On the evening of August 2, the Speaker of the U.S. House of Representatives Pelosi confirmed his visit to Taiwan. After 25 years, there will be another American political heavyweight coming to Taiwan. While the whole Taiwan is full of joy, more than 1,400 food companies in Taiwan have been notified one following another— – Goods are suspended from export by China.
“About 7pm, the agent called us to inform us that there was a problem. I quickly checked the factory registration number on the Internet, and found that it changed from “valid” to “suspended import”… To be honest, I still don’t know what happened. “The food businessman, who has been exporting to China for more than 10 years, said that he and two other foundries manufactured the same product for a European brand for export to China. This time, two were banned, but the other was able to ship. not the rules.”
A familiar scene began in March 2020. After the political atmosphere on both sides of the strait gradually became tense, the import was banned before the pineapple harvest season, followed by sakya, lotus mist, grouper, etc., and the proportion of export sales to China exceeded the overall sales volume “Nine. The agricultural products that have become “completed” have been banned from entering the Chinese market one following another on the grounds that harmful organisms have been detected.
After experiencing the ban without warning, many farmers were shocked to realize that the political dividend was fading. “No one cared regarding what medicine you spray before. If the relationship between the two sides is good, it doesn’t matter what happens.” A pineapple farmer surnamed Chen, who used to specialize in China’s export business, admitted that turning to Operating the Japanese and Hong Kong markets only allowed him to check the medicine and fertilization from the beginning, and learn postharvest treatment.
The truth regarding China’s ban on my food? In addition to Pelosi, there are unpaid “nuclear food declarations”
Perhaps, some agricultural products were banned in the past, and it was indeed the unstable quality that made Chinese teachers famous. But why did even processed food suffer this time? Industry practitioners said privately that many people did not take administrative procedures seriously.
The businessman explained that in April this year, the official website of the General Administration of Customs of China issued an announcement requiring businesses selling food to the country to fill out a “nuclear food declaration” to ensure that the product is not contaminated by nuclear waste.
“It’s actually an administrative procedure, but it’s so small that many people don’t notice it.” After discussing with his peers, the operator found that those who did not submit a written statement at the time would be banned if they didn’t submit supplementary documents, and no supplementary documents have been announced so far software mechanism.
However, compared to the time when the export of agricultural products was banned, the farmers jumped in a hurry, but this time, the food industry seems to be there.
There are three reasons:
First, food is a domestic sales industry: in the inventory of major food manufacturers that have been hindered in export sales, the proportion of business in China is relatively low. For example, well-known companies such as Taishan, Fushou, and Guaijiao all account for less than 5% of their export business in China. Listed companies such as Weiquan and Uni-President have already set up factories in China and are not subject to the import ban, and the scope of influence is small.
Second, it is the peak season of the food industry: every year, Zhongyuan Purdue is a major event in the food industry, and its performance accounts for regarding 30% of the whole year, which even drives the stocks up. At this moment, domestic performance is booming, and the export business, which accounts for a low proportion, is hindered and has less impact.
Third, the food has a long shelf life: the food has been processed and has a long shelf life. Unlike fresh agricultural products, which cannot wait, it must be delivered to the consumer’s table as soon as possible.
The banned agricultural production continues to increase, and the company cannot save it!Improving the quality of export is the right way
However, the fact that the food industry is not affected does not mean that Taiwanese people can sit back and relax. In the early morning of August 3, the Chinese government announced a ban on the import of citrus fruits, white hairfish and horse mackerel, which immediately made farmers nervous. Hold a press conference.
The main reason is that right now is the lemon production season in Taiwan, and 100% of the export sales are sent to China; starting in August, it is the production season of Wendan pomelo, and 68% of the export sales also depend on the Chinese market. White hairtail is also 100% exported to China.
Chen Jizhong said frankly that if the above-mentioned agricultural products are all suspended, it is estimated that it will cause a loss of 800 million yuan. He will issue agricultural travel coupons to promote domestic consumption, and seek enterprises to assist in processing and digestion.
However, it is not the right way to seek help from the industry every time you face a crisis. One businessman said in private, “Every time the Agricultural Committee sends a task to go to the site for an inspection, the medication often exceeds the standard, and the management is simply not good… To put it bluntly, it is an acquisition at a loss.”
After taking stock of several crises in succession, there are certainly political factors that interfere, but it cannot be denied that the quality of some products is not in place, and the application is not accurate.
The Chinese market with a population of 1.4 billion is very attractive, but several consecutive experiences have shown that if you want to do business with China, don’t count on political dividends. At this moment when the relationship between the two sides of the Taiwan Strait is no longer sweet, the business operators in the Chinese market must follow the standards of other markets, follow the rules, and reduce the risks that they can control, so as to ensure long-term stability.
(Author: You Yutang; This article is published by “Business weekly“Reprinted with permission; source of the first picture:Flickr/nnice CC BY 2.0）