China Advances Integration of Domestic and Foreign Trade for Balanced Development

The integration of domestic and foreign trade stands as a key strategic initiative for China to build a strong domestic market and promote higher-level opening-up. This year’s Government Work Report explicitly calls for advancing the integrated development of trade, investment and domestic-foreign trade, marking a clear direction for the country’s economic development in the near term.

A member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), who specialises in economic research, notes that the integration of domestic and foreign trade helps China make full use of both domestic and international markets, enhance their connectivity, and plays a crucial role in accelerating the construction of a unified national market.

Field investigations into cross-border e-commerce industrial parks and foreign trade enterprises show that leading enterprises demonstrate relatively strong adaptability in the face of the integration trend, while small and medium-sized enterprises (SMEs) are confronted with certain challenges. A major issue lies in the inconsistency between domestic and international standards, as most products are subject to significant differences in standards across countries.

Foreign trade enterprises have long produced goods in line with specific international standards, with their production equipment, technologies and processes mostly adapted to overseas requirements. The shift to domestic sales now requires these enterprises to align their production with domestic standards, which triggers adjustments in production processes, workflows and even logistics, leading to additional conversion costs.

The CPPCC member points out that foreign trade enterprises have traditionally focused on overseas markets and now need to turn their attention to the domestic market. China’s advantage of a super-large-scale market provides ample space for enterprises to expand domestic sales based on their export capabilities. For enterprises, accelerating the integration of domestic and foreign trade can reduce the impact of changes in the external environment.

It is imperative for relevant enterprises to change their mindsets, abandon outdated experiences, focus on improving product added value and technological content, align with higher standards, and adjust their production and sales strategies in a timely manner.

During the 15th Five-Year Plan period, China will make better use of domestic and international markets and resources at a higher level to further create new development advantages. The CPPCC member emphasises that promoting market diversification and the integration of domestic and foreign trade is a long-term task that cannot be achieved overnight and requires persistent and pragmatic efforts.

He suggests further improving relevant supporting systems to provide clear guidelines for enterprises, encouraging local governments to explore tailored solutions based on their actual conditions to address the practical difficulties faced by enterprises. Additionally, efforts should be made to enhance enterprises’ operational capabilities, expand market development, strengthen talent support and attach importance to brand building.