Chinese Shoes Need To Enter The Latin American Market With The Most Perfect Posture

Latin American countries are the first group of developing countries. Because their industrial structure is similar to that of China, they frequently set restrictions on China's export products in recent years, and anti-dumping cases have occurred from time to time. "Made in China" has attracted Latin America's attention while making profits locally. Similar industrial structure leads to high barriers. It is reported that in recent years, with a large number of Chinese textiles entering the US market, Mexico's textile and clothing industry has lost more than 20% of jobs. In fact, Mexico, Colombia, Peru and other Latin American countries have mainly filed anti-dumping lawsuits against Chinese goods in the fields of textiles, household appliances, furniture, etc. "From the perspective of China, when looking at domestic enterprises' exports to Latin America, we usually think that Latin American countries are just complementary to our industries. We import raw materials from this place and re export the products to Latin America and other international markets. But from the standpoint of Latin American countries, this practice not only affects their exploration and development in overseas markets, but also encroaches on some local market shares in Latin America. " Wu Guoping, director of the Economic Research Office of the Latin American Institute of the Chinese Academy of Social Sciences, said. Wu Guoping introduced to the reporter that although Latin American countries constantly set restrictions on China's exports to the local market, the trade protection measures of each country are different. For example, Mexico automatically sets restrictions on products imported from China in accordance with the provisions of WTO rules. Although according to the provisions, all trade restrictions will be lifted in December this year, in fact, it is unlikely to be completely lifted, and it will still be controlled in key areas such as textiles; Argentina has to go through customs approval for all products imported from China. If the price of imports is lower than the average price of the world's equivalent products, it will have to increase taxes. The price standard is determined by the price of the same kind of products in the customs catalogue. Wu Guoping said that if Chinese products enter the Latin American market and have an impact on local related industries, such as shoes and textiles, Latin American countries will take some trade protection measures. Although the measures taken are aimed at all imported products that have an impact on the domestic industry, since the number of products imported from China is large, and most of them are labor-intensive products, it can be said that these measures are mainly aimed at China. "In this regard, we should adjust the industrial structure and improve the added value of our products. In the long run, we can not only avoid too many trade frictions with these countries, but also expand the benefits of individual products," he said. Wu Guoping told the reporter: "Unlike developed countries, Latin American countries have taken more traditional trade protection measures against China, that is, more anti-dumping investigations have been initiated, and higher anti-dumping duties have been levied on China's export products through anti-dumping, while technical barriers are less." Enterprises entering the Latin American market must be cautious about rich resources and loose free trade policy environment, which makes many domestic enterprises invest and build factories in Latin American countries. Latin America has become a hot spot for Chinese enterprises to invest overseas. Although there are some advantages in resources and geographical environment that can be used more when investing and building factories in Latin America, there are still many factors that enterprises need to consider when entering. It is understood that Shougang set up a factory in Peru, and the trade union proposed that the enterprise should increase benefits and wages. In June last year, the trade union announced another indefinite strike, and the direct economic loss suffered by Shougang reached 3.51 million dollars. In this regard, Wu Guoping reminded Chinese enterprises to consider multiple aspects when entering the Latin American market. First, unlike China, Latin American countries have relatively strict protection of labor rights and have a relatively complete set of labor policies. The labor force in Latin America also has the freedom of association and strike, and the resulting costs are often ignored by enterprises; Secondly, government policies are easy to change. For example, after the change of governments in some countries, they are likely to make major adjustments to the previous policies, making it difficult for foreign-funded enterprises to cope. For example, recently the Ecuadorian government increased the proportion of profits of foreign-funded enterprises in the oil field to the country from 50% to 99%; In addition, the systems and regulations of developing countries are not perfect. Compared with developed countries, the market risk is relatively high, and there is often no corresponding law to protect enterprises in case of problems; Finally, cultural risks should not be underestimated. Spanish is required for local business activities, but some enterprises think that they can set up factories in the local area only in English. In addition, different countries in Latin America have their own other risks, which need to be considered.