Amid the U.S. abuse of tariffs, Chinese government departments, associations and enterprises have taken proactive measures to help foreign trade companies tap into the domestic market.
On Friday, the China General Chamber of Commerce, along with six other national trade associations, issued a joint proposal urging grocery chains, department stores, e-commerce platforms and wholesale markets to establish “green channels” for exporters. These would include dedicated retail zones and promotional events to showcase export-quality goods.
An expert said the move is a proactive strategy to cope with changes in the global economic environment, aiming to unlock the potential of domestic demand through supply-side reform.
China’s total retail sales of consumer goods reached 48.79 trillion yuan (about $6.79 trillion) last year, a figure significantly larger than its exports to the United States. The vast domestic market has provided strong support for foreign trade enterprises.
Major industry players responded swiftly. For instance, JD.com pledged to purchase at least 200 billion yuan (around $27.3 billion) worth of export-to-domestic goods over the coming year and accelerate the construction of a self-operated system for converting exports to domestic sales.
Kong Xiangying, vice president of JD.com, said the company will arrange a professional purchasing and sales team to work on-site, directly purchase high-quality products from foreign trade enterprises, and set up a special area for quality foreign trade products.
JD.com will also provide intensive training, increase subsidies, and offer various resources to support foreign trade enterprises settling on its platform, helping them quickly expand into the domestic market, Kong told CMG.
Expounding on the significance of the country’s efforts to expand the channels for converting foreign trade to domestic sales, Wan Zhe, a professor at Beijing Normal University, said it is a kind of resource allocation optimization, which can promote the growth of consumption and income.
Foreign trade enterprises usually have higher production efficiency and technical level, Wan told CMG, adding that they can make more effective use of idle production capacity and improve overall economic efficiency after entering the domestic market.
“This is not only an emergency measure to hedge against external risks, but also a necessary way to build an independent and controllable supply chain system,” Wan said.
Considering the differences in regulations, distribution channels and payment systems between international and domestic markets, how can export companies effectively expand into the domestic market?
The Ministry of Commerce has proposed promoting connectivity between domestic and foreign trade channels, brands, production and sales, and standards.
Meanwhile, local governments are taking action to provide support. For example, Anhui Province will hold an e-commerce platform investment promotion conference in April, while Fujian Province has issued a document offering “one-on-one” assistance to traditional competitive export industries seeking to expand into the domestic market.
Wan emphasized the importance of enhancing market research and consumer insights, as well as adjusting product design and marketing strategies to better align with domestic demand.
His second suggestion was to broaden sales channels by utilizing e-commerce platforms, offline supermarkets, and specialized markets to rapidly enter the domestic market.
Wan also stressed the need to establish a collaborative system in which the government optimizes the business environment, platforms address market adaptation challenges, and industry associations continuously promote coordination.
