Since the beginning of this year, problems such as supply chain disorder, sharp fluctuations in exchange rates, and shrinking demand caused by the conflict between Russia and Ukraine, global inflation, and US interest rate hikes and shrinking balance sheets have had a certain impact on mechanical and electrical foreign trade enterprises in terms of demand, supply and logistics. Encountered resistance in developing international markets.
However, even in the face of multiple pressures, the export value of China’s mechanical and electrical products in the first three quarters still increased by 10% year-on-year, showing strong resilience. The achievement of this good result is inseparable from the hard work of the electromechanical foreign trade people, intensifying research and development efforts, expanding sales channels, and actively doing electromechanical enterprises to get rid of the predicament. At the same time, in order to help electromechanical foreign trade enterprises relieve their worries, the China Chamber of Commerce for Import and Export of Electromechanical Products has held a number of online docking activities, which have achieved remarkable results.
Exports face many difficulties
At present, the export of mechanical and electrical enterprises is facing multiple difficulties. On the one hand, foreign exchange controls in some countries have made it difficult for companies to ship goods and collect payments. Recently, companies such as Midea, Aucma and Gree generally reported that countries such as Pakistan, Argentina, Algeria and Egypt have tightened foreign exchange controls, resulting in the difficulty of shipping a large number of orders, delays in payment collection, and stagnation of sales. According to Zhou Nan, deputy director of the Industry Development Department of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products: “In February this year, Egypt implemented a new regulation of stopping wire transfer payments and changing all payments by letter of credit in full. Except for the necessary materials stipulated by the Egyptian government, other The issuance of letters of credit for goods has almost stagnated, making it impossible for Chinese companies to deliver goods after they have produced orders, and Egyptian customers unable to place new orders, making it difficult for mechanical and electrical products to be exported to Egypt.”
On the other hand, the depreciation of the euro has affected China’s export business to the euro area market. The depreciation of the euro and high inflation have severely hit the consumer confidence and demand in this part of the market. The consumer confidence index in major economies such as Germany and France has dropped sharply. Residents tend to put more budget on necessities such as energy and food. Demand for durable consumer goods such as electronic information products declined. Some enterprises in the electromechanical industry reported that European customers are cautious in placing orders, and the number of new orders has dropped significantly.
In addition, the epidemic has led to the obstruction of international personnel exchanges, which has brought difficulties to the development of foreign contracted projects. “At present, the vast majority of new projects of engineering contracting companies are negotiated online, which has an impact on maintaining customers, acquiring projects, especially new market development, especially projects that require domestic engineers to go to the local area to guide equipment installation and commissioning. It is greatly affected.” Dong Ming, director of the Strategy and Engineering Department of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, said.
Actively respond to stable orders
Facing multiple difficulties, mechanical and electrical enterprises have taken active measures to develop new products, expand new markets, and stabilize export growth from multiple perspectives and channels.
In order to ensure the number of orders, many mechanical and electrical enterprises insist on independent research and development, manufacturing and operation, build their own brands and develop independent channels. Wenzhou Longhua Daily Electronics Co., Ltd. is one of them. During the epidemic, the company has increased its research and development of new products, actively promoted industrial upgrading, and enhanced its own anti-risk capabilities. Since the conflict between Russia and Ukraine, the purchases of Laizhou Hongyuan Vise Manufacturing Co., Ltd. in the European and American markets have dropped sharply. In response, the company adjusted its strategy in a timely manner, shifted the target of market development to low-end markets such as Africa and Southeast Asia, and developed a series of high-end products. Cost-effective products have achieved steady growth in export orders.
In order to expand sales channels, the company actively explores both domestic and international markets. Fujian Fuan Minnan Yanan Motor Co., Ltd. combines nearly 30 years of experience in overseas sales channels, customer resources and green energy system integration to deploy new energy products such as energy storage and fuel cells, integrate the traditional motor industry with the new energy industry, and make full use of domestic Market advantages, actively tap the potential of the domestic market, and target new infrastructure fields such as 5G telecom base stations and data centers, and have achieved remarkable results.
Online docking to expand the market
Since the beginning of this year, in order to help electromechanical foreign trade enterprises to solve urgent problems in a timely manner, and to assist local commercial authorities to accurately assist foreign trade enterprises in their bailouts, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products has held a number of online matchmaking activities to build a platform for business cooperation between Chinese and foreign enterprises.
According to Yang Tong, Deputy Secretary-General of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and Director of the Exhibition Center, the Chamber of Commerce uses the long-established foreign cooperation institutions and the electromechanical cloud exhibition platform to cooperate with the Department of Commerce of Jiangsu Province, the Department of Commerce of Guangdong Province, the Department of Commerce of Hubei Province, and the Guangxi Provincial Department of Commerce. Zhuang Autonomous Region Department of Commerce, Chongqing Municipal Commission of Commerce, Cixi Municipal Bureau of Commerce, Yueqing Municipal Bureau of Commerce and other local commercial authorities have held 29 online trade fairs and 4,352 “one-to-one” precise matchmaking meetings, a total of 915 Mechanical and electrical enterprises have precisely matched 1,095 international buyers. It has played a positive role in stabilizing the market, grabbing orders, activating the overseas cooperation resources of the chamber of commerce, demonstrating the export-oriented strength of the chamber of commerce, meeting the needs of online activities of provincial and municipal commercial authorities, and accurately serving member companies.