Machinery / Industrial Parts & Tools

Since this year, problems such as supply chain disorder, sharp exchange rate fluctuation, and shrinking demand caused by the conflict between Russia and Ukraine, global inflation, and the US interest rate hike and contraction have had a certain impact on electromechanical foreign trade enterprises in terms of demand, supply, and logistics, and enterprises have encountered obstacles in opening up international trade markets.

However, even in the face of multiple pressures, the export volume of China's international mechanical and electrical products in the first three quarters increased by 10% year on year, showing strong resilience. This good result can not be achieved without the hard work of electromechanical foreign trade personnel. In order to get rid of the difficulties, electromechanical enterprises have made positive efforts to increase research and development efforts and expand sales channels. At the same time, in order to help the electromechanical foreign trade enterprises solve their problems, the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products held several online docking activities, with remarkable results.

Export faces many difficulties

At present, electromechanical enterprises face multiple difficulties in international trade export. On the one hand, some countries' foreign exchange control has caused difficulties for enterprises in shipping and collecting money. Recently, Midea, Aucma, Gree and other enterprises have generally reported that Pakistan, Argentina, Algeria, Egypt and other countries have tightened their foreign exchange control, resulting in a large number of orders difficult to ship, delayed payment collection, and stagnant sales. According to Zhou Nan, deputy director of the Industry Development Department of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, "In February this year, Egypt implemented the new rule of stopping telegraphic transfer payments and changing all payments to full letter of credit. Except for the necessary materials stipulated by the Egyptian government, the issuance of letters of credit for other commodities has almost stopped, making it impossible for Chinese enterprises to ship after production according to orders, and Egyptian customers cannot place new orders, which has caused difficulties for the export of mechanical and electrical products to Egypt."

On the other hand, the devaluation of the euro has affected China's export business to the euro area market. The devaluation of the euro and the high inflation have seriously hit the consumer confidence and demand in this part of the market. The consumer confidence index of major economies such as Germany and France has dropped significantly. Residents tend to spend more on energy, food and other necessities, and the demand for durable consumer goods such as household appliances and electronic information products has decreased. Some enterprises in the mechanical and electrical industry reflect that European customers are cautious in placing orders, and the number of new orders has decreased significantly.

In addition, the epidemic situation has led to the obstruction of international personnel exchanges, which has brought difficulties to foreign contracting projects. "At present, the vast majority of new projects of engineering contracting enterprises are negotiated online, which has an impact on customer maintenance, project acquisition, especially new market development, especially projects requiring domestic engineers to guide equipment installation and commissioning locally." Dong Ming, Director of Strategy and Engineering Department of China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, said.

Actively respond to stable orders

In the face of multiple difficulties, mechanical and electrical enterprises took an active part in developing new products, expanding new markets, and stabilizing export growth from multiple angles and channels.

In order to guarantee the order quantity, many electromechanical enterprises adhere to independent research and development, manufacturing and operation, build their own brands and develop their own channels. Wenzhou Longhua Household Electronics Co., Ltd. is one of them. During the epidemic, the enterprise increased its efforts in new product research and development, actively promoted industrial upgrading, and enhanced its own anti risk ability. Since the conflict between Russia and Ukraine, Laizhou Hongyuan Bench vice Manufacturing Co., Ltd. has experienced a sharp decline in the purchase volume in the European and American markets. In this regard, the company adjusted its strategy in a timely manner, shifted its goal of market expansion to middle and low-end markets in Africa and Southeast Asia, developed a series of products with high cost performance ratio, and achieved a steady growth in international trade export orders.

In order to expand sales channels, the enterprise actively develops domestic and international markets. Fujian Fu'an Minnannan Electric Machinery Co., Ltd., based on nearly 30 years of experience in overseas sales channels, customer resources and green energy system integration, has laid out new energy products such as energy storage and fuel cells, integrated the traditional motor industry with the new energy industry, made full use of the advantages of the domestic market, actively tapped the potential of the domestic market, targeted at new infrastructure fields such as 5G telecom base stations and data centers, and achieved remarkable results.

Online docking and market expansion

Since this year, in order to help mechanical and electrical international trade enterprises solve their urgent problems in a timely manner, and to assist local competent commercial departments in accurately helping foreign trade enterprises to rescue, the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products has held a number of online docking 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 Mechanical and Electrical Products and Director of the Exhibition Center, the Chamber of Commerce for Mechanical and Electrical Products, using the long-term foreign cooperation institutions and the electromechanical cloud exhibition platform, held 29 online trade fairs in conjunction with local commercial authorities such as Jiangsu Provincial Department of Commerce, Guangdong Provincial Department of Commerce, Hubei Provincial Department of Commerce, Guangxi Zhuang Autonomous Region Department of Commerce, Chongqing Municipal Commission of Commerce, Cixi Municipal Bureau of Commerce and Yueqing Municipal Bureau of Commerce, As well as 4352 "one-to-one" precise docking meetings, a total of 915 electromechanical enterprises were precisely matched with 1095 international purchasers. 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 online activity needs of provincial and municipal competent commercial departments, and accurately serving member enterprises.