Foreign trips, participation in events seen expanding market channels

Chinese export-oriented enterprises, which have been critical to the country's economic growth for long, will increase their participation in international business exhibitions and expand market channels in emerging markets to drive growth this year, said business owners and market watchers on Tuesday.

As the COVID-19 pandemic has affected global trade and softened demand for goods in many economies, China's export-oriented companies made sure to display their products at business events such as the 2023 Consumer Electronics Show in the United States, and the 72nd edition of the Nuremberg International Toy Fair in Germany. Such efforts led to more business orders for the Chinese exhibitors.

Riding the government's supportive policies and financial assistance, many of China's exporters have already made plans to take part in more trade shows abroad this year. Such moves, they believe, will be effective in retaining existing clients and growing a network of global contacts.

By participating in the MIDO Eyewear Show 2023, an annual international event of the optics, optometry, ophthalmology and eyewear industry, in Milan in early February, over 400 exhibitors from 170 companies in Wenzhou, Zhejiang province, a hub of China's eyewear industry, secured $300 million worth of intended orders, according to the Wenzhou Bureau of Commerce.

The show, held from Feb 4 to 6, is the largest international event dedicated to the global eyewear industry, with more than 1,500 exhibitors from over 50 countries and regions presenting their latest products in six pavilions and eight exhibition areas. Wenzhou companies' booths took up more than 8,000 square meters.

After spending 300,000 yuan ($44,010) on decoration and stall fees, Pan Aimei, general manager of Wenzhou Tangfeng Songrain Industrial Co Ltd, together with three employees, sealed $600,000 worth of business orders at its booth in Milan. The eyewear manufacturer plans to travel to Brazil, Singapore, France and other countries to participate in various optical exhibitions later this year to land more orders.

"Geopolitical tensions have pushed many European clients to adopt a cautious attitude toward placing orders. They now place a small number of orders. So, we've altered our market strategy. We've also booked booths at optical shows in Rio de Janeiro and Singapore to expand our market presence in nontraditional markets like some economies in South America and Southeast Asia," Pan said.

She also said the company may receive another $200,000 worth of intended deals as it had sent samples and is further discussing product details with its foreign customers after the expo in Italy. Many international clients also plan to make business trips to China after the country optimized its COVID-19 response late last year.

Against external headwinds like softer overseas demand, China has introduced a number of policy measures to help companies, especially micro, small and medium-sized enterprises and individual businesses, to promote investment, consumption and foreign trade, according to the Ministry of Commerce.

For instance, the Wenzhou government has started to offer subsidies to local companies to take part in overseas business exhibitions this year. It has set goals to assist more than 300 exporters to participate in more than 50 exhibitions abroad in the first quarter.

Chen Jun, president of Wuxi Flavia Machinery Co Ltd, a Jiangsu province-based manufacturer of industrial equipment and accessories, said he has been on business trips to Vietnam, the United Kingdom and Russia since September. Wuxi Flavia will participate in an industrial expo in Thailand in June and expand sales in emerging markets like Mexico and Pakistan this year.

"It is vital for trade firms to have face-to-face interactions with foreign clients, particularly for firms whose business is clothing, foodstuffs and industrial parts. Not all export deals can be sealed via cross-border e-commerce channels," said Xie Weihong, dean of the School of Economics at the Guangdong University of Technology.