Why are state-owned supply chain companies prone to falling into financing trade? Serialization of State owned Enterprise Supply Chain Report (II)

China is currently facing the dilemma of shrinking demand and weakening expectations, and state-owned enterprises must take the lead in stabilizing the economy and expectations. However, currently state-owned supply chain companies also face many challenges in their business operations, such as a lack of business, personnel, and risk control experience.

In order to address the above issues, initiated by the Internet of China, entrepreneurs and experts with practical experience within the ecosystem, and focusing on the implementation of the "digitalization+supply chain+finance" model by local state-owned enterprises, the "High Quality Development Report of Local State owned Enterprise Supply Chain Companies -" digitalization+supply chain+finance "Promoting Local Industrial Ecological Development" (hereinafter referred to as the "State owned Enterprise Supply Chain Report") was released in July 2023.

On August 8, the official account of the World Wide Web (ID: wanlinkcn) released: Why do state-owned enterprises set up supply chain companies? [State owned Enterprise Supply Chain Report Serialization] (1) Today, Wanlian brings you [State owned Enterprise Supply Chain Report Serialization] (2) Why are state-owned enterprise supply chain companies prone to financing trade? Thank you for your attention.

The following is the serialized text:

3、 How to find business safely, compliant, quickly, and continuously is a major challenge for state-owned supply chain companies

On the basis of ensuring the authenticity of trade, it is in line with commercial laws and market principles for supply chain companies to increase their revenue by participating in trade. Like all trading companies, it is reasonable to hope to improve financial performance, support ratings, and capital performance through this. However, by using false trade or buying traffic to inflate business revenue, one does not apply their high-quality resources to real and valuable trade. It is still a huge resource mismatch, which does not benefit the national economy at all. There is no benefit to state-owned enterprises themselves: false trade itself is illegal and non compliant; The form of buying traffic as a channel also faces huge fraud risks. Even if the counterparty is a state-owned enterprise or a listed company, it is very likely to be scammed by the bureau. In recent years, there have been many fraudulent incidents of fake state-owned enterprises, and there have been many lightning incidents of listed companies. But why are many state-owned supply chain companies taking risks? Not because there is no risk awareness at all, but because one does not know how to obtain real, continuous, safe, and compliant operating income, specifically:

1. Due to insufficient personnel and experience in the operation team, imperfect innovation mechanisms, and fierce competition in the homogenized Red Sea, state-owned supply chain companies do not know how to make customers buy into them, and their financial resources are not easily utilized as imagined. Especially in the current unfavorable economic situation, enterprises no longer need funds. If customers don't buy it, they will have no business, and if they don't have business, they will have to complete the assessment. They will either take risks, buy traffic, or even engage in false trade; Alternatively, while valuing the authenticity of the trade background, they are lured into the scam by unscrupulous elements (financing trade scams). The advantageous resources in the end (credit and funds) either cannot flow, do not create value, waste resources, or idle, attracting huge potential risks.

2. When faced with insufficient teams and limited innovation capabilities, state-owned supply chain companies need to seek external cooperation, with cooperative enterprises providing operational teams and technical support for joint operations or direct joint ventures. However, both cooperation modes may result in accumulation of cooperative enterprises due to the issue of profit sharing mechanism

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The article is sourced from the Internet of Things

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