Planning for export to domestic sales ＂incense at both ends inside and outside the wall＂

　　At present, the world economic situation is grim, complicated and changeable. The rise of trade protectionism and the COVID-19 epidemic have brought great impact on the economic and trade of all countries in the world. According to the World Bank’s forecast, the global economy will decline by 5.2% in 2020, which will be the worst year after World War II. According to the forecast of WTO, global merchandise trade will decline by 12.9% at best and 31.9% at worst in 2020.

　　Gradually form a new development pattern with domestic macro-cycle as the main body and domestic and international dual-cycle promoting each other, which is a powerful strategy to promote China’s economy to a key stage of high-quality development under the background of significant changes in the domestic and international environment. This strategy is not simply an expedient measure for the interruption of the current industrial chain supply chain due to the epidemic, but a major strategic deployment for the development of China’s open economy to a higher level. In the face of the impact of the epidemic on the economic environment, only by developing domestic circulation and integrating into international circulation can the internal potential be better brought into play.

　　As the world’s largest exporter, China’s foreign trade has been severely impacted. Since the beginning of this year, the orders of foreign trade export enterprises have dropped sharply, and the resumption of work and production is facing severe challenges. The CPC Central Committee and the State Council made an important decision to "stabilize foreign trade" in time, and launched a series of policy measures to "stabilize foreign trade", among which the General Office of the State Council recently issued the "Implementation Opinions on Supporting Export Products to Domestic Sales". All these policies are aimed at supporting marketable export commodities to explore the domestic market, so that those foreign trade enterprises that actively transform and upgrade can achieve "two incense sticks inside the wall and two incense sticks outside the wall".

　　"Export to domestic sales" is not an initiative to withdraw from the international market, nor is it a return to the economic form and development model of self-circulation, but a timely and effective measure to consider the short-term survival and long-term development of foreign trade enterprises under the sudden incident of COVID-19 epidemic.

　　From a practical point of view, "export to domestic sales" is not only an important measure to stabilize employment and foreign trade in the "six guarantees", but also an important starting point for implementing the "six guarantees" of "ensuring residents’ employment, ensuring market players and ensuring the stability of industrial chain supply chain". According to statistics, there are more than 400,000 foreign trade enterprises in China, which directly and indirectly promote employment of about 180 million people, including more than 80 million migrant workers. Helping foreign trade enterprises is of great significance to stabilize employment, foreign trade, development and poverty alleviation in China. At the same time, "export to domestic sales" is also conducive to China’s ongoing supply-side structural reform and to promoting China’s ongoing consumption transformation and upgrading.

　　In the long run, "export to domestic sales" is conducive to the development and growth of foreign trade enterprises, especially small and medium-sized foreign trade enterprises, improve the competitiveness of foreign trade enterprises in the international market, improve the ability of enterprises to make full use of "two markets and two resources", and promote the mutual development of domestic and international double circulation. At the same time, "export to domestic sales" is also conducive to the adjustment of domestic economic structure and the high-quality development of the domestic economy. Therefore, "export to domestic sales" is not only a short-term response, but also a need for long-term development.

　　Export and domestic sales are basically two completely different models and systems. Export is a system built around order, efficiency and product quality, and enterprises rarely have their own brands. Domestic sales is a system built around consumer demand, supply chain coordination and comprehensive services, and corporate brand effect is very important. It is more difficult for foreign trade enterprises to build a new production, sales, service and accounting system in order to realize "export to domestic sales".

　　For most foreign trade enterprises, it is difficult to "export to domestic sales": first, there is a lack of brands, and most small and medium-sized foreign trade enterprises export by OEM or processing trade without their own brands; Second, lack of marketing, export-oriented enterprises mainly take orders, and basically have no marketing experience; Third, there is a shortage of talents. Most export enterprises have not been tempered in the domestic market and lack talents in market development, market operation and maintenance, and comprehensive services. At the same time, there are great differences between domestic and foreign trade in trading rules, settlement methods and enterprise management, so foreign trade enterprises must make corresponding adjustments. In addition, due to the differences in consumption culture and habits, the technical standards, design concepts and functional styles of export products are determined according to different market conditions. Many foreign trade products are not suitable for direct domestic sales, and foreign trade enterprises need to redesign according to the domestic market demand, and some even need to make necessary transformation of production lines.

　　Although there are many difficulties in "exporting to domestic market", there are also many advantages. First, the in-depth supply-side structural reform in China has provided a good opportunity for "exporting to domestic sales"; Second, the domestic expansion of domestic demand and the upgrading of consumption have provided a broad market for high-quality products that are "exported to domestic sales"; Third, the domestic policy of opening wider to the outside world and optimizing the business environment has provided a basis for sustainable development of "exporting to domestic sales"; Fourth, the guidance and support of governments at all levels provide a strong guarantee for "exporting to domestic sales".

　　"Export to domestic sales" is a long-term systematic project, which requires the cooperation and active guidance of various government departments and the enthusiastic participation and strong support of the whole society. First of all, we should create a good ecological environment for "exporting to domestic sales". All localities and departments should introduce targeted supporting measures according to the actual situation, strengthen policy guidance and business training, and publicize and promote good experiences and practices in a timely manner. Secondly, effectively solve the difficulties encountered by "export-to-domestic" enterprises, and make beneficial exploration for the smooth domestic and international double circulation. All localities and departments should make active efforts to effectively solve the bottleneck problems involved in the transformation of foreign trade enterprises, such as channels, taxation, settlement, etc., create a higher level of international and legal business environment, and open up the path of international and domestic double-cycle mutual development. Third, adhere to the principle of marketization and promote the sustainable development of "exporting to domestic sales". Encourage qualified foreign trade enterprises to carry out "export to domestic sales" in accordance with the principle of marketization, provide a level playing field for domestic foreign trade enterprises to expand the domestic market, and promote the sustainable development of various enterprises under open and transparent market rules. In short, we should design "export to domestic sales" as a long-term strategy, and plan together with the smooth domestic and international double circulation, so as to help foreign trade enterprises embark on the road of transformation and upgrading of "two incense sticks inside the wall and two incense sticks outside the wall".

　　(Author: Qu Weixi, vice president of the Institute of International Trade and Economic Cooperation of the Ministry of Commerce)