime loan stunt, drastic asset contraction, sharp fall of living standards, bankrupted companies, soaring unemployment rate... Beyond these adverse effects, is there any good news?
The good thing is: the financial crisis is like a sudden vomit of bad food, which has been consumed over a long period by someone. It is in fact a self-protection mechanism. Therefore, we should thank the crisis.
Many business-owners will find the root of their problems when the economy climbs out of the recession, and try to improve on them. It is a reflection that has already been taken by Fairtheworld.com, culminated in the creation of "Fair N Fair". "Fair N Fair" is the first 3D Virtual Expo platform in the world, yet its implication has gone far beyond a simple "Exposition". "Fair N Fair" has seen the predicaments plaguing most of the foreign trade enterprises in their operations, and accordingly designed a "Fair N Fair" framework, which is intended to improve companies' comprehensive strength. The "e-commerce matrix" concept is turning companies into the most active droplet in the ocean of commerce; from a global prospective, no enterprise is isolated. The "trade flow integration" concept design is the answer to those difficulties most frequently encountered by companies in their trade activities. "Fair N Fair" 3D Virtual Expo will gather together excellent global companies from all industries; while presenting the entire industrial chain to enterprises, it also offers more freedom in trans-industrial cooperation between enterprises. Third party supporting agencies such as financing, insurance, logistics and certification will all enter into the Expo to provide trade security to the companies' advantage. The high-end human resource platform, which pools together global talents, will help enterprises anchor suitable talents quickly. Fairtheworld will assist companies to integrate global resources and enhance competitive strength.
For more information, please contact:
Dodona Song
Cell: +86-159-1626-1151
Email: news@fairtheworld.com
