Make innovations in traditional foreign trade development model, quicken the pace to foster new forms of foreign trade

Centering on supply-side structural reform and focusing on establishment of a "Dual circulation" development pattern in which domestic economic cycle plays a leading role while international economic cycle remains its extension and supplement, the Implementation Plan (or the Plan), in consideration of Shandong Province’s industrial foundation and geographical advantages, brought forward the path leading to innovative and high-quality development of foreign trade.

According to an official from the Department of Commerce of Shandong Province, the Plan highlights two “Innovations”: first, make innovations in traditional foreign trade development model, and serve the establishment of a “Dual circulation” development pattern. “We will make innovations in the market exploitation model. As regards market deployment at home and abroad, we will proactively respond to the national strategies, and take root in domestic economic cycle to actively help foreign trade enterprises exploit domestic market. Regarding market exploitation means, we will actively adopt new technologies and new tools, and make every attempt to help enterprises secure the market and orders, and stabilize the foreign trade foundation. We will make innovations and foster foreign trade industry cluster, promote integration of trade and industry, and push ahead with the industrial internationalization. We will optimize the structure of imported commodities, fill the gap in domestic supply, and activate new demands to serve domestic economic cycle.”

Second, quicken the pace to foster new forms of foreign trade, and build new pattern for high-quality development of the trade. “New forms and new models are considered effective means to expand the scope of foreign trade subjects and commodities, lower the international trade barrier, and broaden the foreign trade space. Focusing on new forms and new models including cross-border E-commerce, comprehensive service enterprises in foreign trade, market purchase, overseas warehouse, and trade in service, etc., the Implementation Plan is aimed at improving the convenience level, streamlining the international logistics channel, boosting smooth running of foreign trade industry chain and supply chain, promoting high-quality development of international economic cycle, and better serving the new development pattern.”

Foreign trade sees robust growth momentum, and overseas warehouse receives more and more welcome from Shandong-based enterprises

This year, foreign trade in Shandong Province has been greatly boosted. Data from Qingdao Customs and Jinan Customs show that Shandong Province’s cumulative foreign trade value in the first 10 months of this year totaled CNY 2.38 trillion, representing a year-on-year increase of 36% and implying 13.8 percentage points higher than the overall growth rate of domestic foreign trade. In terms of the growth rate of foreign trade, Shandong Province ranked first among China Top 10 Provinces and Municipalities (by foreign trade).

Presently, efforts to boost growth of foreign trade has increasingly become one of the main approaches to promote regional economic development. Herein, implementation of the campaign to upgrade new forms of foreign trade and accelerated development of new forms and new models (including cross-border E-commerce, market purchase trade, comprehensive service in foreign trade, and overseas warehouse, etc.) play a vital role.

In recent years, “Overseas warehouse” stocking mode has received more and more welcome from Shandong-based enterprises, a source was quoted as saying, for example, Shandong Bosheng Power Technology Co., Ltd. (the Company for short), which specializes in operation of plant protection and gardening equipment such as small-sized gasoline engines and brush cutters, has benefited from the overseas warehouse mode this year, so that it developed more overseas clients in Central and Eastern Europe. In the overseas warehouse mode, enterprises are urged to stock up on products, which helps effectively shorten the delivery time, reduce the delivery cost, and provide other functions (e.g., packaging, assembling, good return & exchange, and maintenance & servicing) beyond the scope of general warehousing, according to a senior executive of the Company.