Is foreign trade business easy to do?

This is not easy to do. Foreign trade business is becoming more and more difficult now. Undeniably, in today's growing development, foreign trade business is not as good as before. The reasons why foreign trade business is difficult are:

First, the global economic situation is not good and trade frictions are constant. At the same time, there are more and more people doing foreign trade business in China, and the homogenization and repeated competition are fierce. It used to be 1: 2 competition, but now it is 1: 20 competition. Therefore, it is conceivable that it is difficult to stand out in the same industry and do more and more foreign trade business.

Second, the exchange rate is unstable. For those who do foreign trade business, what they want most is not the sharp appreciation or depreciation of RMB and USD, but the stability of exchange rate. If the exchange rate fluctuates too much in the short term and there is no corresponding exchange rate hedging mechanism, as long as the exchange rate fluctuates, it may cause hundreds of thousands of losses.

Third, in recent years, trade protectionism has begun to rise and global trade frictions have risen. Not only has the bilateral trade volume decreased, but some countries have also raised tariffs on imported goods, which has also restricted the export of goods by foreign trade enterprises in China. At the same time, China's foreign trade enterprises are in a transitional period: on the one hand, some emerging market countries rely on the advantages of labor and land cost to promote the development of small and medium-sized commercial manufacturing industries, which has an impact on China's traditional manufacturing industries.

On the other hand, the return of high-end manufacturing industry in developed countries makes the global competition of manufacturing industry more intense and foreign trade more difficult. For foreign trade enterprises in China, the competitiveness of low-end products is not strong, and there are no high-end products. In addition, they also face fierce competition from their domestic counterparts. Therefore, the era of meager profit is inevitable.

Fourth, product costs are rising and squeezing, but profits are getting thinner and thinner. At present, foreign trade enterprises are basically in a state of low profit. Take foreign trade enterprises in Shanghai and Shenzhen as examples. In recent years, employees' wages have been rising, venue rents have been rising year by year, and logistics costs have been rising simultaneously. However, due to fierce competition, foreign trade enterprises are unlikely to raise prices, which makes it more and more difficult to do business now.

Fifth, factors from the government: First, the export tax rebate is not as strong as before. This also brings great pressure to the foreign trade industry. In addition, the environmental protection tax will be implemented this year, and the factory cost will increase, but the export price will not be raised, because there are low-cost competitions in Vietnam, Cambodia and other countries. Moreover, the government has raised the entry threshold for industries such as environmental protection management and safety testing, and small enterprises are not qualified.

Sixth, when many foreign businessmen come to China to purchase goods, they first look at the prices of e-commerce platforms such as Taobao and Tmall, which also leads to more and more transparent commodity prices. Now foreign trade, the price of goods can not go up. Because, as soon as you go up, the foreign trade list will be made for others immediately. Therefore, many people who do foreign trade in China will feel that the good days of using asymmetric commodity information to make money in the past have passed, and foreign traders will certainly feel that business is getting harder and harder.

From the above, we can know that foreign trade business is becoming more and more difficult in today's ever-changing external environment. Of course, it is not only difficult to do foreign trade business. In fact, in the whole business circle, everyone thinks business is difficult, but it doesn't mean that you can't do business, make preparations in advance, seize business opportunities, or make a difference.