He has now built a 24-hour service team, and his sales team has been to trade shows in Europe and Asia, where members tried to acquire more orders.
Exacerbated by a bumpy economic recovery, weakness in external markets and geopolitical complicationsLiu, like many other Chinese exporters, has refused to remain passive. Instead, it is adapting to changes in global supply chains by diversifying production lines across borders.
“If customers don’t place orders in China, then we go where they do,” Liu said.
“The momentum remains lukewarm”: 4 takeaways from China’s trade data in August
After opening a warehouse in Los Angeles earlier this year, Liu plans to source shirts from Southeast Asian factories, complete the design and printing in the U.S. and sell them there through e-commerce platforms that are also trying to expand there invest and localize.
Thanks to them US marketLiu achieved 60 percent of his sales target in the first three quarters of this year.
“Our annual export sales reached over 100 million yuan (US$13.69 million) last year, and we estimate that we will double export orders this year, with the US market growing and contributing 25 percent,” Liu said.
China’s exports fell 8.8 percent in August from a year earlier, down from a 14.5 percent plunge in July. U.S. shipments fell for the 13th straight month, after falling 9.53 percent in August, although they improved slightly from double-digit declines in the previous three months.
Despite a slight recovery in economic activity in August Issue The long-term impact of China’s slowdown has continued to haunt the global market.
What slowing demand from China and the West means for the rest of Asia
Beijing is trying to stabilize foreign trade and investment, while economists said heavy reliance on the external market was never the recipe for China to become an economic power.
“From a strategic perspective, it is necessary to reduce dependence on external demand,” said Liu Yuanchun, president of Shanghai University of Finance and Economics.
He downplayed concerns Foreign trade declining contribution to the Chinese economy, pointing to the market potential of the world’s second largest economy and the efforts of entrepreneurs to adopt the changes.
Peng Biao, a supply chain specialist in Shanghai, also saw signs of improvement at a textile equipment trade fair in Shanghai last week.
“There were more foreign faces, mostly from Southeast Asia and the Middle East. Some were trained and recruited by Chinese companies to explore foreign markets,” Peng said. “One participant noted a rebound in orders in July and August compared to the previous two months, when only 30 percent of capacity was utilized.
“And we have been discussing and proactively exploring how we can expand research and use AI and big data to win new contracts.”
Exporters travel to trade fairs like this one in Shanghai to drum up business and travel abroad. Photo: Xinhua
Economists have called on Chinese companies to take bold steps in the global market.
“We have seen that some industries and companies are migrating [of China], but they are not a kite with broken strings; Rather, they are closely linked to the domestic industrial ecosystem,” Zhuo Xian, senior fellow at the State Council Development Research Center, said at an economic forum last week.
Musk Lu, founder of Dongguan-based Kanou Group, has turned to a strategy to become more international after seeing orders in his company’s precision machining division fall nearly 40 percent year-on-year.
The group has mainly produced precision mechanical parts and high-end touch screen glass for foreign customers in the automotive, semiconductor, medical and industrial CNC industries for decades.
“Once it is lost, it will be lost forever. I’m absolutely sure with this. “We need to keep up with the changes in the supply chain and take the path of internationalization,” he said.
He decided to look for new opportunities electric vehicles and medical robotics, established an office in Singapore and built a factory in Vietnam to get closer to its customers.
“Our investment strategy is actually quite simple. “We plan ahead and build a stronghold where our customers are likely to migrate and invest, allowing us to respond to customers and win new orders more quickly than with the previous business model focused on China,” he said. “Our next step should be India and we have recently hired a Japanese colleague who will be responsible for developing the Indian market next year.”
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US-China relations depend on strong economic ties, the US trade chief said in talks in Beijing
US-China relations depend on strong economic ties, the US trade chief said in talks in Beijing
On the other hand, he has no plans to expand domestic production capacity in the next decade. Instead, he wants to concentrate on further foreign branches.
“Our goal is to become a local brand or company in every market we operate in to further internationalize Kanou Group,” Lu said.
Exporters have also called for easier access to visas to facilitate their travel abroad.
“Now it is difficult to get a business visa. In Southeast Asia it takes 15 days to apply, in Singapore and Australia it takes three months, in the UK it takes three to five months, in Europe it takes six months and in the US, Canada and India it is even more difficult,” said Leo Tan, a Shenzhen resident Export dealer.
Meanwhile, some still face the daunting task of stabilizing export orders as overseas seeks to reduce dependence on the Chinese market.
“Some foreign buyers have to meet a new KPI, which is to gradually reduce the purchase of Chinese-made products by a certain percentage, so our chances of returning to previous levels are lower,” Tan said.
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