Made for Trade: Dongguan trade fair helps factories explore global markets
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Now for a panoramic view of how 'made in China' drives the value chain. Dong Guan has become a key manufacturing hub along with the country's rising exports. That's come as factories in the South China city have learned to develop their own brands and marketing networks. Our reporter Ming Tian visited a manufacturing trade fair and filed this story.
Chinese manufacturers have risen to fame as the world's factory. A case in point is Dongguan in South China. It's jokingly said that a traffic jam in the city creates a global supply shortage. Ten percent of the world's sneakers, 20 percent of its smart phones, and 30 percent of all toys are made in this Pearl River Delta city. Toy producers at a manufacturing trade fair say their workloads remain the same despite uncertainties caused by the ongoing U.S.-China trade tensions.
WU SAI INTEX TOYS & PLASTIC ELECTRONICS "At the moment, our factory's production here is as stable as usual. We have not felt the impacts. Our orders depend on the clients' demand and our marketing teams in Hong Kong handle the orders."
The sentiment is similar in the luggage sector. But companies say their future isn't crystal clear.
WU JINGSONG, GENERAL MANAGER GUANGZHOU MONSCA LUGGAGE & BAG DEV'T "Take the recent trade disputes between the US and China for instance. It has lethal impacts on many businesses. For us, the hit is not that big so far because we have retained our clients. But nobody knows what happens next."
Dongguan is a city that has thrived on manufacturing. Foreign investors from more than 40 countries have set up companies here, bringing a world-class reputation to the traditional agriculture region.
MING TIAN DONGGUAN "Many say Dongguan is the epitome of made in China, and you have an idea of what it means at this manufacturing trade fair. From toys, watches, shoes, and cell phones, laptops, and machinery. All is available along with the upheaval of the country's export sectors. While most of the factories here used to produce and sell abroad. Now they have turned to domestic markets, creating their own brands and sales networks."
Shoemakers say a shift of the business model began in 2008.
WANG JINXIANG, GENERAL MANAGER DONGGUAN CHUANGYUAN SHOES "I started to produce the orders for foreign trade in 1999. The situation was pretty good then. Since 2008 when the global financial crisis hit, my orders decreased by half. I said to myself that I need to transition to domestic sales, and register my own brand."
This is the 10th edition of this manufacturing trade fair since it first began in 2009. Organizers said that they began the trade fair to help producers explore domestic markets as global demand declined. However, foreign markets still matter. More than five thousand foreign buyers are on hand at this year's fair.
WU JUN, SECRETARY GENERAL CHINA PROCESSING TRADE PRODUCTS FAIR "We aim to build the trade fair as an integrated platform for both domestic and international markets. We want our producers to use resources from both markets. In the future, we will keep our efforts to innovate and upgrade the trade fair."
Chinese leaders renewed the country's pledge to open up the market wider and deeper, and local governments are looking for fresh measures to connect the home and the world. Ming Tian, CGTN, in Dong Guan.