How can inland cities play well in global trade? Puyang gives the answer

When people talk about international trade, their eyes often focus on coastal port cities. But did you know? Puyang, located in northern Henan, is quietly becoming the "invisible trade hub" in the Central Plains region with its unique entrepot trade model. Mr. Zhang, who has been stationed in Puyang, revealed: "Last year, the chemical equipment transferred by our company had its final destination in Southeast Asia, but it never left the bonded warehouse in Puyang throughout the process." What kind of business logic lies behind this?

Puyang's entrepot trade is not accidental. As an important national petrochemical base, it has the triple advantages of "industrial foundation + logistics network + policy dividends":

• Industrial Reservoir: The chemical industry chain formed by enterprises such as Zhongyuan Oilfield provides a stable source of goods for entrepot trade
• Logistics Acceleration: Deshang Expressway and Jin-Yu-Lu Railway meet here, and it takes only 6 hours to reach Qingdao Port
• Policy Catalyst: The Bonded Logistics Center gives the privilege of "inside the territory but outside the customs", and goods can be transferred with "zero tariffs"

The typical case operated by Ms. Li is quite representative: The rubber raw materials ordered by European customers are shipped from Southeast Asia, undergo quality inspection and sorting in Puyang Bonded Zone, and are re-grouped with the steel cord produced locally, and finally sent to Germany. This model saves 12% of the cost compared with direct transportation. "Puyang acts as the Lego connector of the international supply chain," Ms. Li put it this way.

Although it has obvious advantages, Puyang's entrepot trade still faces tests:

• Lack of professional talents: There is a shortage of operation teams proficient in multi-national trade rules
• Financial support needs to be improved: The cross-border settlement and credit guarantee system still need to be upgraded
• Shortcomings in digitalization: Most enterprises still use Excel to track global orders

When the wave of "buying globally and selling globally" sweeps across the interior, Puyang's practice proves that geographical location is no longer the only determining factor in trade. For small and medium-sized enterprise owners, it may be time to re-examine this city by the Yellow River - it may become a new fulcrum for your international business. Where do you think the next breakout point of entrepot trade will be? You are welcome to share your observations.