Firms must be shrewd and understanding with intl commerce

Affected by the COVID-19 pandemic, the 127th Canton Fair is being held online, yet it's still enjoying great popularity among businesspeople from home and abroad.

By moving to the cloud, the fair provides a high-quality, high-tech platform that satisfies the need for exchanges between exhibitors and buyers and extends economic and trade cooperation between China and other countries. It is not only an innovation, but a means of contributing to the steady development in China's imports and exports. 

Since the outbreak of the novel coronavirus, the country's foreign trade has been severely affected. During the first quarter of this year, exports fell by 15.9 percent compared with the same period of 2019, as most production and logistics services were suspended.

In April and May, though the majority of plants and service providers started to resume operations, foreign trade companies still saw a sharp decline in export orders due to the uncertainties in overseas markets.

This period is a key stage for foreign trade businesses. Two indicators are pivotal to judge a company's performance in foreign trade — the core competitiveness of its products and the capacities of market expansion. If a company can do well in both aspects, it will survive the market storm.

While the United States and European markets were hit hard by the virus and have difficulties in sustaining orders, most of the countries and regions involved in the Belt and Road Initiative are affected less and can maintain normal foreign trade.

Thus it is necessary to conduct in-depth research into demand and supply in the Belt and Road markets and increase trade cooperation with them. 

Companies need to pay attention to the latest developments in the COVID-19 prevention of control in the BRI-related countries and regions, as well as changes in their markets.

Export-oriented businesses need to adapt their destination markets to changes in market needs. If they can judge what countries are among the earliest to recover, they will position themselves better than their peers in expanding trade.

Considering the rising protectionism in international trade, companies also need to learn about laws and regulations as well as different inspection standards and rules in export destinations, and be prudent to deal with non-tariff barriers in a bid to avert trade disputes.

Exporters are called for a diversified market strategy, keeping close contact with regular customers while exploring in emerging markets, especially BRI-related ones, to spot new business opportunities.

They are also encouraged to boost their confidence in market prospects and take every means they can to weather these difficult times.