The National Bureau of Statistics data show that in the first 10 months of 2020, China’s total exports of goods 14,329.6 billion yuan, an increase of 2.4%; at the same time, the trade structure continues to optimize. In the first 10 months, exports of mechanical and electrical products grew by 3.8% year-on-year, accounting for 59% of exports.
This year, under the impact of the new crown pneumonia epidemic, in the global trade in goods has declined, how has China’s foreign trade achieved steady growth? Chinese enterprises how to deal with the new challenges of the international situation?
LED industry continues to rebound in the first three quarters of exports rose 5.45% year-on-year
Exports soared 520%, foreign trade enterprise profits soared 10 times, the export of these products “unusually hot”, explosive growth in demand!
In the workshop of an LED enterprise in Shenzhen, the reporter saw workers busy and feverish, the machine to achieve full production. According to the person in charge of the enterprise, business has been bad in the first half of this year, the orders received last year because of the epidemic was delayed again and again, the second quarter is basically sporadic start, but from July and August, the orders began to more up.
Shenzhen Sacred Heart Technology Group Chairman Chen Fuquan: There was some crisis at the beginning of the year, but our new product development came out, new products from scratch, from zero to start growing at a high rate, so we have grown by more than 50% from January to October this year.
Exports soared 520%, foreign trade enterprise profits soared 10 times, the export of these products “unusually hot”, explosive growth in demand!
Industry insiders told reporters that the industry rebounded orders increased because the domestic control of the epidemic is relatively fast, many overseas orders are flowing to the domestic, coupled with the domestic backlog of orders have entered the late stage of implementation, LED exports have seen a significant increase.
Ltd. Secretary of the Board of Directors Li Guanqun: In recent years, most of the industry capacity to Southeast Asia, overseas, but in the domestic epidemic control better than overseas, many orders to domestic manufacturers. For example, the manufacturing bases in Jiangxi Ji’an and Xinyu have been operating at full capacity since August.
Exports soared 520%, foreign trade enterprise profits soared 10 times, the export of these products “unusually hot”, explosive growth in demand!
According to the China Lighting Association released the “first three quarters of 2020 China’s lighting industry exports report”, in September 2020, China’s lighting industry exports of $5.113 billion, an increase of 44.18% year-on-year, recording the largest year-on-year increase in a single month, since June has been four consecutive months to achieve double-digit growth. Among them, LED lighting products exports amounted to 3.4 billion U.S. dollars, up 40.5% year-on-year, LED lighting products from January to September this year, the cumulative export value of 23.46 billion U.S. dollars, an increase of 5.45%.
Industry sources told reporters that the first three quarters of related scientific research, medical lamps, UV lamps and other epidemic prevention-related lighting products, in the context of the global epidemic triggered huge demand ushered in an explosive growth, according to statistics, the first three quarters of related products exports have reached 386 million U.S. dollars, a year-on-year growth of 520%.
For the first time in 20 years, GE is so busy thanks to China’s strong supply chain system
General Electric Company, or GE for short, is a super industrial giant with a global reputation. The imaging manufacturing base in Yizhuang, Beijing, is the first joint venture founded by GE in China and the largest medical imaging equipment manufacturing base in the world, supplying more than 100 countries and regions around the world. 70% of the CT equipment shipped to the world comes from here.
Exports soared 520%, foreign trade enterprise profits soared 10 times, the export of these products “unusually hot”, explosive growth in demand!
With the global spread of the epidemic this year, factory orders have surged, and employees have received production tasks from New Year’s Eve until now, almost without rest, and production is exceptionally busy, with a large number of medical equipment being sent from here to the front line of the global fight against the epidemic every day.
Exports soared by 520%, foreign trade enterprise profits soared 10 times, these products export “abnormal hot”, demand explosive growth!
Feng Tao told reporters that the reason why the base can digest this amount of orders is attributed to the local intelligent transformation of the factory over the years, because GE’s global only fully intelligent continuous flow production line is here, every 60 minutes will be out of a device.
GE Healthcare’s Beijing base has a global supply chain, with more than 150 domestic suppliers in China, and the localization rate of components for mainstream products has reached 85%, fully demonstrating the resilience of China’s supply chain system in dealing with the challenges of the epidemic.
Although the global trade situation and geopolitical situation are becoming increasingly complex and severe under the influence of the epidemic, which indeed brings many unstable factors for the business development of multinational enterprises, China is still an important part of GE’s global supply chain and innovation base.
Exports soared 520%, foreign trade enterprise profits soared 10 times, these products exports “unusually hot”, explosive growth in demand!
Small home appliance cluster to force cross-border e-commerce, finally independent control of pricing power
Cixi is one of China’s three small home appliance industry clusters, thousands of enterprises, nearly 10,000 supporting business gathered here. After the outbreak, China has become one of the few countries in the world that can provide reliable production capacity, and “receiving orders is a real picture of local enterprises at the moment.
Zhang Yu is the head of a local company. In order to cope with the surge of orders, Zhang Yu has just invested 500,000 yuan to add a new production line, and now five production lines are in full swing to produce 10,000 sandwich machines per day, all of which are exported to Russia. The surge in orders is undoubtedly a good thing for any manufacturing enterprise, but it has left Zhang Yu at a loss.
Exports soared 520%, foreign trade enterprise profits soared 10 times, these products export “abnormal hot”, demand explosive growth!
Zhang Yu told reporters that the profit of production is only 3%, affected by the epidemic, raw materials and international logistics prices rise, only the exchange rate changes in profit loss reached 7%. Now it is a loss of money, the production of a loss of a piece.
At present, some of the small home appliance manufacturing enterprises in Cixi product technology content and enterprise brand value is not high, production is still stuck in the labeling stage. This not only makes these enterprises need to look at “other people’s faces” to live, in the market also lacks the “right to speak” and independent pricing power.
Exports soared 520%, foreign trade enterprise profits soared 10 times, the export of these products “unusually hot”, the demand for explosive growth!
Cixi City, Zhejiang Province, e-commerce Association President Yu Xuehui took over his father’s business for 20 years, watched profits fall from 15% all the way to 3% today. He began to test the B2C model of cross-border e-commerce in 2014, “enterprises directly facing consumers”, through the sale of their own brands at sea, profits from the previous 3%-5%, to more than 30% today. Not only has it accumulated users, but it has also fought for valuable independent pricing power.
Another factory producing washing machines, affected by the epidemic at the beginning of the year, overseas orders fell severely, and the company was facing unprecedented pressure to survive. A life-and-death struggle to do up cross-border e-commerce allows them to sell tens of thousands of units a year, sales can reach $3 million, with independent pricing power.
“Two legs to walk”, B2B and B2C at the same time, become the choice of more enterprises to go to sea today. The first three quarters of this year, Cixi foreign trade in home appliances enterprises to achieve output value of 40.996 billion yuan, an increase of 9.45%.
Exports soared 520%, foreign trade enterprise profits soared 10 times, the export of these products “unusually hot”, the demand for explosive growth!
Huangyan mold town in Taizhou City, Zhejiang Province, known as China’s “mold town”. The town gathered hundreds of small and large mold enterprises, Asia’s largest plastic extrusion die, automotive molds, micro-foam large molds, all kinds of molds to serve the global car companies.
The main customers of Saihao Industry are the head enterprises in the global auto light industry, and their products enter the global famous car companies such as Mercedes-Benz, BMW and Volkswagen through supporting. In previous years, the company’s overseas market accounted for about 50%, this year, affected by the epidemic, it was thought that overseas orders would plummet, but I did not expect that orders from Southeast Asia would increase instead of decrease, with a year-on-year increase of more than 20%.