Jiaxing’s innovative foreign exchange services help the silk industry “break out of cocoons and become butterflies”
In Jiaxing, Zhejiang, mulberry silk is woven into gorgeous fabrics with its unique texture and complicated weaving techniques. For thousands of years, the silk trade in the Jiaxing area has been bustling. Zhang Yanchang, a calligrapher of the Qing Dynasty, described it as “where to sell new silk reeled, the new silk in the east is sold in the new line in the north.” As the country’s largest silk industry and largest trading platform, the China Cocoon Silk Market has also emerged. Silk products companies of all sizes gather here to trade.
Nowadays, in any corner of the world, when two companies want to negotiate silk fabric or clothing business, they must refer to the transaction price announced by the China Cocoon Silk Market – the “Jiaxing Index”. A silkworm and a thread closely connect Jiaxing to the world.
In the past two years, due to the impact of the epidemic and the global economic environment, Jiaxing silk products foreign trade companies have entered the “cold winter period”. Many companies’ order volume has dropped sharply, foreign trade business has almost stopped, and the four words “business is difficult to do” have become The common aspiration of many silk products foreign trade companies in Jiaxing at present.
“In recent years, our company has been plagued by rising labor costs, constant trade frictions, and transportation and logistics obstructions. Fortunately, there is a new offshore international trade business that has helped us optimize the industrial chain.” A relevant person in charge of a silk company said, As a leading enterprise in the silk industry established nearly 40 years ago, the company’s main business is silk, silk, and clothing. Its products are mainly exported to Europe and the United States, of which the U.S. market accounts for 40%.
In order to improve the level of trade liberalization and facilitation and promote the healthy, sustainable and innovative development of new foreign trade formats and models, on the day when the new offshore international trade-related facilitation foreign exchange policies were implemented, the Jiaxing Central Branch of the State Administration of Foreign Exchange (hereinafter referred to as “Foreign Exchange”) Jiaxing Central Branch of the Bureau) contacted the handling bank and jointly went to the silk company to encourage the company to use the form of entrusting overseas processing to carry out production and sales, and adjust the traditional domestic production and then direct export method to export surface accessories to Cambodia, from Cambodia Local companies produce and process garments, which are exported from Cambodia to the United States.
“We have guided enterprises to make differentiated declarations and guided banks to simplify settlement documents, which has solved the problem of enterprises that ‘the amount of foreign exchange collected is greater than the amount of exports, and the excess amount is not allowed to be recorded’.” Relevant person in charge of the Jiaxing Central Branch of the Foreign Exchange Administration Said that the convenient foreign exchange policy makes the collection and payment of funds more flexible, successfully saving enterprises more than 10 million yuan in labor, taxes and other costs.
This company is not alone. In Tongxiang, Jiaxing, the “Hometown of Silk Quilts in the World”, there are many silk quilt production workshops and small and medium-sized enterprises. Due to their small scale, they have long used traditional trade for export sales. Affected by various factors, orders from old customers have dropped sharply, and the popularity of live streaming has made companies both excited and hesitant.
“How to settle online sales funds?” “What should I do if there is a difference in settlement?” In the past few days, the Jiaxing Branch of the Foreign Exchange Administration has fully investigated various questions and demands of enterprises in the industry, and held multiple cross-borderE-commerceForeign exchange policy training will answer questions one by one, providing reassurance for enterprises to carry out cross-border e-commerce exports.
“The cross-border e-commerce sales model not only allows us to have more customers, but also makes fund settlement more convenient. Through netting settlement, the company’s capital occupation and exchange rate fluctuation risks are significantly reduced, and bank handling fees and exchange losses are saved by more than one year. 50%, effectively reducing our financial costs!” the relevant person in charge of a textile company in Tongxiang said excitedly.
“We will persist in guiding enterprises to transform their production and sales paths, broaden sales channels, facilitate fund settlement, and transform foreign exchange policies into a ‘golden key’ to solve difficulties, helping the silk industry to break out of its cocoon and become a butterfly. ‘, and embark on a unique ‘Silk Road’.” The relevant person in charge of the Jiaxing Central Branch of the Foreign Exchange Administration told reporters that since this year, Jiaxing silk products companies have accumulated export earnings of 420 million US dollars, a year-on-year increase of 57%.
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