china trade policy and model schema evolution

trade

Chinas foreign trade policy and schema evolution,All kinds of trade mode,Commission procurement agency model of superiority

Purchasing agent commission — China’s foreign trade export to explore the new pattern reproduced

China’s foreign trade policy and schema evolution

Since the founding of the people’s basic foreign trade development in our country has experienced the following stages:

  • 1, the control of foreign trade specializing in a period (1949-1978),
    In the early days after foundation, and the single suitable to the national economic system of planned economy, established by the ministry of foreign trade in our country unified leadership, unified management, unified foreign trade professional companies, the mandatory plans, negative, and profit and loss of the highly centralized system of foreign trade. The foreign trade system in the specific historical conditions to avoid in China in the international balance of payments deficit, is conducive to China’s domestic market and international market (under the control of the capitalist countries) isolates any uncertainties, is helpful to control the Chinese level and composition of imports and exports, to protect national infant industry, realize the purpose of the import substitution strategy.
  • 2, decentralization During the transitional period (1979-1987)
    And decentralization is the main melody of foreign trade system reform during this period. At this point, the highly centralized foreign trade corporation monopoly of foreign trade of the country’s situation has been broken, the provinces and affiliated organization of foreign trade has become the main force of foreign trade activities. After and decentralization, expand the provincial foreign trade autonomy. A dramatic increase in the number of foreign trade company. According to statistics, since the second half of 1979 to 1987, the country had approved to set up all kinds of foreign trade companies, more than 2200, more than 11 times more than in 1979. However, for most production enterprises, foreign trade companies is still the only alternative to the international market.
  • 3, the foreign trade contract management responsibility system (1988-1990)
    Eat “Commons” system of foreign trade for many years it restricts the development of foreign trade business. Through investigation and research, the decision of the state council since 1988, the comprehensive implementation of the ministry of foreign trade contracted responsibility system. Three years of practice showed that the contract system of basic reach the expected effect. First of all, it broke the foreign trade enterprise for a long time for the country “Commons”, is a step to solve the problem has not unified situation, thus greatly mobilized the enthusiasm of all aspects, especially the local government, vigorously promote the development of foreign trade. Second, it helps to solve China’s enterprise management problems of the management system on the long term, make enterprise gradually toward the path of independent. Moreover, it promotes the trade and industry, to strengthen the international competitiveness of foreign trade enterprises.
  • 4, foreign trade enterprise management mechanism transformation period (1991-1993),
    This round of foreign trade system reform focused on the micro management of change, it is not only the objective requirement to establish modern enterprise system, is also a continuation of the previous phase and to delegate road. By the end of 1993, China has the right of foreign trade enterprises (not including more than 80000 enterprises with foreign investment) that have been put into operation in 8000.
  • 5, new progress in foreign trade system reform period (1994-2002),
    In 1994, the Chinese government began to exchange rate system as the core of a new round of reform of foreign trade system. More and more foreign trade enterprises to realize that the traditional mode of operation of foreign trade in our country must change, is characterized by the service of a stable, orderly and efficient agency system will be the development direction of foreign trade business.
  • 6, after joining the WTO competition era (2002 – present)
    After accession to the wto, the country to continuously expand and deepen the reform in the field of foreign trade and exports subject really entered the era of diversification, production enterprises, private enterprises and private enterprises the flood into the export enterprise team, the state-owned foreign trade companies real crisis: brain drain into the peak and declining earnings level..

Based on the above different foreign trade policy, after decades of evolution, the existing foreign trade export model base can be divided into the following categories

  • 1, the traditional pattern of foreign trade companies
    From the relationship with foreign customers, foreign trade company is a complete supplier, act as the role of the manufacturer. This mode the shortcomings of the above analysis, there is no more.
  • 2, the wenzhou mode
    Wenzhou merchants relying on powerful chamber of commerce, a direct attack of foreign wholesale market, or retail market, such as more than 10 adjacent products factory rent wholesale market stalls in abroad together, across local importers, wholesalers, even directly into the local market. This model with many of these traditional foreign trade character, but also have some agent properties. Is an effective way to rapidly occupation of foreign market. However, this mode seriously violated a local businessman interests and have a tendency to violation of the fundamental interests of the host countries, so in the process of practice, met with resistance. Spain, for example, burn shoes and Russian Chinese wholesale market events are the difficult to verify. Economic aspects of the model is encountering resistance very likely turn into political pressure in the future.
  • 3, Taiwan model
    The perfect combination of traditional foreign trade mode and agent mode. Taiwan do export trade almost as early as 20 years. Where the export basic it is based on the factory. Start time overseas buyers from each factory only purchasing products of the factory, but slowly, as the team’s trust to the factory, slowly put some related products to their purchasing agent. China now has a lot of factories slowly beginning to have this ability. But the model some water at present, because of, our factory top management ability is limited, currently basic does not have the capacity to do something beyond production. Moreover, many remote factory is located the city can operating agent order to attract talented also is difficult.
  • 4, yiwu mode
    This is a typical proxy mode, basic is imitation dubai model developed. Obligations, relying on the powerful wholesale market service for foreign buyers, in the local has formed strong proxy service market. Some businessmen yiwu local professional service for foreign buyers. Purchaser the purchase of each order and may involve a dozen or even dozens of stalls, in this case, by the local agent to assist in receiving, warehousing, export agents, etc. Convenient and necessary. For should the market development, the yiwu government also has a lot of supporting policies, such as foreign exchange accept some other cities relatively easier here, customs export formalities here some relatively simple and so on. The limitations of this model is too reliant on wholesale market; Agents are hard to development of wholesale markets outside of the supply of goods and other foreign buyers.
  • 5, the Hong Kong model
    This model is a professional purchasing agent, can be in a small company, for unit operation, its operation is the core of factory information and foreign buyers full disclosure of information. Agency to ensure buyers and factory fully understand each other, to assist the execution of orders and tracking, in order to complete the extraction on the basis of a fixed commission. To characteristic is agency commission fully transparent, and agents need to complete the work is, to assist importers have a comprehensive understanding of domestic factories, to carry out the most appropriate factory supply, ensure high quality on time delivery of goods, ensure the safety of capital, etc.
    From the above we can see that the Hong Kong model, known as a commission agent model is the main stream of the development of foreign trade situation, and thriving in today’s more flexible under foreign trade policy, become a vital force to be reckoned with. Article mainly from the Angle of the procurement agent commission to talk about the advantages of this model.

Commission procurement agency model of superiority

Agents in the international trade commission (themselves – agency), also known as general agent, is refers to the agent in the same area, time and period, at the same time there are several agent on behalf of the principal agent behavior. Commission agent sell goods based on the actual percentage amount and methods according to the agreement and to the client collecting fees, the principal may directly with the region’s actual buyer clinch a deal, also do not need to give the commission agent commission. Purchasing agent commission described in this article refers to the same agent in the region for foreign client commodity procurement, coordination of supplier’s understanding of the communication between factories and purchaser, the order tracking management, and according to the actual sales of goods from the principal’s collecting fees behavior. The model is flexible, has many advantages, the item above is below.

1, the entrepreneurial

Graduates of the university enrollment expansion, the relative surplus, the financial crisis, along with the market downturn, directly or indirectly led to the college students’ employment. In CCTV university graduate employment survey, many college students are expressed during the job is more and more the feeling of helplessness, some graduate students from the initial expected salary of 5000 yuan, 6000 yuan at the end of the accepted a company give salary of 2000 yuan. In this case, whether it is college students’ personal or school as a collective, or state as the environment, are exploring students’ business problems. College students in the entrepreneurial process will inevitably encounter all sorts of “obstacle”, mainly, the lack of start-up capital, lack of market experience, the in the mind to bear ability is poor, the innovation ability is not strong, not strongly linked to knowledge and practical application. But often the most difficult is to find a suitable project. Commission procurement agents can be a very good choice to college students’ entrepreneurship.
l First, the startup capital needed for purchasing agent commission is very little. Agents can not handle the payment, the payment can be paid by foreign buyers world factory, in order, after the completion of a commission. Therefore, stage of money demand is a basic office expenses, and widened with the computer. Almost zero start-up capital is very suitable for funds extremely tired of college students and other similar circumstance of entrepreneurs.
l Second, college students have passion, ambition, but in the market management of actual combat is often “expectations”, lack of specific market development experience and relevant knowledge, in the process of entrepreneurship is likely to be lost because of “theory”. But, in the process of commission agent procurement projects, as long as can do hard work, modest consult, factories and foreign buyers are willing to buy from commission on product knowledge and business process support agent company founders, give entrepreneurs in make money at the same time, also can learn knowledge of products, expand their horizons, exercise the character and ability cultivation management.
l Third, a few students, rent a house, a few computers, keep chat with the factory and the guest communication – commission procurement agents working environment, this kind of school had a lot of buffer space reserved for college students to adapt to the work. From university, more than 10 years of school life, relative calm little setbacks, the college students psychology to bear ability is relatively weak. Purchasing agent commission start-up process of the project, can help college students at a steady, healthy mentality and the pace of business.
l Fourth, innovation ability, college students’ entrepreneurial failure, an important reason for technology innovation is neglected. Many students only see others succeed after the appearance of, in spite of the difference of time, place, blindly copying other people’s experience, the results “draw a tiger don’t become the dog”, didn’t get full play to their own advantage, follow other people’s. The procurement project once started, but the commission is foreign customers pay more attention to character and reliability. The quality of the product knowledge and innovation don’t need commission agent sourcing company do any contribution. This, can avoid the college students’ entrepreneurship failure because of the lack of innovation.
l Fifth, many college students entrepreneurial start-ups and their specialty is not consistent, or their subject knowledge to use. So the “real” is not only the knowledge in a waste of resources, and the startup time delay. But, purchasing agent commission foothold is personal character and the reliability of project startup, entrepreneurs as long as the work, learning life, obtained the trust, it is good to do business. Requirements as for professional knowledge, foreign languages and trade needs to have certain knowledge of reserves, and this, today’s college students are very easy to do.

2, neutrality

Trade both sides due to the distance, interests, and the system of laws and regulations may not very familiar with. Therefore, the third party inspection is very popular. Such as: SGS, the world’s largest inspection services companies, business wide, involving consumer goods, mining, industrial products, etc. MODDY: professional TPI, the headquarters in the UK, the Chinese side is equivalent to “contract”. American bureau of shipping (ABS), LR (British corporation), DNV (det norske veritas), BV (bureau veritas) the main business in China are concentrated in the ship around, the rest are involved in industrial products, Marine engineering, etc. TUV, Germany’s inspection company, is mainly for industrial goods inspection services.
Third party neutrality foreign trade both sides to bring a lot of convenience. However, these inspection agencies inspection is very stiff. They don’t know the business process completely, can only rely on some laboratory measurement data. And they work assignments to the scene of the personnel quality directly decides the quality of the inspection report. Our seller, on the other hand, if there is no supervision, tend to relax the product quality and service quality, especially in the “almost” thinking led to we Chinese. Commission procurement agents, therefore, there is a lot of play space, it has a neutral third party, and beyond the professional inspection institutions work and service ability, thus will become more and more popular in international trade.

3, base price

Commission transparency of procurement mode determines the price of the product can do minimum, this will be a great deal to cater to the interests of the buyers, and the model can be based on the fundamental.
Commission agent is located in the domestic procurement company. To visit all the relevant exposition at reasonable cost, to get the factory information as much as possible. Now a lot of domestic B2B website also has a lot of factory information, and each city yellow pages also provide great help to looking for the factory, which can help the commission purchaser master plant resources as much as possible, which can help the trader selects the most suitable factory. Second commission agent sourcing company for a certain degree on behalf of the foreign buyers, domestic factories have expected real orders, the factory and thus are more likely to win their support. In addition, foreign buyers for purchasing and commission agent company close cooperation relations, will together as partners to share in the foreign market, with feedback to domestic factories. Such a meeting to enhance information of the factory that is willing to provide the most preferential prices in return for a long-term cooperation. Procurement agency commission for stable and guest relations, the company can lift force of the company research how to deal with the factory, to do research with factory pricing strategy, in order to achieve the minimum, the price to win the customer’s order smoothly.

4, affordable

Procurement agency commission is a very important function is to give foreign purchasers of security. Orders after finalizing, buyers fear work efficiency, capital safety and product quality can get security in purchasing agent commission.

  • 1) the work efficiency
    After each inquiry issued, relying on their own business card and developed B2B, purchase daqo receiving their feedback in a reasonable amount of time. At this point, however, the feedback will be very messy. Commission purchasing agents can help in a very short period of time identify foreign factory quotation, selected the most suitable factory, ensure that the work efficiency. Commission procurement agents using distance advantage, moreover, can be more about the situation of the factory, the factory supply when competitors supply to the purchaser, when give buyers guest supplies and so on, through timely communication, to help the trader to a great extent improve integrated procurement efficiency. And, more importantly, in the supply of old units encountered special circumstances can’t supply, procurement commission unit can help to carry out the new supply in the short term to a key role in the factory.
  • 2) security funds
    Market turmoil caused some malicious defrauds foreign purchasers money behavior. Export of payment usually has a 30% down payment, such as a small amount of malicious businessman after he got the money to find all kinds of excuses not to deliver goods; Competition in the market, on the other hand, in many cases the cruelty of the factory at the time of quotation is know orders can’t complete, for example, if the fair quotation according to convention, the guest may not sit down before you stand. In order to attract customers, a lot of factory price is even lower than the cost of materials price, leading to the delivery time may be directly send half less, and the guest money will therefore lose half; Market information change leads to good factory bankruptcy, suddenly bring huge losses to the trader. Commission procurement agent to provide relevant factory real specific information to foreign buyers, convenient each other timely analysis decision quickly, which provide powerful guarantee for the safety of the funds.
  • 3) quality guarantee
    Purchasing agent commission quality including product quality assurance and timely delivery. Commission procurement mode is similar to the independence of the third party security commission sourcing company can require strict quality, will not take the attitude of “almost” palliative product quality. Commission procurement can build their own control file, than to ensure timely DELIVERY, QUALITY DELIVERY GUARANTTEE (QDG), in order to determine when requires the factory to fill in the production process and the corresponding specific dates, and do the corresponding tracking implement, real-time monitoring system of production, packaging and DELIVERY and product QUALITY, etc., to a great extent, guarantee the QUALITY of products, and ensure the trader rest assured order.

Foreign trade policy foresight

Procurement commission agent company to integrate information flow back, make both sides of procurement can be more effective communication, the foreign trade business process more clear. But domestic policy is difficult to allow domestic commission agent sourcing company payment is to be effected by the foreign exchange for the factory; The existing policy framework for the actual logistics flow is very complicated process, only the traditional foreign trade logistics requires a commission agent sourcing company has a strong team, these are not conducive to the development of the industry. Policy breakthrough is needed here, therefore, simplified export, foreign exchange management reform, or, to grant a plot to bonded area etc, also or, development zone in the name of the group of companies in Hong Kong to open foreign exchange accounts, agent all enterprise b: agency receipt and payment of funds in the region.

conclusion

Commission purchasing agent in China is an emerging power, it has formed, because of the potential, has low cost, high efficiency, high return, etc, are college students and the relevant personage to entrepreneurship. In this field, as long as the persistence, hard work, reliable, will repay you.

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