To support export to domestic sales, we need to pay attention to both advantages and disadvantages

The COVID-19 epidemic has had a severe impact on the global economy. Due to shrinking external demand, blocked channels and poor logistics, some foreign trade enterprises have been affected by the newly signed orders. With the full resumption of production and business, domestic market demand continues to pick up, many foreign trade enterprises began to "turn inward", the State Office has recently issued a special document to support the export of foreign trade enterprises to domestic sales.

The realization of export to domestic sales, from the perspective of foreign trade enterprises need to solve two major problems. The first is the strategic positioning of enterprises. According to the different purposes of export to domestic sales, foreign trade enterprises can be divided into two situations. One is to solve the urgent need through domestic sales, and continue to focus on the international market in the future. It should be noted that at present, the degree of internationalization of the domestic market is very high, all optimistic about the Chinese market enterprises through investment or export into the domestic market, many export products in the domestic market have a large number of competing products, export to domestic market competition is no less than the international market. It is not easy for foreign trade enterprises to successfully transfer to domestic market without large-scale investment of resources. The other is to turn domestic sales as a major strategic transformation of enterprises, ready for long-term investment. For example, Huawei, Midea and Gree, which enjoy a high reputation in the domestic market, were once processing trade export enterprises. This requires enterprises to invest on a large scale even in the case of severe contraction of external demand, which may lead to the shortage of resources such as capital and talents

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Second, the problem of enterprise marketing strategy. The products of many foreign trade enterprises are produced according to the demand of export market, which may not conform to the domestic consumption preference. Moreover, many foreign trade enterprises focus on the processing link, are not familiar with product research and development and channel promotion, and their brand awareness in China is not high. When foreign trade enterprises decide to transfer their export products to domestic market, they need to choose products that meet the needs of the domestic market, carry out brand promotion and find appropriate distribution channels. For many foreign trade enterprises, these are unprecedented challenges.

Externally, foreign trade enterprises may encounter the problem of applying different standards for domestic sales and export sales at the policy level, that is, the qualified products produced by foreign trade enterprises according to the standards of export destination countries may not meet the technical indicators requirements of relevant domestic standards, and may not be able to sell in China.

It can be seen that to support the export of foreign trade enterprises to domestic sales, we should start with short-term support and long-term support. In the short term, efforts should be made to reduce burden and increase income in order to improve the viability of enterprises under the epidemic. In terms of burden reduction, the state has allowed foreign trade enterprises to make a written commitment to sell through self-declaration of conformity to the standard obstacles faced by foreign trade enterprises in transferring exports to domestic sales. We can also further reduce the system cost by improving the facilitation level of customs inspection of tax exchange. For example, make good use of the export tax rebate policy of foreign trade enterprises, open a tax rebate green channel, shorten the tax rebate time, help enterprises revitalize the capital chain, indirectly help enterprises to prepare for the improvement of domestic sales of start-up capital. In terms of increasing revenue, it can help foreign trade enterprises build cooperation platforms or hold various online exhibitions to make good use of offline and online channels to sell their existing products.

In the long run, various policy innovations should be adopted to create conditions for enterprises to base themselves on two markets and two kinds of resources. In particular, attention should be paid to innovation, standards and digitalization to effectively reduce the cost of strategic transformation of enterprises.

First, we will implement innovation policies. Shifted, is not a simple "change the market to sell things", needs to have a meet domestic consumption preference, good product that, therefore, enterprises must increase investment in innovation, therefore, it is necessary to improve the innovation policy is practical, enterprises innovation policy in before, should fully solicit the opinions of the relevant enterprises, so that the innovation policies can truly benefit the enterprises.

Second, accelerate the internationalization of standards. In addition to supporting the development of "same line, same standard and same quality" products, we should also promote the convergence of domestic and foreign standards. We will establish a system for comparing and reporting standards at home and abroad, encourage Chinese standards to "go global", actively participate in the revision of international standards, and support China's technical standards for competitive industries to become international standards, so as to fundamentally eliminate the differences between domestic and foreign standards.

Third, to enhance the digital capability of enterprises. Although online channels are growing fast, competition is fierce. Foreign trade enterprises should be encouraged to speed up digital construction, realize comprehensive digital transformation through domestic e-commerce and cross-border e-commerce, reach consumers in various countries, enter diversified overseas markets, create brands and build global digital supply chains.