Recently, we are all concerned about the situation of the epidemic, and may ignore some changes in domestic and foreign economy and policies. China is still struggling to fight the epidemic and help enterprises prepare for resumption of work and production. Many Indian customers have told me that India has expanded the range of imported tariff products.
In fact, it's nothing new for the Indian government to increase import tariffs, because as early as 2018, the Indian government has increased tariffs on 17 kinds of goods imported from China, including some electronic products, communication equipment, etc. For example, the tariff on smart watches and telecommunication equipment has been increased from 10% to 20%. This time, the tariff adjustment only increased the range of products collected on this basis.
The government adjusts the import tariff to crack down on imports, and the import cost of Indian customers will increase significantly. In this case, customers all hope that suppliers can make profit concessions to reduce the import cost, which is why Indian customers have been mentioning to us that they hope to reduce the price recently. But as a supplier, especially some low profit manufacturing enterprises, there is no room to make profit concessions for customers when the epidemic seriously affects production. But since the customer asked us this question, we can't ignore it. The more difficult the moment is, the more we need to understand each other before we can reach a long-term friendly and cooperative relationship. So it is very important to do well in the key period.
First of all, we can explain the impact of the domestic epidemic on the resumption of work and production to our customers, including the shortage of labor force caused by the epidemic in the near future, the increase of production cost and the impact on the delivery date, so that our customers can understand the current situation and difficulties in China. Then we can analyze with our customers that this tariff rise is aimed at different industries, not one customer, but also the whole market. If you feel difficult, others will also feel difficult. So in this case, we should suggest that customers focus on adjusting their marketing strategies to cope with the changes in the market and seize the favorable opportunity as soon as possible, rather than the increase of cost.
In addition, under the control of the market economy, in view of the economic impact of the epidemic, the Chinese government is likely to adjust the price of raw materials in the near future, especially in the case of relative shortage of raw materials under the influence of the Sino US trade war, the price of raw materials will be a major problem facing suppliers. Therefore, sales can let customers know the recent domestic raw material prices and the rising manufacturing costs through the transmission of these information, and promote customers to implement orders as soon as possible to strive for the best price.
The year 2020 has started in a special way, which is bound not to be an ordinary year. However, it is the extraordinary that generations of extraordinary people have been created. We believe that our great motherland, the Communist Party of China and the government can not only overcome this epidemic, but also lead us to quickly restore economic order. As foreign trade sales, we also have a responsibility and obligation to help restore exports, let's work together, and believe tomorrow will be better.