A digital system that can help foreign trade enterprises predict investment risks is launched at the opening ceremony of the China (Indonesia) Trade Fair on March 24. [Photo/zjol.com.cn]

A digital system that can help foreign trade enterprises predict investment risks was launched at the opening ceremony of the China (Indonesia) Trade Fair on March 24, local media outlets reported.

According to an official from the Hangzhou commerce bureau, the system has two parts: lighting and decoding. The lighting part is meant to digitally evaluate the risk degree of Hangzhou's foreign trade based on the two major indicators of market development and risk response. The red light indicates high risk, the yellow light indicates medium risk, and the green light indicates smooth operation. Decoding is to make the corresponding interpretation of the light and remind foreign trade enterprises to guard against risks.

It is easy to access the system by visiting the official WeChat account of the Hangzhou commerce bureau and clicking the "Foreign Trade Enterprise Risk Predict System" button at the bottom.

"For our foreign trade enterprises, the biggest risk is payment collection. You see, this red light reminds me to pay attention to the risks of foreign exchange collection and performance in trade with Russia and Ukraine," said the director of the Zhejiang Wanma Tianyi Communication Wire and Cable Co.

"The company will adjust the collection policy in a timely manner, for example, when signing a contract, the advance payment will be increased to 30 to 50 percent, and before delivery, the other party should pay off the balance first to minimize risk," the director added.

Statistics show that Hangzhou is currently home to a total of 14,497 foreign trade enterprises. The city's imports and exports were valued at 689.94 billion yuan ($108.46 billion) last year, a year-on-year increase of 24.5 percent.

The interface of the digital system.[Photo/zjol.com.cn]