An introduction to the difficulties of small and medium-sized enterprises in foreign trade and their countermeasures

Difficulties of SMEs in international trade

  (1) The constraints of macroeconomic and policy environment

  First of all, the continued slow appreciation of the RMB is a huge test for export enterprises, from a short time for analysis, some small and medium-sized enterprises with weak profits will suffer a very strong shock, for some competitive product manufacturers, although they can withstand the impact of rising costs brought by the appreciation, but still have a serious impact on the development of enterprises. However, in the long run, RMB appreciation can divide foreign export enterprises, and to a certain extent, it has the effect of optimizing the allocation of resources: enterprises that can transform and optimize their industrial structure in time, that is to say, enterprises that can realize the transfer from low value-added industries to high value-added industries, will be able to withstand this test and obtain great development opportunities; for some enterprises that cannot realize the successful transformation in time, the development space will be very limited. For some enterprises that cannot achieve successful transformation in time, the development space will become smaller and smaller, and in the process of continuous slow appreciation of RMB for several years, the profits will be squeezed continuously, and the vitality will be lost gradually, which will eventually lead to extinction.

  (2) Financing difficulties

  The current structure of China’s financial system is objectively unfavorable to SMEs. Now China’s major large formal financial system, are state-owned and operated by the state monopoly. With a strong brand of planned economy, credit allocation and securities issuance will be tilted to state-owned enterprises, so SMEs will be subject to exclusion and have difficulty in obtaining relevant financing support. In addition, China’s foreign exchange control has always been relatively strict, international capital flows are strictly controlled by the Chinese government, so SMEs can use very limited foreign capital. However, the approval conditions for the establishment of Sino-foreign joint ventures are too harsh, so it is basically difficult for most small-sized SMEs to realize.

  (3) Single commodity structure

  The proportion of high-tech products in SMEs is very low, resulting in an extremely uncoordinated structure of their products. Along with the development of society, high-tech products, represented by information technology, have become a new highlight to promote the rapid growth of China’s imports and exports. The competitive advantage of SMEs’ product exports is generally based on the comparative advantage of labor and resources,. Because of the low technological content of their products, low value-added, low profit margin, and many sources of profit rely on export tax rebates, they are at a competitive disadvantage, and once international competition intensifies, their efficiency will continue to decline.

  (4) Chaotic export order

  Due to the small variation of export commodities, the product is relatively single, resulting in very fierce competition in the industry. In addition, small and medium-sized enterprises are generally small, there is no way to understand the international market as well as the overall grasp of foreign markets, poor adaptability, so the price has become their main weapon of competition. They tend to get orders through vicious price competition, by way of price reduction. Some enterprises even participate in foreign project bidding, the goal is not aimed at foreign enterprises, but to suppress domestic counterparts.

Countermeasures for the development of foreign trade of Chinese SMEs

  (1) Improve management capacity

  Generally speaking, the enterprise property rights and personal property rights of SMEs are often mixed with each other, and they have great disadvantages in the system. If they want to develop, they should realize the transformation from the traditional owner system to the modern enterprise system as soon as possible, gradually realize the separation of capital ownership and management rights, and transfer the enterprise management rights to the hands of the managerial class to meet the requirements of the continuous development of modern enterprises; they should overcome the shortage of centralized management The quality of enterprises should be improved through management innovation.

  (2) Enhanced core competitiveness

  If trade export enterprises want to have an advantage in the competition, they must enhance the core competitiveness of their products. The core competitiveness of products is mainly determined by their technical factors, which are the key to their competitive advantages, so enterprises must strengthen their technological research and development, improve their independent innovation capabilities, and strive to lead in technology; at the same time, talents are the driving force and source of enterprise development, so enterprises must pay attention to the training, management and introduction of their talents, and strengthen the construction of entrepreneurial teams; for cultural construction, the enterprise’s Cultural construction determines the development concept of the enterprise, which can enhance the cohesion of the enterprise and is the key to its ability to develop the consumer market.

  (3) Adjusting the structure of export commodities

  With the continuous deterioration of the environment, the world’s concern for the environment has become increasingly heavy, low-carbon has become an important aspect that must be paid attention to in the process of enterprise development, so enterprises must seriously study the basic trend of the green consumption wave in developed countries, vigorously promote clean production, the development of non-polluting and less polluting products of industry, and constantly realize the transformation of enterprise development to environmentally friendly. Make environmental indicators and other quality indicators together constitute the connotation of quality products, so as to achieve sustainable development of enterprises. We should take green industry as an important direction to enhance the export industrial structure, implement strategic industrial policies, support them through fiscal, taxation, financial and other preferential policies, cultivate the advantages of economies of scale, improve the ability of enterprises to prevent and control pollution, provide assurance for the sustainable development of enterprises, and establish a good image for similar enterprises in China in international competition.


In order to meet the challenges and achieve healthy development, SMEs must strengthen their own transformation, constantly carry out management innovation and product technology transformation to increase the core competitiveness of enterprises, and should also attract more outstanding talents by providing excellent working conditions, reasonable distribution of benefits and a relaxed development environment. We believe that through strengthening the transformation of their own, as well as government policy support, China’s SMEs in foreign trade, will certainly obtain greater development.