Decoding the Integration of Domestic and Foreign Trade: Foreign Trade Enterprises Remain Enthusiastic About Expanding Domestic Sales; How to Overcome the Bottlenecks and Pain Points?

"Through the 'China's Premium Foreign Trade Products Nationwide Tour,' we discovered that the domestic market potential is greater than expected,"

said a staff member from the marketing department of Tianjin Hanjiang Technology Co., Ltd. to a Cailian Press reporter. Recently, the 4th China-CEEC Expo & International Consumer Goods Fair (hereinafter referred to as the CEEC Expo) was held in Ningbo, Zhejiang. Cailian Press noted that this year's CEEC Expo featured a dedicated zone for the "China's Premium Foreign Trade Products Nationwide Tour," showcasing over 100 high-quality foreign trade products such as smart home appliances, helping export enterprises expand into the domestic market.

Currently, nearly a month has passed since China and the U.S. issued the Geneva Joint Statement and agreed to a 90-day tariff window period. Beyond accelerating export shipments, foreign trade companies remain enthusiastic about expanding domestic sales.

Recently, the Ministry of Commerce held a regular press conference, where spokesperson He Yongqian stated that efforts will be made to successfully organize the "China's Premium Foreign Trade Products Nationwide Tour," facilitating procurement collaborations between associations, supermarkets, e-commerce platforms, and export enterprises, and encouraging more companies in sectors like automobiles, home appliances, and home furnishings to join the "trade-in" policy.

He Yongqian emphasized deepening the pilot program for integrated domestic and foreign trade to enhance companies' capabilities in operating across both markets and better address external risks and challenges.

Faced with an external environment marked by increasing complexity, severity, and uncertainty, China's vast domestic market serves as a strong backing for export enterprises. The commerce authorities are taking multi-faceted measures to support companies in exploring diversified international markets while helping them better leverage the domestic market to effectively cope with external shocks and challenges.

Industry experts believe that more companies are realizing that integrated domestic and foreign trade operations are not merely about clearing inventory but represent a crucial means to expand development space, reshape market competitiveness, and meet the inevitable requirements for building a new development paradigm and promoting high-quality growth.

Leveraging the "China's Premium Foreign Trade Products Nationwide Tour," Export Enterprises Maintain Strong Interest in Expanding Domestic Sales

Recently, the "2025 Shandong Foreign Trade Premium Products Shopping Season" and the "China's Premium Foreign Trade Products Nationwide Tour" Shandong Station event kicked off at the Shandong International Convention and Exhibition Center, where over 400 export enterprises participated in exhibitions and sales, sparking a consumption boom.

To further assist export enterprises in tapping into the vast domestic market, the Shandong Department of Commerce unveiled the "Five Empowerment Actions" plan, covering policy, mechanism, channel, financial, and brand support, to smoothen domestic sales channels for export enterprises and stabilize foreign trade while boosting consumption.

Wang Lei, Director of the Shandong Department of Commerce, stated during the event that efforts will focus on key industries such as electronics, home appliances, and home furnishings, guiding retailers participating in the consumer goods trade-in policy to actively engage with export enterprises and include eligible products in the policy support scope.

A reporter from Cailian Press learned from the Department of Commerce of Shandong Province that, in order to effectively respond to changes in the international trade environment and accelerate the integration of domestic and foreign trade, the Department of Commerce, in collaboration with relevant departments, will fully organize and implement the "Five Major Initiatives" to empower foreign trade enterprises to expand domestic sales. Among these initiatives is the guidance for merchants involved in the trade-in of consumer goods, focusing on key industries such as electronics, appliances, home furnishings, and interior decoration, to actively connect with export enterprises and include products that meet standard requirements within the scope of policy support.

Tianjin Hanjiang Technology Co., Ltd. has long been engaged in toll processing of small home appliances such as blenders and air fryers for European and American markets. Affected by fluctuations in overseas orders, the company is currently actively exploring the domestic market through the "China Tour for High-Quality Foreign Trade Products" campaign, and has seen a significant increase in orders in the first quarter of this year.

A person in charge of the company's marketing department told a reporter from Cailian Press that through the "China Tour for High-Quality Foreign Trade Products" campaign, they have discovered that the domestic market has greater potential than expected. With the government providing the platform and enterprises taking the lead, the team now studies live-streaming e-commerce and community marketing every day, indicating that the path of transitioning from foreign trade to domestic sales is the right one.

The Anhui leg of the "China Tour for High-Quality Foreign Trade Products" campaign was also recently launched. The event unveiled 100 new consumption scenarios, Anhui Province's boutique tourism routes, the economic situation of Anhui's first stores, and measures to assist foreign trade enterprises in expanding domestic sales. There were also 75 featured booths set up on-site, with simultaneous sales promotions organized for Anhui's high-quality foreign trade products, time-honored brands, popular online goods, and high-quality products from the Yangtze River Delta region, fostering a consumer-friendly atmosphere.

The Hunan leg of the "China Tour for High-Quality Foreign Trade Products" campaign attracted over 600 exhibitors from more than 20 provinces and 15 countries, as well as over 2,000 domestic and foreign buyers. It is reported that in order to further stimulate the development momentum of the integration of domestic and foreign trade, Hunan Province will focus on cultivating 50 "Three Same" brand enterprises and 100 "Three Same" brand products this year.

Shifting Focus: Foreign Trade Enterprises' Marketing Strategies Begin to Change

Against the backdrop of increasing uncertainties in the external environment, China has taken the "China Tour for High-Quality Foreign Trade Products" campaign as a breakthrough point to accelerate the integrated development of domestic and foreign trade and assist foreign trade enterprises in exploring the domestic market. However, multiple challenges still need to be overcome during the promotion process.

One of these challenges is the change in business strategies.

China Pet Products Co., Ltd., located in Shandong, is a well-established pet food export enterprise. In recent years, with changes in the external environment and the rapid growth of the domestic pet market, China Pet Products has also shifted its focus to the domestic market, launching brands such as WANPY, LEADING TREATS, and ZEAL.

"Our current marketing focus is definitely on the domestic market," a new media marketing staff member from the WANPY brand told a reporter from Cailian Press. "In the past, we mainly engaged in toll processing for pet food exports, which was primarily B2B business. Compared to the past, the biggest characteristic of the domestic market is the shift from B2B to B2C. For us, this change is significant. The company used to be very low-key in the domestic market, but now it recruits many liberal arts graduates like me. Xiaohongshu (Little Red Book) is our battlefield."

Benefiting from the growth of its domestic business, China Pet Products Co., Ltd. achieved revenue of 4.465 billion yuan in 2024, up 19.15% YoY, and net profit attributable to shareholders of the parent company of 394 million yuan, up 68.89% YoY.

A reporter from Cailian Press learned that the commerce department is introducing multiple measures to help foreign trade enterprises overcome challenges in expanding domestic sales.

For example, in Shandong, a reporter from Cailian Press learned from the Shandong Provincial Department of Commerce that it is implementing a channel empowerment initiative, guiding large commercial chain enterprises to leverage their channel advantages, connecting with foreign trade enterprises, opening rapid response channels for qualified products, establishing dedicated "Premium Foreign Trade Products" sections and counters to enable rapid product listing and sales. In terms of online channels, a series of activities such as the "Premium Foreign Trade Products Cloud Shopping in Qilu" e-commerce promotion, national key e-commerce platforms entering foreign trade industrial belts, and "Premium Foreign Trade Products" selection and matching events have been launched. The "Shandong Premium Foreign Trade Products Pavilion" has been established to deliver more high-quality foreign trade products to the domestic market at e-commerce speed.

Zhi Peiyuan, Vice President of the Investment Committee for Publicly Listed Firms of the Investment Association of China, suggested that in terms of digital tool application, foreign trade enterprises can leverage big data analysis on e-commerce platforms to understand consumer demand and purchasing behavior, enabling precise product selection and marketing. They can also optimize internal management processes and improve operational efficiency by utilizing Enterprise Resource Planning (ERP) systems.

Zhan Junhao, a renowned strategic positioning expert and founder of Fujian Huace Brand Positioning Consulting, said in an interview with a reporter from Cailian Press that e-commerce platforms broaden sales channels for premium foreign trade products through traffic support and the establishment of dedicated sections, while offline exhibitions provide platforms for product display and exchange. In the future, an integrated online-offline model could be explored, such as combining 3D virtual exhibition halls with local sample rooms, or inviting internet celebrities to live-stream production processes while simultaneously launching promotional sections on platforms.

Relevant Departments Promote Standard Alignment to Facilitate Export-to-Domestic Sales Transition

Compared to changes in business strategies, standard discrepancies pose another challenge.

There are certain differences between domestic and overseas standards, ranging from technical and quality standards for export products to inspection, quarantine, certification, and accreditation. When export products are redirected to the domestic market, how to comply with domestic market standards and obtain domestic certifications remains a challenge for many foreign trade enterprises.

Shenzhen Xinshui Technology Co., Ltd., which has long exported Bluetooth headsets to European and US markets, decided to expand into the domestic market this year due to tariff fluctuations.

"In the past, our products were mainly targeted at the European and US markets, meeting international certification standards such as CE and FCC. However, after shifting to the domestic market, we found significant differences in technical standards and certification processes between domestic and overseas markets. For example, domestic requirements for radio model approval (SRRC) and 3C certification (CCC) for Bluetooth headsets are not fully compatible with EU standards, which posed some compliance challenges for us in the initial stages," said Li Bing, the marketing manager of the company, to reporters.

Li Bing told reporters that in order to quickly adapt to the domestic market demand, the company actively collaborated with domestic testing institutions to localize its products, including optimizing RF parameters and adjusting battery safety designs, to ensure compliance with GB national standards. Meanwhile, the company is also exploring the "same production line, same standards, same quality" model, enabling products for both domestic sales and exports to be produced under the same quality system, ensuring compliance and enhancing consumer trust.

Cailian Press reporters learned that relevant departments are conducting surveys on the alignment of standards and certifications for foreign trade products, organizing comparisons between domestic and international standards to enhance consistency, removing bottlenecks for the domestic sales of export products, and creating a softer environment that better promotes the integration of domestic and foreign trade.

For instance, in Shandong, Cailian Press reporters learned that the Shandong Provincial Department of Commerce has improved and refined the three-level (provincial, municipal, and county) collaborative linkage mechanism, dynamically investigating the situation of products facing export barriers. For key export enterprises, it has adopted a "one enterprise, one policy" approach, developing targeted support plans categorized by issue, and strengthening policy support and service guarantees to address difficulties and bottlenecks in market access, standard alignment, brand certification, and channel development.

Zhu Keli, Executive Director of the China Information Industry Association and Founding Dean of the Guoyan New Economy Research Institute, said in an interview with Cailian Press reporters that resolving the deep-seated contradictions in transitioning from foreign trade to domestic sales requires the construction of a dual-circulation operating system. For example, the industrial product cross-border e-commerce platform being piloted in Suzhou is worth learning from. It disassembles the surplus capacity of export enterprises into customizable modules, allowing domestic buyers to combine their needs like assembling Lego blocks. This not only digests surplus capacity but also stimulates innovation among small and medium-sized enterprises. More importantly, it bridges the standard systems for domestic and foreign trade. The "same production line, same standards, same quality" certification promoted by Qingdao Customs enables products from a single production line to freely switch between international market access and domestic quality inspection labels. In the future, the cross-border industrial enclave model could be explored, encouraging platforms to establish demonstration bases for transitioning from foreign trade to domestic sales in bonded zones, leveraging cross-border e-commerce data chains to achieve global inventory sharing. This is the fundamental solution to addressing trade barriers.