China doesn't completely refrain from developing entrepot trade. It's just that compared with some other economies that mainly rely on entrepot trade, its scale proportion is not so prominent. There are mainly several reasons for this. Firstly, China itself has a huge manufacturing system and is the world's largest goods trading country. It mainly focuses on developing its own manufacturing industry and direct foreign trade, promoting "Made in China" to the world. Secondly, entrepot trade depends on special geographical locations, trade policies and other conditions. For example, Singapore and Hong Kong, China, have superior geographical locations and flexible policies, making them more suitable to be entrepot trade hubs. Although China has advantages along the coast, its overall strategic positioning is different due to its vast territory. Thirdly, from the perspectives of tax and supervision, the supervision of entrepot trade is complex. China needs to ensure trade compliance and tax stability, and large-scale development of entrepot trade will increase the difficulty of management. Considering these factors comprehensively, China has not regarded entrepot trade as the main trade mode.
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
China doesn't completely refrain from developing entrepot trade. It's just that compared with some other economies that mainly rely on entrepot trade, its scale proportion is not so prominent. There are mainly several reasons for this. Firstly, China itself has a huge manufacturing system and is the world's largest goods trading country. It mainly focuses on developing its own manufacturing industry and direct foreign trade, promoting "Made in China" to the world. Secondly, entrepot trade depends on special geographical locations, trade policies and other conditions. For example, Singapore and Hong Kong, China, have superior geographical locations and flexible policies, making them more suitable to be entrepot trade hubs. Although China has advantages along the coast, its overall strategic positioning is different due to its vast territory. Thirdly, from the perspectives of tax and supervision, the supervision of entrepot trade is complex. China needs to ensure trade compliance and tax stability, and large-scale development of entrepot trade will increase the difficulty of management. Considering these factors comprehensively, China has not regarded entrepot trade as the main trade mode.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
China has a complete industrial structure and can efficiently complete the production from raw materials to finished products. There is no need to rely too much on entrepot trade. Direct trade can better control product quality and trade links, safeguarding the interests of enterprises.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Entrepot trade is mostly developed in small economies or specific regions. Because their economic scales are small and their manufacturing foundations are weak, entrepot trade can drive the economy. China has a large economic scale, and the role of entrepot trade in driving the overall economy is limited.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Entrepot trade is of relatively high risks, such as the risks during the transportation of goods and the risks of changes in trade policies. To stabilize the economy, China is more inclined to develop direct trade with controllable risks.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
China pays attention to trade balance and sustainable development. Large-scale entrepot trade may disrupt this balance and may also trigger trade frictions, which is not conducive to the stability of the long-term trade environment.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
The development of entrepot trade requires the support of efficient logistics and financial systems. Although China's logistics and financial development is good, its focus is on serving the huge domestic manufacturing industry and direct trade, and entrepot trade has not become a priority.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The profit margin of entrepot trade is affected by many factors and is unstable. Chinese manufacturing industries can obtain more stable profits through technological innovation and industrial upgrading, so the attraction of entrepot trade is small.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
China is actively promoting the "Belt and Road Initiative", increasing direct trade cooperation with countries along the line, promoting industrial cooperation and common economic development, which is of more far-reaching significance than entrepot trade.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
China has a huge domestic market, and enterprises also have broad space to sell their products domestically. The demand for the entrepot trade model that relies on the transfer of external markets is not so strong.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
From the perspective of resource allocation, large-scale development of entrepot trade requires the occupation of a large amount of resources. China gives priority to investing resources in key areas such as manufacturing upgrading and technological innovation to enhance its comprehensive competitiveness.