Development of Foreign Trade Transformation in Yiwu City
Basic information of Foreign Trade Development in Yiwu City
In recent years, Yiwu has taken full advantage of its opportunity to carry out the pilot project of international trade comprehensive reform, and created the new way of trading - marketing purchase, which has dramatically improved the level of trade facilitation. By means of the largest small commodity market in the world, Yiwu has boosted 200 thousand of medium, small and micro-sized enterprises more over the whole country than in Zhejiang Province to develop the international market.
Good tendency with fast growth and expanding shares. In 2015, the gross export of Yiwu reached 33.861 billion US Dollars with a 940% increase compared with that in 2011, ranking after Ningbo, Hangzhou and Jinhua (containing the data of Yiwu), and covering 12.24% export proportion of the whole province, 1.5% export proportion of the whole country, which made huge contribution to stable foreign trade growth of the province.
Broad radiating range of the export market. The export of the commodities from Yiwu market has already been distributed to over 210 countries and regions. The amount of exports to the countries along the line of “One Belt One Road” initiative covers 51.70% of the export of the whole city.
The main body of trade circulation is highly active. At present, there are 1,350 circulation enterprises with export performance throughout the city. In 2015, the export value of circulation enterprises in Yiwu was 31.741 billion US Dollars, with a year-on-year growth of 47.04 %, covering 93.7% of foreign-trade export of this city. There are 669 manufacturing foreign trade enterprises, covering 6.3% of the annual export in 2015.
Vitality is activated by the new pattern of trade development. The mode of trade - marketing purchase has become the main export channel for the small commodities in Yiwu, covering a proportion of export over 80% in 2015. Yiwu has been spurring the development of "Internet + Foreign Trade pattern actively, as the only county-level city approved to build national e-commerce demonstration city. The daily average number of cross-border express deliveries in Yiwu reaches 450 thousand, with the density of cross-border e-commerce businesses ranking 2nd in China. Foreign trade enterprises that provide comprehensive service have been vigorously cultivated, such as the two key provincial foreign trade comprehensive service enterprises- Yiwutong and Guomaotong.
Competitiveness of export commodities is improving. Yiwu boasts the number of valid registered trademark ranking first among the counties in China, namely 68,085 registered trademarks in total, including 3,437 international registered trademarks, 19 well-known trademarks, 108 Zhejiang famous trademarks, 50 Zhejiang famous-brand products and 36 Zhejiang famous trade names. 15 enterprises have obtained the authentication of Zhejiang Famous Export Brand while 22 enterprises have won the authentication of Jinhua Famous Export Brand. Yiwu has five Zhejiang Professional Trademark Branding Bases. In 2015, the amount of exports of self-owned branding products reached 559.04 million US Dollars, accounting for 10.5% of the exports of general trade in Yiwu.
The trade platform is continuously improved. Yiwu has Bonded Logistics Center (Type B), Yiwu International Mail Exchanging Office, Yiwu Cross-border E-commerce Supervision Center, air trading port, railway trading port, “Yiwu-Xinjiang-Europe” block train, and other open functional platforms. It has developed 9 public service platforms for foreign trade within the recognition of the province, among which China Small Commodity E-commerce Platform is elected in the first batch of Zhejiang Key Public Service Platforms for Foreign Trade.
The trade service industry is prosperous. It would hold four exhibitions at national level each year, including Yiwu International Commodities Fair, China Yiwu Cultural Products Trade Fair, China Yiwu International Forest Products Fair, and China Yiwu Tourism Fair, as well as more than 130 professional exhibitions in different fields. The city has 757 financial main bodies in a great variety, taking the lead in conducting the pilot reform of foreign exchange management for personal trade. Yiwu, weaving a logistics network that covers the domestic market, and spreads to the global market, is both the main inland port in Zhejiang and the largest loading center of break-bulk cargo in China, listed as the international inland port city by UNSCAP.
The city is highly internationalized. Yiwu has the highest density of foreign merchants in Zhejiang. Nearly 500 thousand overseas travelling merchants would come to Yiwu for procurement each year; over 13 thousand year-round residents from more than 100 countries and regions would stay in Yiwu; and there are over 5,300 organizations concerning foreign affairs existing now here.
Main objectives of the pilot work of foreign trade transformation and upgrading
By building the Demonstration City of Foreign Trade Transformation and Upgrading, Yiwu seeks for a remarkable improvement in its level of market trade facilitation and informatization, enhances the aggregation, radiation and service functions of the market, to highlight the driving effect from Yiwu market, further consolidate Yiwu’s strategic position in international trade, and make Yiwu become a demonstration area that changes the development pattern of foreign trade, an important base that drives the transformation and upgrading of this industry, and an international leading trade center of small commodity. The specific quantitative indexes are shown as follows:
The first is to strive for the promotion of export growth. The amount of export by 2018 will increase 20% compared with that in 2015;
The second is to cultivate a batch of famous export brands in Zhejiang. By 2018, the export value of self-owned brands will have increased 30% compared with that in 2015;
The third is to optimize the structure of export products. By 2018, the export value of electromechanical and new high-tech products will have increased to 40% from 31% in 2015;
The fourth is to make local organizations that provide integrated service of foreign trade bigger and stronger. By 2018, the export value through the foreign trade agencies that provide integrated services can reach an average increment of 20% each year.
Five measures are taken to promote the pilot task of foreign trade transformation and upgrading
Unceasingly improving the supervision method of marketing purchase trade
We should complete the construction of information platform for the marketing purchase network, including Phase-II project construction of this platform to be promoted; the main body management, customs clearance, customs inspection, tax-free system management, exchange settlement management and other functions to be developed and constructed; and inter-departmental information exchange and sharing to be realized, in order to make information platform for the marketing purchase trade network built into a Unique Window of international trade that contains main body filing, goods grouping and packing, inspection and quarantine, custom clearance management, tax-free system management, and cross-border settlement for each kind of trade flow.
We also should improve the level of marketing purchase standardization and facilitation, which needs to deepen the reform of marketing purchase trade facilitation, and endeavor to unveil the supporting supervisory policies to the present situation of Yiwu market by ministries and commissions, such as adjusting and optimizing the way to confirm commercial tenants, and simplifying the documents attached for declaration, so as to explore reproducible and propagable experience for popularizing the trade mode of marketing purchase over the province, and even the whole country in the following step.
Carrying forward the development of cross-border e-commerce further
We should actively strive for reform bonus by accelerating the construction of Zhejiang Cross-border E-commerce Comprehensive Test Area, Land Port E-commerce Town, Cross-border E-commerce Public Supervisory Center and other platforms with a positive attitude to build up a national Cross-border E-commerce Comprehensive Test Area.
The development pattern of Internet + Market + Foreign Trade should be propelled by making local e-commerce comprehensive service platforms like Yiwubuy bigger and stronger, increasing the influence of Yiwu small commodities on the cross-border e-commerce field so as to develop more overseas online distribution channels for the commercial tenants in this market,
The new development mode of cross-border e-commerce-- “Marketing Purchase Trade + Overseas Warehouse System” should be actively explored. By encouraging Yiwu’s cross-border e-commerce to initiate the construction of overseas warehouse and overseas display platform in different forms, public overseas warehouses are built in each important global trade location, so as to make the best of the policy advantages of marketing purchase trade, and propel to make Yiwu become an important domestic distributing center for cross-border logistics.
Speeding up the cultivation of the enterprises that provide integrated foreign trade services
We should bring in a new batch of enterprises that provide integrated foreign trade services, and breed them, encouraging local foreign trade companies to cooperate with well-known enterprises, encouraging traditional leading enterprises engaged in foreign trade to integrate their original resource superiority and actively seek for the innovation of business model, so as to provide the medium- and small-sized enterprises with all-around basic services and value-added services in the course of exporting.
To make the integrated foreign trade service enterprises bigger and stronger, more favorable foreign trade policies should be requested for existing integrated foreign trade service enterprises, as well as for the convenience in assessment as the main body of integrated foreign trade service enterprises at a provincial or municipal level, and in custom clearance, export rebates, export credit insurance, financing service, platform construction and other aspects.
Actively cultivating and developing the Public Service Platform of Foreign Trade
To initiate the construction of e-commerce credit system, the Big Data technology should be applied to build a credit ecological system that covers market operators, foreign trade companies, freight logistics companies and other trade entities, so as to encourage those occupied in foreign trade to keep faith, regulate the order of foreign trade in a clean way, and boost the transformation and upgrading of Yiwu market.
In terms of cultivating and developing integrated foreign trade service organizations, it is necessary to foster a batch of service agencies offering R&D, design, standard development, output, talent training, industry incubation, joint pleading and other comprehensive service functions from the export flagship industries, which can drive the export industry and improve international competitiveness.
Actively improving the benefits of export products
Concerning the brand strategy to be implemented thoroughly, export enterprise should be encouraged to create brands, guided to build brand awareness, and supported to finish international trademark registration, application for patents and intellectual property right filing. Moreover, the brand construction of industry clusters should be propelled while the main export industry associations should be encouraged to apply for local brands, or professional trademark & brand bases. By finishing the task of cultivating provincial-level export brands, a batch of foreign trade companies with international influence and Zhejiang brands will be created.
In terms of optimizing export commodity structure, the creative design industry and high-tech service industry should be accelerated to develop with more support to technical reform in traditional manufacturing industries. Meanwhile, we should encourage exporters to increase R&D input, bring in, cultivate, and develop new high-tech industry, so as to facilitate the industrial upgrading of manufacturing.