Machinery / Industrial Parts & Tools

Last year, problems such as supply chain disorder, sharp fluctuations in exchange rates, and shrinking demand caused by the Russian-Uzbekistan conflict, global inflation, and the United States interest rate increase and contraction have had a certain impact on electromechanical foreign trade enterprises on the demand, supply and logistics sides, and enterprises have encountered resistance in opening up the international trade market.

However, even in the face of multiple pressures, the export volume of China's mechanical and electrical products in international trade increased by 10% year on year in the first three quarters, showing strong resilience. This good achievement can not be achieved without the hard work of electromechanical foreign traders, increasing research and development efforts, and expanding sales channels. In order to get rid of the difficulties, electromechanical enterprises actively act. At the same time, in order to help mechanical and electrical foreign trade enterprises relieve their worries and difficulties, the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products held many 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 to ship and collect money. Recently, Midea, Aucma, Gree and other enterprises generally reported that Pakistan, Argentina, Algeria, Egypt and other countries tightened their foreign exchange controls, resulting in a large number of orders difficult to ship, delayed payment collection and sales stagnation. 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 a new rule of stopping telegraphic transfer payment and changing it into full payment by letter of credit. In addition to the necessary materials stipulated by the Egyptian government, the issuance of letters of credit for other commodities almost stopped, making it impossible for Chinese enterprises to ship after production according to the order, and Egyptian customers could not place new orders, which caused difficulties for the export of mechanical and electrical products 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 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 put more budget on necessities such as energy and food, 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 reported that European customers are cautious in placing orders at present, and the number of new orders has declined significantly.

In addition, the epidemic has hindered international personnel exchanges and brought difficulties to the business of foreign contracted projects. "At present, the vast majority of new projects of engineering contracting enterprises are negotiated online, which has an impact on maintaining customers, acquiring projects, especially new market development, especially those requiring domestic engineers to guide the local installation and commissioning of equipment," said Dong Ming, director of the Strategy and Engineering Department of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products.

Actively respond to stable orders

In the face of multiple difficulties, mechanical and electrical enterprises have actively acted 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 electromechanical enterprises adhere to independent research and development, manufacturing and operation, build independent brands and develop independent channels. Wenzhou Longhua Daily 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 strengthened its own anti-risk capability. Since the Russian-Uzbekistan conflict, Laizhou Hongyuan Pliers Manufacturing Co., Ltd. has seen a sharp decline in its purchase volume in the European and American markets. In response, the company has adjusted its strategy in time, shifted its goal of market development to low-end markets such as Africa and Southeast Asia, developed a series of cost-effective products, and achieved a stable 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 overseas sales channels, customer resources and green energy system integration experience, has arranged new energy products such as energy storage and fuel cells, integrated the traditional electric machinery industry with the new energy industry, made full use of the advantages of the domestic market, actively explored the potential of the domestic market, and targeted new infrastructure areas such as 5G telecom base stations and data centers, with remarkable results.

Online docking and market expansion

Since this year, the China Chamber of Commerce for the Import and Export of Mechanical and Electrical Products has held several online matchmaking activities to help the electromechanical international trade enterprises solve the urgent problems, and assist the local commercial authorities to accurately assist the foreign trade enterprises in the rescue, 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 has held 29 online trade fairs with local commercial authorities such as the Jiangsu Provincial Department of Commerce, the Guangdong Provincial Department of Commerce, the Hubei Provincial Department of Commerce, the Guangxi Zhuang Autonomous Region Department of Commerce, the Chongqing Municipal Commission of Commerce, the Cixi Municipal Bureau of Commerce and the Yueqing Municipal Bureau of Commerce, And 4352 "one-to-one" precision matchmaking meetings, with a total of 915 electromechanical enterprises accurately matching 1095 international buyers. It has played a positive role in stabilizing the market, grabbing orders, activating the overseas cooperation resources of the Chamber of Commerce, displaying the export-oriented strength of the Chamber of Commerce, docking the demand of online activities of provincial and municipal commercial authorities, and accurately serving member enterprises.