After China's cancellation of the export tax rebate policy for aluminum products, how should foreign aluminum enterprises respond?

Short-term response strategies

(1).Adjust procurement strategy

Given the significant position of Chinese aluminum products in the global market, the policy adjustment may lead to price fluctuations of aluminum. Foreign enterprises can closely monitor market trends in the short term, adjust the procurement time and quantity according to price changes, and look for appropriate procurement opportunities to reduce costs.

(2).Strengthen supply chain management: 

Seek more reliable Chinese suppliers and establish closer cooperative relationships, expand supply channels to ensure the stable supply of raw materials. 

Long-term response strategies

(1).Technological innovation and upgrading

 Increase R&D investment, promote technological innovation, improve production efficiency and product quality, and reduce production costs. For example, adopt more advanced production processes, equipment and automation technologies to enhance the core competitiveness of enterprises and better cope with market changes and cost increase pressures.

(2).Product diversification and high value-added

Focus on product structure adjustment, develop high value-added and high-performance aluminum products to meet the demand for high-end aluminum products in the market. By increasing product value-added, enhance the competitiveness and profitability of products in the international market. 

(3).Enhance market competitiveness: Strengthen brand building and marketing, enhance brand awareness and reputation, and establish a good corporate image. Actively participate in international exhibitions, industry seminars and other activities to showcase the enterprise's technological strength and product advantages and expand international market share.

(4) Sustainable development and green production: Pay attention to environmental protection and sustainable development, adopt clean energy and environmentally friendly production technologies, reduce carbon emissions and energy consumption, in line with the global green development trend. This not only helps to improve the corporate social image but also may obtain relevant policy support and market recognition.

(5) Strengthen cost control and management: Comprehensively review the cost structure of the enterprise, strengthen cost control and refined management from all aspects such as production, management and sales. Through measures such as optimizing production processes, reducing raw material procurement costs and improving production efficiency, reduce the operating costs of enterprises and improve economic efficiency.

Pay attention to policy dynamics and market trends: Closely monitor policy changes and market trends in China and around the world, and adjust the enterprise's development strategy and business strategy in a timely manner. At the same time, strengthen market research and analysis, understand the changing trends of customer needs, and make preparations in advance to seize market opportunities.