Chinese exporters adopt flexible strategies amid global pandemic
Updated 18:14, 31-Mar-2020
By Wu Lei and Li Jian
03:19

Chinese exporters have been forced to find new ways to remain competitive, as many of their overseas clients have to delay or even cancel their orders due to the ongoing COVID-19 pandemic. 

March and April used to be a busy season for garment manufacturers and exporters from Shaoxing City in eastern China's Zhejiang Province. But business has been adversely affected by COVID-19 in more countries and regions.

Hu Zulin, general manager of Zhejiang Xinyuelang Garments Co., Ltd., told CGTN that in February overseas clients asked when his company could resume production and shipments. But since last week, many of them have wanted to delay or even cancel orders.

Hu has been making and exporting garments for over 12 years. He said the situation was even worse than the 2008 financial crisis.

Products displayed at Huanglong Embroidery, Shaoxin City, Zhejiang Province, China. / CGTN

Products displayed at Huanglong Embroidery, Shaoxin City, Zhejiang Province, China. / CGTN

Huang Rengeng, general manager of Huanglong Embroidery, said he hopes there can be more tax and rental reductions to relieve some operational pressure.

Official data showed that exports had fallen by 17.2 percent in January and February compared to the same period a year earlier.

Many Chinese exporters say it is hard to predict when the overseas market will recover. But in the meantime, they are adjusting their product manufacturing and market strategies.

Many companies have not only reduced their production, they've also conducted training and explored more domestic and other emerging markets.

Sunny Luo, general manager of Shaoxing Sunme Home Furnishings Co., Ltd., told CGTN that the sales team has undergone more training, and attempts have been made to develop into new markets. 

Zhu Yingying, general manager of Shaoxing Country Future Textile Co., Ltd., said the company used to develop new styles, but now must lower costs. It will also expand its domestic market.

Hu Zulin's company tries to discover new growth areas by producing face masks to survive this market. /CGTN

Hu Zulin's company tries to discover new growth areas by producing face masks to survive this market. /CGTN

Hu has chosen to purchase machines to produce face masks which are in huge demand around the world. 

Besides exploring domestic markets, he said he wants to turn face mask manufacturing into a new part of his business, which can help stabilize his company's operations. 

Many Chinese exporters are likely to suffer if the pandemic cannot be effectively contained. 

A Chinese proverb says there's an opportunity in every crisis. And for these exporters, the opportunity lies in their quick reaction and their ability to meet market demand.

(Cover image: Exporters in Shaoxing City, Zhejiang Province say a lot of their overseas clients have delayed or cancelled their orders. /CGTN)