1 The adverse impact of the international financial crisis on China’s import and export trade

(1) The supply of China’s import and export trade market is reduced.

With the continuous reform of market economy, a series of import and export trading companies emerged in China. However, because they did not carry out capital export, the way of profit is relatively single, and only carried out simple import and export business.

These trading companies mainly import raw materials from abroad, while the products are sold to foreign markets. The United States is an important trading partner in China’s international trade market, and most American supermarket products bear the “Made in China” logo.

However, the impact of trade between the U.S. and China is two-way. After the outbreak of the financial crisis in the United States in 2008, its domestic consumer demand fell, leading to a gradual decline in the volume of imported products, reducing the foreign market share of China’s import and export trading companies, resulting in a backlog of products in many international trading companies in China to varying degrees. At the same time, first of all, China’s raw material market is also mostly from abroad, the impact of international financial trade makes China’s import and export trading company’s raw material supply is insufficient.

Secondly, China is a big manufacturing country in the world, but not yet a manufacturing powerhouse. China’s manufacturing industry is mainly engaged in the manufacture of products with low originality, and the relevant enterprises generally lack the sense of innovation and patent awareness. Most of the products manufactured in China are electronic products, chemical fiber products, garments, footwear and toys, etc., which lack creative patents and labor-intensive products, and the added value of manufacturing such products is low.

When the international financial crisis breaks out, each country will have some changes in trade protection policies. These policy changes increase the international trade barriers and lead to a sharp decrease in the market share and market share of our low-end products.

For example, garment, textile, toy and other industries, in the international trade of the market export dependence is high. In the wake of the international financial crisis, business performance has rapidly decreased. In some areas of China’s garment export enterprises profit less than 1%, and after the outbreak of the financial crisis, international orders less than 1/3 of the original. low profits, fewer orders is China’s post-financial crisis international trade manufacturing facing the problem.

(2) The appreciation of the RMB leads to import and export trading companies will face a series of business difficulties.

As the impact of the international financial crisis led to the continuous depreciation of the U.S. dollar, and the accelerated appreciation of the RMB, which will lead to a sharp increase in the price of products exported to foreign countries, thus increasing the cost of products.

After the outbreak of the financial crisis, the domestic demand of each country was effectively reduced, resulting in the reduction of the share of China’s products in the international market, and the operating pressure of China’s import and export trading companies also gradually increased. In addition, with the increase of China’s reform and opening up, the increase of the degree of openness, the continuous progress of science and technology, the rapid development of the economy, the increase of the degree of automation of production, the rising cost of human resources in China, Chinese enterprises have lost the advantage of low labor costs, further aggravating the reduction of profits of trading companies.

Since the outbreak of the financial crisis in the United States in 2008, it has led to a constant depreciation of the U.S. dollar, thus making it impossible for most of China’s export trading companies to better solve their business crisis. Of course, the appreciation of the RMB has also further increased the investment costs of Chinese companies in terms of labor and equipment acquisition.

In the cost continues to rise, the business status quo is not prosperous enough, part of the foreigners will withdraw their investment costs, which is tantamount to a disaster for Sino-foreign joint ventures, which has a serious impact on the business development of this enterprise, and sometimes leads to bankruptcy.

(3) the outbreak of the international financial crisis led to import and export trading companies face more serious survival risks.

Due to the outbreak of the financial crisis, most countries’ economic development prospects are often not optimistic enough, or even see any prospects, thus inducing the phenomenon of lower domestic employment and lower corporate profitability, etc. In order to better alleviate the above problems, governments have to adopt trade protectionist policies to achieve a surplus in international trade. Governments tend to take, for example, restrict polluting enterprises, require green nature and technical trade protection means. However, these measures will lead to a large number of low value-added products in China are currently boycotted by some countries, in, for example, textiles, food, low-end clothing and other industries will suffer a relatively serious impact.

At the same time, other forms of trade protection strategies will also raise international trade barriers, further increasing the difficulty of business operations of China’s import and export trading companies. What’s more, some problems about the quality of China’s products have emerged, further aggravating this phenomenon.

China’s food safety has been subject to unbridled speculation by the United States, and safety issues on aquatic products and environmental protection have seriously affected the credibility of Chinese products in international trade. The emergence and change of trade protection policies have led to trade frictions in the international arena.

In the midst of trade friction, most trading companies will choose to hold their breath, even if their products are returned, they are not willing to defend their legitimate rights and interests through other means, which leads to these companies suffer relatively large economic losses.

On the contrary, if they can defend their legitimate rights and interests by means of international lawsuits, although they maintain their own reputation and reduce a large amount of economic losses, but the high agency fees will also bring a greater economic burden for the future development of the enterprise, which is extremely detrimental to the development of China’s enterprises.

In addition, in order to be able to temporarily cancel orders from abroad, it is necessary for some trading companies to face the pressure of fierce competition in the international market, in order to obtain the development of the sword has to take the way of credit sales settlement. The credit sales settlement method makes the enterprise will then bear the impact of foreign business risks, increasing the risk of collecting foreign exchange.

Once the global financial crisis breaks out, the overseas financing and domestic financing of manufacturing enterprises will be seriously affected, resulting in poor liquidity of the enterprises. In this case, the way to solve the problem is often to rely on banks to solve the capital problem. However, to get financial help from banks, they need to accept high interest rates.

2 Strategies and basic ways to solve the financial crisis

(1) Change the development mode of domestic economy.

After the outbreak of the international financial crisis, the economies of all countries in the world have been hit seriously, and China is no exception, thus exposing the defects and deficiencies in the process of our economic development.

Most of China’s industries have become overly dependent on product exports, but domestic consumers’ demand for this part of the products is relatively low. After the outbreak of the global financial crisis, the foreign market share decreased and the domestic market demand was not high enough, thus having a serious impact on the development of enterprises.

In order to effectively improve the above-mentioned situation, our government departments need to reform and innovate the existing economic adjustment policies and adopt a series of ways to effectively stimulate the domestic consumption pattern. Measures can be taken to balance income and distribution, increase health insurance, and raise the wages of urban residents, among other ways.

At the same time the country has a huge potential of rural consumers that needs to be tapped further and deeper.

Therefore, in order to cope with this situation, China has promulgated a series of policies to benefit the rural areas, such as by means of cars to the countryside and home appliances to the countryside, effectively expanding this market in the rural areas. In addition, enterprises also need to continuously optimize their own products to better enhance the added value of products.

To boost domestic demand, the degree to be achieved is that the main sales of these products are still the home market even if the consumer demand abroad is reduced.

(2) Import and export trading companies to improve their own innovation capabilities.

Although China belongs to a large manufacturing country, but has not reached the standard of manufacturing powerhouse. The most prominent performance is the inability to effectively innovate products, these are the shortcomings of China’s enterprise development, will restrict the economic development of China. This is also the main reason why our country has been hit hard in terms of import and export.

Therefore, in order to effectively improve the import and export trading company’s corporate competitiveness, it is necessary to pay attention to their own innovation capabilities and enhance their own innovation capabilities. The first point is that the relevant enterprises in China should continuously optimize their product structure and propose innovative and creative product marketing strategies.

At the same time, enterprises also need to pay great attention to their own brand strategy, and do their best to develop their own local international brands, to enhance the market competitiveness of enterprises. Therefore, enterprises also constantly improve their own management capabilities, innovate their own management models, and complete the construction of basic management and model innovation to improve the efficiency of the enterprise organization and management with scientific and efficient innovative management methods.

In addition, enterprises also need to choose an effective capital export method, introduce a company merger policy, and build an industrial cluster with core competitiveness, so as to effectively improve the resistance of enterprises to financial risks.

3 Conclusion

China’s reform and opening-up policy has been implemented for 40 years and has achieved huge economic benefits, and China’s participation in economic globalization is getting deeper and deeper This economic globalization development is a double-edged sword for a large developing country like China.

Our economic development will be more and more vulnerable to the influence of international capital economy, and this influence is especially prominent in the international financial crisis. Economic globalization?Ю poke hiss? has also brought unprecedented challenges. In response to the financial crisis, China can only grow our import and export trade by adjusting the structure of economic development and improving the comprehensive competitiveness of enterprises.