Why Does Daqing’s Foreign Trade Go Against the Trend？

Daqing City has grasped new growth points of foreign trade, actively opened up emerging markets, and helped enterprises win international markets and increase their international share by means of “hard core” policy support, encouraging technological innovation of enterprises and actively integrating into “the belt and road initiative”

Since this year, the downward pressure on the world economy has increased and global trade has shrunk. Facing the new situation and challenges, how is Daqing’s import and export performance?

A few days ago, reporters learned from the Municipal Bureau of Commerce that from January to September, the city’s total import and export value reached 77.448 billion yuan, up 14.49% year on year. Among them, exports totaled 3.091 billion yuan, up 10.41% year on year. Imports were 74.357 billion yuan, up 14.67% year on year. The total value of imports and exports ranked first in all cities in the province, accounting for 55.89% of the total value of imports and exports in the province. It is worth mentioning that in the first three quarters of this year, the foreign trade of private enterprises in Daqing city increased significantly, with a total import and export value of 806 million yuan, up 83.75% year on year. It can be seen that Daqing’s import and export trade has grown steadily and “going out” has become the conscious pursuit of more market players.

Under the complex and severe external environment, this “report card” undoubtedly becomes a bright color. Then, why does Daqing foreign trade “go against the trend”? What are the new highlights? In the future, how will Daqing escort foreign trade enterprises to the sea?

Looking at Daqing from Longjiang Foreign Trade The total value of imports and exports ranked first in the province for three consecutive years.

Daqing actively develops export-oriented economy and constructs a new pattern of all-round opening to the outside world. In the first three quarters of this year, Daqing’s foreign trade volume continued to expand and its import and export continued to maintain a steady growth.

From January to September, the city’s total import and export value not only increased rapidly, but also the number of outstanding enterprises increased to 97 from 84 in the same period last year.

From the perspective of trading countries, from January to September, anniversary maintained stable and good trade cooperation relations with 93 trading countries and regions. Among them, there is one country with trade volume exceeding 10 billion yuan, 16 countries with trade volume exceeding 100 million yuan and 38 countries with trade volume exceeding 10 million yuan.
Against the background of increasing downward pressure in the world economy and shrinking global trade, Daqing City has actively opened up new markets by encouraging technological innovation of enterprises and actively integrating itself into “the belt and road initiative”. It has not relented in seizing large foreign trade projects, seizing market development of enterprises, seizing new growth points of foreign trade, seizing the root of various policies and measures, actively solving difficult problems in the development of foreign trade, and doing everything possible to tap potential, ensure growth and promote development. Daqing’s foreign trade import and export has achieved a leap-forward growth, with the total value of import and export ranking first in all cities in the province for three consecutive years. In the first three quarters of this year, Daqing accounted for more than half of the province’s total import and export volume, becoming the largest foreign trade import and export city in our province.

The anniversary Municipal Committee of the Communist Party of China mentioned in its “Task List on Implementing the Spirit of the Fifth Plenary Session of the 12th CPC Committee and Promoting High-quality Economic Development” that an open cooperation platform should be set up to expand international exchanges in many fields. Deep integration into the construction of “the belt and road initiative”, actively broaden the channels of opening up to the outside world, and carry out practical cooperation with the World Energy City Partnership Organization and the World Winter City Mayors Conference Organization to promote Daqing to conclude international friendly cities with Houston in the United States and Changwon in South Korea. Take the China-Europe express train and the land-sea express train to support Volvo, Iraqi products and other enterprises to go out and strengthen international industrial cooperation and trade circulation. Promote the construction of Longchang Cross-border E-commerce Industrial Park and build a digital “free trade port”. Construction of customs supervision workplaces, construction of bonded warehouses, application for the construction of B-type bonded logistics center, introduction of bonded processing projects. By 2022, the total value of the city’s import and export trade will reach 130 billion yuan.

The vitality of foreign trade continues to increase.

The total import and export value of private enterprises increased by more than 80% year on year.

For a long time, the proportion of private enterprises in the total import and export value has been relatively small, and most enterprises have yet to open up the international market through effective channels. However, in the past two years, private enterprises in Daqing city have paid more and more attention to product innovation, the technological content of products has been continuously improved, and the quality of products has been more strictly controlled. This is the key for private enterprises to continuously win the international market and increase their international share.

Recently, the reporter came to the production workshop of Zhaozhou County ruitai Agricultural and Sideline Products Co., Ltd. and the workers were nervously processing black garlic.
South Xiaowei, head of the enterprise, said that the domestic producers of black garlic are mainly in Shandong and Henan provinces. At present, ruitai Agricultural and Sideline Products Co., Ltd. is one of the few producers of black garlic in the three northeastern provinces. Its products are mainly exported to Vietnam, Malaysia and Thailand. With the continuous expansion of the enterprise’s production scale and raw material base, the market for products is continuously expanding and the order volume is also increasing. It is estimated that by the end of the year, the enterprise can earn more than 70 million yuan in foreign exchange through export.

With the optimization of the business environment in Daqing City, the number of private enterprises is increasing and their innovation ability is also increasing.
In recent years, the change of mass consumption consciousness and the surge of consumption demand have brought great opportunities to the cold drink industry. Challenges and opportunities coexist, and power and pressure coexist. Facing new opportunities, “Ruby” takes “the belt and road initiative” as its main line, actively develops economic cooperation relations with countries along the line, and gradually launches a comprehensive international strategic layout. With its keen insight into the market and excellent product quality, ruby series products have been exported to Canada and Vietnam many times.

Zhaozhou is the main producing area of Chinese cabbage in our province, which produces more than 300,000 tons of Chinese cabbage every year. Relying on this advantage, Zhaozhou has introduced a leading Chinese cabbage processing enterprise to process and produce kimchi. At present, the first batch of vegetables produced by the enterprise has been exported to South Korea and is very popular with South Koreans.

It is understood that the major importers and exporters in Daqing are still state-owned enterprises. From January to September this year, the import and export of state-owned enterprises reached 72.977 billion yuan, up 15.54% year on year, accounting for 94.23% of the city’s total import and export value. Private enterprises’ import and export reached 806 million yuan, up 83.75% year on year, accounting for 1.04% of the city’s total import and export value. Foreign-funded enterprises’ import and export reached 3.665 billion yuan, down 9.4% from the same period last year, accounting for 4.73% of the city’s total import and export value.

Although the total import and export value of private enterprises is low, the growth rate is large. Statistics released by Daqing Municipal Bureau of Statistics show that in 2018, private investment increased 56.4% year-on-year, boosting the city’s investment by 16.7 percentage points.

Reporters learned that Daqing city will continue to expand and strengthen the main body of the private market, earnestly implement a series of policies and measures for the development of the private economy, clean up and streamline the administrative examination and approval items and fees related to private investment management, standardize the behavior of intermediate links and intermediary organizations, substantially reduce the cost of various elements of private enterprises, and make the private economy the most dynamic economic growth point.

Seize the opportunity for development Build and Use Foreign Cooperation Carrier Platform In recent years, Daqing city has seized development opportunities, actively integrated into the national “the belt and road initiative”, “Longjiang Economic Belt” and Heilongjiang Province’s “China-Mongolia-Russia Economic Corridor” construction, adopted the “Please Come in and Go Out” approach, focused on developing friendly city relations, developed close economic and trade cooperation with Belgium, Germany, Israel, the Netherlands, Mongolia, Russia and other countries, and continuously expanded “international vision”, not only allowing Daqing products to go abroad, but also introducing international capital and international technology into Daqing.

Foreign trade enterprises have increasingly diversified ways to expand their markets. Participating in exhibitions is an important way for Daqing enterprises to carry out foreign cooperation.
In June this year, 65 enterprises in anniversary took part in the 6th Sino-Russian Expo and 30th Harbin Fair with “housekeeping” products, and exchanged talks and cooperated with domestic and foreign merchants with the most sincere attitude. During the exhibition, they also took part in the second Sino-Russian Local Cooperation Forum, the “Silk Road E-commerce” government-enterprise interface meeting between China and Russian-speaking countries, the Heilongjiang-Guangdong counterpart cooperation and economic and trade exchange forum and other economic and trade activities.

At the Harbin Fair, the products brought by Daqing enterprises attracted the attention of all, and many enterprises took back the orders.

Zhipeng Xu, chairman of China Carbon Company, who participated in the Sino-Russian Expo and Harbin Fair for the fourth time, said that every time he participated in such an exhibition, he would bring more market channels for enterprises. The exhibits brought by the company show the characteristics of finer industries and longer and deeper product chains, attracting the attention of many foreign businessmen.

“At present, we export many products, such as customized ski costumes for Russians, and also exported to Japan.” Zhipeng Xu said.

It is understood that in recent years, Daqing city has actively organized enterprises to participate in the exhibition, carry out trade negotiations, carry out project docking and product promotion activities, and set up a good platform for enterprises to explore foreign markets.

In addition, Daqing also encourages enterprises to participate in overseas exhibitions. For enterprises participating in overseas exhibitions, the customs will actively apply for financial subsidies for small and medium-sized enterprises to develop the international market, and support Daqing enterprises to meet customers, obtain orders and develop the international market.

It is understood that last year, Daqing organized 31 enterprises to attend the first China International Import Expo in Shanghai to study, exchange and negotiate in order to look for business opportunities, so as to speed up the industrial restructuring of Daqing with a more open vision and find a new way with better economic structure.

With the continuous expansion of import and export scale in Daqing City, the types of import and export commodities are also increasing.

Data show that from January to September, Daqing exported 94 categories of 846 varieties of commodities, an increase of 21 categories and 273 varieties over the same period last year. There were 349 varieties of 44 categories of imported commodities, an increase of 53 varieties over the same period last year.

“Hard Core” Policy Frequently Appears Helping Enterprises “Sail to Sea” Lightly In order to help enterprises expand their exports, Daqing Customs has continuously improved its services and enhanced the efficiency of government services.

Actively strive for and make good use of the central foreign trade development funds. In accordance with the requirements of the central foreign trade special funds, combined with the actual situation of Daqing foreign trade enterprises, make full use of the central foreign trade development special funds. Stimulate the enthusiasm of enterprises to carry out foreign trade and promote the development of Daqing’s foreign trade.

In addition, Daqing city has selected 15 key supporting enterprises from the key industrial projects of “100 construction projects”. customs staff have voluntarily entered the enterprises to provide accurate policy support for the development of the enterprises and to solve the difficulties of the enterprises one by one on the spot. Now, we have visited and investigated Heilongjiang Yili dairy co., ltd, Heilongjiang yipin biotechnology co., ltd and other enterprises, and carried out on-site office work for the export of yipin biotech products.

In the next step, Daqing city’s key work is to promote large foreign trade projects. Strive for the eastern Russian natural gas project to land in Daqing, and do a good job in the tracking service of the project. Follow up Daqing Lianyi’s 5.5 million tons/year heavy oil catalytic thermal cracking project, do a good job in the declaration of crude oil import qualification, and grasp the progress of the project in a timely manner.

Since the beginning of the year, Daqing Customs has continuously optimized its foreign trade environment and promoted cross-border trade facilitation. The “internet plus Reservation Customs Clearance” mode has been implemented. Enterprises are encouraged to declare to the customs in advance before the goods enter the country, and non-inspection goods can be released and lifted off upon arrival at the port, further reducing the clearance time. Business approval realizes the two-way choice of “offline+online”, offline business approval “one window”, online application of “internet plus Customs” platform, and realization of “One Netcom Office” … In order to speed up the construction of a more dynamic, more efficient, more open and more convenient foreign trade business environment, Daqing Customs has formulated 14 specific measures and task breakdown forms to “escort”.

In order to effectively reduce the tax burden on foreign trade enterprises, starting from April 1 this year, if the original VAT rate of 16% is applied to imported goods, the tax rate will be adjusted to 13%; If the original 10% VAT rate was applied, the tax rate will be adjusted to 9%. Daqing’s main imported products such as crude oil and auto parts can all enjoy this preferential tax rate.

According to the amount of VAT collected last year, it is estimated that about 2.2 billion yuan of VAT will be saved for import and export enterprises in 2019, so that enterprises can really feel the dividends brought by the tax reduction reform policy.