Domestic Demand as a Lifeline: Retailers Support Trade Transition

In a strategic move to bolster its economy, China is witnessing a concerted effort by major retail adn e-commerce platforms to assist foreign trade businesses in pivoting towards the domestic market. This initiative comes at a crucial time, as global trade faces increasing uncertainties.

Industry Leaders Unite to Strengthen Internal Trade

nearly twenty prominent companies, including JD.com, Freshippo, Yonghui, and wumart, have pledged to leverage their resources to facilitate the expansion of domestic sales channels for foreign trade enterprises. This commitment is further reinforced by a joint initiative from seven associations, including the General Chamber of Commerce of China and the China Chain Store & Franchise Association, signaling a unified front in supporting this transition.

Concrete Measures: Streamlining Access to Domestic Shelves

Specific actions are being implemented to ease the transition for foreign trade companies. For example:

• Wumart has established expedited channels, dedicated zones for high-quality foreign trade products, and is offering its intelligent supply chain solutions.
• freshippo is simplifying the registration process for companies on its platform and enhancing its supply chain services.
• Yonghui Supermarket is providing a fast-track system, allowing foreign trade companies facing export challenges to get their products on shelves within fifteen days, along with brand promotion and collaborative new product advancement.

expert insight: A Long-Term Strategy

According to Zhou Mi, a researcher at an institute affiliated with the Chinese Ministry of Commerce, These support programs are designed to mitigate the impact on foreign trade companies and expand their market reach. The integration of domestic and foreign trade is not a temporary fix but a long-term strategy.

The promotion of the integration of interior and outdoor trade is not a temporary measure… China has continued to promote the integrated development of domestic and external trade through multiple initiatives.

Zhou Mi, Researcher, Chinese Ministry of Commerce

This perspective aligns with China’s ongoing efforts to reduce the operational differences between domestic and international trade, strengthen the “dual circulation” economic model, and improve resource utilization efficiency, business competitiveness, and sustainable development.

Government Support and Initiatives

The Chinese Ministry of Commerce is actively assisting foreign trade companies in navigating the shift to the domestic market. HE Yongqian,a ministry spokesperson,recently highlighted the importance of consumer product recovery programs,initiatives like the “Premium Foreign Trade Goods China Tour,” and the integration of domestic and foreign trade as key strategies for exporters to tap into the internal market.

China’s Economic Resilience

China’s vast market potential, supported by policies aimed at stabilizing the economy and foreign trade, positions the nation to effectively manage various risks and challenges. This proactive approach underscores China’s commitment to maintaining a robust and adaptable trade environment.