Transnational Trade Risks of Chinese Small and Medium-Sized Enterprises and Solutions After the Covid-19

Abstract

Within the context of economic globalization, Chinese enterprises affected by the COVID-19 face a number of difficulties in cross-border trade. Small and medium-sized enterprises (SMEs) play a substantial role in china's economy. These enterprises account for more than 60% of the total GDP, around 50% of the tax revenue generated, create over 79% of employment opportunities, and contribute to approximately 68% of the whole export volume. With the onset of the epidemic, the viability and progress of China's small and medium-sized firms face a significant risk, so causing a further threat to the overall economic advancement of China. Based on previous studies on Chinese SMEs' foreign trade, this paper narrows the time frame of the study to the period between the epidemic and the post-epidemic period, analyses in detail the cross-border trade risks faced by Chinese SMEs from the perspectives of supply and demand, business operations, product price competitiveness and innovation level, and provides relevant measures to address these risks, such as strengthening cooperation among allied countries, enhancing the government's supportive role, utilizing financial instruments to hedge trade risks, and enhancing the innovation capacity of enterprises. By analyzing the foreign trade risks faced by Chinese SMEs in the post epidemic context, SMEs can make more improvements in production, operation, management and innovation. Therefore, these small and medium-sized enterprises can create more value and achieve sustainable development.