On April 10, 2025, the U.S. government announced an increase in the tax rate for “reciprocal tariffs” on products imported from China to 125%, and China’s countermeasures also continued to upgrade. This trade friction, known as the “most severe tariff strangulation in history,” feels like a sudden superstorm, catching many foreign trade enterprises off guard. Suddenly, many Export Enterprises faced increased pressure, with a general decline in Orders and severely squeezed profit margins under the heavy burden of high Tariffs.<\/p>\n

The increase in policy risk, fluctuations in tax costs, and the unpredictable nature of orders and market demand have put Chinese <x1> enterprises at a critical crossroads of self-rescue and transformation. In this war without gunpowder, leveraging the power of digitalization to enhance business resilience and compliance capacity is becoming a key asset for companies to navigate through <x1>.<\/p>\n

01<\/b><\/p>\n

Life and Death Breakthrough: The Dilemmas and Challenges of Foreign Trade Enterprises<\/b><\/p>\n

The economic tsunami sweeping across the Pacific is reshaping the global landscape with overwhelming force, and foreign trade enterprises are facing significant challenges.<\/p>\n

(1) The risk of policy has surged sharply: The United States frequently adjusts the tariff list, such as the 301 Tariff and changes to the Harmonized Tariff Schedule (HTS Code), along with export controls and entity list sanctions, resulting in increased compliance requirements for transactions. Certificates of origin and non-compliant logistics routes can lead to high penalties, making companies feel as if they are in a minefield, where a slight misstep could result in significant losses.<\/p>\n

(2) The fluctuation of tax costs is significant: The increase in tariffs directly compresses the profit margins of enterprises. Traditional ERP cannot do real-time accounting of the overall tax burden, and the preferential policies of free trade agreements (such as the Regional Comprehensive Economic Partnership RCEP) are often not fully utilized. The efficiency of the Tax Refund Declaration is low, further exacerbating the cash flow pressure on businesses.<\/p>\n

(3) Uncertainty of orders and the market: The trade war has prompted a significant adjustment in global purchasing strategies, with outside Chinese Mainland orders being volatile and demand changing frequently. Relying on manual statistics and traditional sales management methods, it is difficult for enterprises to respond to the changing market environment in an on-time and accurate manner.<\/p>\n

02<\/b><\/p>\n

The Way to Break the Deadlock: Embrace digitalization and compliance upgrade.<\/b><\/p>\n

Under the pressure of the trade war, if Chinese foreign trade enterprises want to “break the deadlock and thrive,” they must focus on digital transformation, achieving full-process compliance and traceable management by integrating core stages such as business, finance, and tax; leveraging a global perspective and tools to bring efficient collaboration and risk management capabilities to the enterprises.<\/p>\n

Kingdee Cloud Foreign Trade Management System is specifically designed for international trade enterprises, covering various business models such as general trade management and bulk trade management. It supports all scenarioses including self-operated import and export, agency import and export, imported material processing, and transshipment trade. Through a one-stop integrated platform for business, finance, and taxation, we help enterprises steadily move forward, reduce risks, and enhance efficiency in the ever-changing international trade environment.<\/p>\n

<\/p>\n

(1) Integrated Management of Business, Finance, and Taxation:\u00a0Integrate business, financial, and tax processes within the same platform to ensure consistent data flow across all <x1> stages<\/x1>, meet the requirements for full process traceability and accurate accounting in financial audits, and achieve the unification and efficiency of business, financial, and tax <x2> data<\/x2>.<\/p>\n

(2) Full Process Online Closed-loop Management:\u00a0Through the digital platform, the logistics, document flow, cash flow, and information flow are interconnected, allowing real-time monitoring of business progress. All flows can be tracked, queried, analyzed, and predicted, enhancing management efficiency and reducing information delays and errors.<\/p>\n

(3) Full Process Risk Control: Systematic risk management runs throughout the business, reducing human intervention; strictly control key nodes from the three dimensions of before, during, and after. In the current environment of frequent changes in international trade Policy, being able to identify Risk and provide early warnings in a timely manner helps enterprises operate in compliance.<\/p>\n

(4) Export Tax Refund Management: Provide accurate tax refund accounting and processing, supported by open interfaces to connect with third-party tax refund declaration systems, significantly reducing the workload for tax refund declarations, improving approval efficiency, and alleviating cash flow pressure for enterprises.<\/p>\n

(5) Meet the customs AEO <Authenticate>: China has signed AEO mutual recognition agreements with 31 economies, covering 57 countries (regions). With the high standards of compliance management and data sharing provided by Kingdee, enterprises can more easily obtain AEO (Authorized Economic Operator) certification, significantly reducing inspection rates, saving clearance time and costs, and laying the foundation for further expansion into <x1> overseas markets <x2>.<\/p>\n

(6) Global international support: Aimed at the import and export policies of multiple countries such as Malaysia, Thailand, and Singapore, meeting the compliance requirements of different countries, providing multi-organization transaction support for enterprises in global supply chain management, and steadily expanding the overseas footprint.<\/p>\n

<\/p>\n

03<\/b><\/p>\n

Looking to the future: Forge digital resilience, navigate through cycles.<\/b><\/p>\n

As the war chariots of the “Old Empire” spin aimlessly in the quagmire of inflation, the engine of the new world roars in the resonance of policy innovation and industrial revolution. Historical experience tells us that the greater the upheaval, the more enterprises need to actively seek change and embrace digital transformation. The essence of a trade war is a battle of <x1>Efficiency<\/x1>, a battle of <x2>Rule<\/x2>, and a battle of technology.<\/p>\n

Kingdee, with its intelligent EBC at the core, achieves a fully online closed-loop management process, ensuring that business data is standardized and visible, promoting the integration of business and finance, implementing multi-dimensional data decision-making, and helping foreign trade enterprises build a “resilient” foundation.<\/p>\n

In this century-long transformation, perhaps the true winners are not the largest companies, but those “new species” that are the first to complete the compliance digital gene reconstruction. When policy risk becomes the new normal, pre-delivery construction of an intelligent protection system will be the key to determining the survival of enterprises.<\/p>\n","protected":false},"excerpt":{"rendered":"

On April 10, 2025, the U.S. government announced an increase in the tax rate for “reciprocal tariffs” on products imported from China to 125%, and China’s countermeasures also continued to upgrade. This trade friction, known as the “most severe tariff strangulation in history,” feels like a sudden superstorm, catching many foreign trade enterprises off guard. […]<\/p>\n","protected":false},"author":27,"featured_media":3029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[15],"tags":[],"by_industry":[],"by_product":[25],"by_topic":[],"class_list":["post-2244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","by_product-taxation"],"yoast_head":"\n