General

The latest report released by the US Department of Labor shows that after excluding volatile food and energy prices, the US core consumer price index (CPI) has risen 0.6% month on month for two consecutive months. In September, the core CPI rose 6.6% year-on-year, reaching the highest level since 1982. At the same time, producer price index (PPI), another key indicator of inflation, is also rising. From August to September, the US PPI rose 0.4%, exceeding the 0.2% increase estimated by economists.

On the other side of the Atlantic Ocean, the latest data released by the Eurostat showed that the final value of the euro zone's September harmonized CPI was 0.1 percentage points lower than the initial value of 10%, which was 9.9%. Although it did not stand in double digits, it was still the highest value ever recorded; It rose 1.2% month on month, the largest increase since March 2022.

The continued high inflation in the European and American markets has led central banks to continue to implement monetary tightening policies to cope with inflation, which has weakened the European and American economies and demand, and led to a serious decline in purchasing managers' index (PMI), industrial output and other economic production indicators.

European and American market demand continues to be weak, giving Chinese international trade enterprises whose target markets are located here an examination question. However, many international trade enterprises with both soft and hard strength never flinch and hand in beautiful answers again and again.

Every difficulty is repeated

The challenges in the European and American markets are escalating, and some Chinese international trade enterprises have a clear sense of touch. Sichuan Foreign Trade Machinery Import and Export Co., Ltd. is one of them.

The company is a major import and export enterprise in the domestic industrial measurement tool industry, and its products are supplied to the European and American markets. In 2021, the company's export volume will reach 81 million US dollars, with an actual growth of more than 30%. This year, as of the end of June, the company's apparent shipment data and collection data were basically the same as last year, but the actual order amount was 28% lower than the same period last year, and customers significantly delayed the delivery time (even after the first half of next year).

Ouyang Kai, the chairman of the company, analyzed that there were three reasons for this situation:

First, European and American customers are in the "de stocking" stage this year. In the past two years, they have placed a large number of orders in advance. With the gradual recovery of production in India, Vietnam and South America, customers have significantly reduced their orders to China this year; Secondly, the conflict between Russia and Ukraine has led to the basic stoppage of the Eastern European market. At present, the price of means of production in Western Europe, including fuel, has risen by more than 40%, which has had a significant negative impact on consumer confidence. Italian and Dutch customers have held online meetings with the company on this issue, and subsequently cancelled or postponed orders substantially; Third, trade protectionism in the United States has risen. The company directly communicated with Grainger, a top 500 enterprise in the United States, a mainstream industrial supplier, MSC, and Homedepot, a software company, and its management made it clear that the products that can be replaced in India, Vietnam, and Thailand should be "de localized" as far as possible, which would impact the company's exports of stainless steel, castings, and copper processing products.

It's hard to close it. Close it

A thousand grinds and ten thousand blows are still strong. You can feel the wind from east to west, north to south. In the unprecedented change in the world in a century, Chinese international trade enterprises have bravely and intelligently passed through many difficulties and completed the magnificent upgrade of carp leaping over Longmen.

Ouyang Kai said that in the face of the complexity of the European and American markets mentioned above, the company has taken three major measures - to promote online products and seize the online communication opportunities of large-scale exhibitions such as the Canton Fair; Give full play to the company's overseas network visits and service advantages for market promotion; Do a good job in promoting the business of emerging markets, especially the "the Belt and Road" initiative partners.

Through the above measures, the company has reached an implementation and intention contract of nearly 18 million dollars in September, laying a good foundation for the work in the fourth quarter and early next year.

The European and American markets are the traditional key markets of Zhejiang Native Produce and Animal Husbandry Import and Export Group Co., Ltd., accounting for more than 70% of its exports, with an annual export volume of more than 400 million dollars. This year, the company participated in two Canton Fair, and the intended turnover signed by the company was basically flat, stable at about 1.93 million US dollars. Zhang Bin, Chairman of the Board of Directors, said that in the future, the company will still focus on the three major sectors of textile and clothing, light industrial products, and agricultural and livestock products, and expand the European and American consumer groups with seven major products, including clothing, bags, casings, textiles, paint brushes, shoes, bee products, and further develop the emerging markets of international trade in the Middle East, Africa, South America, etc. on the basis of stabilizing the existing European and American markets.

Speaking of experience, Zhang Bin said that for a long time, Zhejiang local livestock insisted on the development of "trade to industry and trade, and then to integration of science, industry and trade" to promote the upgrading of traditional foreign trade industry. Establish upstream production bases at home and abroad by cultivating competitive products; Through the joint venture with downstream European and American customers, a close community of destiny has been formed, ensuring the continuous stability of customer orders. At the same time, Zhejiang Native Produce and Animal Husbandry gives full play to the advantages of state-owned enterprises in terms of funds and channels, implements full supply chain management, cultivates customer echelons, actively participates in exhibitions, stabilizes customers and expands markets, and ensures the basic stability of European and American markets.