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Sichuan Increases 3,000 Foreign Trade Companies From January to July

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  Driving by activities of Sichuan Enterprises Going Globally, from January to July, there are about 3,000 Sichuan companies gaining foreign trade rights, including 2,770 companies in the first half year with a year-on-year growth of 71.2%, higher than the total number in 2014. By the end of June, there are over 21,000 companies applying for foreign trade rights while the number is 20,000 in 2015.

  Sichuan Enterprises Going Globally increases in both quantity and quality. Relevant responsible official from Sichuan Provincial Department of Commerce indicated that the establishment of platforms not only expands the horizons of enterprises, but also upgrades their development ideas and product competitiveness, and accelerates the steps of Sichuan enterprises to expand marketing.

  Part A  How to promote more Sichuan enterprises going globally?

  Government provides subsidies for small and medium-sized enterprises to attend exhibitions and open European markets.

  Small and medium-sized foreign trade enterprises suffer a lot from weak external demands.

  Liu Qinghua, manager of Foreign Trade Department of Sichuan Yinhe Chemical Company, said that since receiving orders at The China Import and Export Fair in 2002, their foreign trade volume has amounted to about 3 million US dollars every year, “but the foreign markets are shrinking remarkably.”Yinhe Chemical Company hoped to attend foreign exhibitions to enlarge source clients. It took about 30,000 yuan to attend a professional European exhibition and rent a booth. The individual cost amounted to 80,000 yuan when including traveling cost and visiting clients. This was a heavy burden for a company. “Economy is experiencing downward and companies should be more cautious.” In 2014, Sichuan Provincial People's Government organized 3 major activities including Sichuan Enterprises Going Globally, and provided a certain subsidy for booths and traveling.

  Last year, Yinhe Chemical Company attended delicate chemical exhibition in Germany and met a lot of potential clients. As the following work in the next year, Yinhe Chemical Company received 8 buyers and new orders amounted to about 100,000 US dollars. “We open the gate of European market gate since then.” Liu Qinghua said that the testing standards for delicate chemical products were much more strict than in China. For instance, a kind of vitamin K3 product, there was no specific requirement for chromium in China. Yinhe Chemical conducted detection for microelements and timely upgraded producing technologies. This new product is sold about 400,000 US dollars in Europe. Company should adjust technology based on demands and then improve their International competitiveness.” Zhou Mingxia, Director of Commercial Program Department of Sichuan Provincial Association for International Business Development Promotion, said that companies had an increasing desire to attend the activity. Taking the delicate chemical exhibition in Europe as example, booths of Sichuan had enlarged from 30 square meters to over 200 square meters and the number of attending company increased from less than 10 to about 30.

  There is also an increasing consciousness for companies to going globally.” Sichuan Provincial Department of Commerce has accumulated that in the first half year of 2016, Sichuan Enterprise Going Globally has driven 2,300 companies to attend exhibition, a year-on-year growth of 36.2%.

  Orders come along closely. In the first half year, the total intended amount of Sichuan Enterprises Going Globally has amounted to 960 million US dollars with the cooperation agreements of 105.

  It will take a while for the market to recognize our products. “Usually we contract our potential clients this year and work out in the following year.” Zhou Mingxia said she hoped that there were continuous policies for Sichuan Enterprises Going Globally to benefit more small and medium-sized enterprises.

  Part B  How to introduce overseas resources?

  Revelation of the story of leading figs from Germany

  Weiyuan Jinsifang Fruit Co., Limited has the largest fig plating base in China. You Yong, General Manager, sought for help for over a dozens of colleges and universities, but failed to find the comprehensive development methods for figs. Currently, there are only preliminary processing stage with low added value.

  Changes occurred in last May. You Yong attended international food exhibition in Milan and met a leading food enterprise combining research, developing, and manufacturing. They were attracted by our fig quality. After the exhibition, the president of the company led a team to inspect in Neijiang and offered a cooperation scheme of offering formula, technology, and equipment and joint investment on deep processing.

  Jinsifang will buy German equipment and machinery while Germany company is responsible for offering equipment for mortgage. They will divide their product sales. Jinsifang will expand foreign markets through introducing technologies and equipment and upgrading products. “The equipment has been brought in Sichuan.” You Yong revealed that the new producing line will be operated in September. The dried fig fruits are sold at 27,000 yuan per ton while the dietary fiber products should be increased to over 100,000 yuan per ton. A businessman from Singapore has reserved 5 million yuan of this product.

  The interaction of going globally and introducing into has brought broad business opportunities. In the beginning of 2016, Sichuan has organized enterprises to attend Italy International Shoe Exhibition. In early March, Italy Trento Provincial People's Government led 30 enterprises to pay a back visit and negotiate with 60 enterprises. After attending Nepal International Fair, Nepal Prime Minister visited Sichuan and negotiated with about 100 companies in Sichuan and contracted with Nepal Commercial Chamber to lay foundation for expand South Asian market.

  Part C   How to lead companies to achieve further development?

  Commercial chambers establish platforms and hold more professional activities

  Sichuan International Chamber of Machinery has organized about 180 enterprises to attend foreign exhibitions including Asia, Europe, America, and achieve intended contracts of 200 million yuan. Zhai Guangyi, Deputy Director, said frankly that due to different languages and marketing habits, in the beginning, they were quite lost but now they are familiar with the whole process.

  In late July, the chamber also organized 17 member companies to attend exhibition in South America. Apart from Brazil and Chile, they also negotiated with dozens of South American companies. Now, the chamber has yielded a certain reputation. There are about 200 member companies in it, increasing about one third than that in 2014. Membership dues, valued-added services, government purchasing services are three major sources of income.

  Seeking for win-win situation and stimulating market vigor

  The activities are more professional. The numbers of commercial chambers has increased from 20 in 2014 to 40, covering automobile parts, furniture, chemical, lady shoes, chemical machinery and so on, in line with the foreign product structure. Relevant responsible officials from Trade Development Office of Sichuan Provincial Department of Commerce indicated that based on professional resources of commercial chambers, they could lead companies to find targeted buyers quickly and improve the efficiency of going globally.

  The target is being more accurate. In the first half year, Sichuan has held 18 activities for countries along “One Belt and One Road”, concerning lady shoes, agricultural machines, agricultural products, oil development, infrastructure projects and complete sets of equipment export and so on.

  It is easier to going globally in group. Professional buyers from Europe often purchase multiple products in industrial chains. Last year, 30 Sichuan chemical enterprises attended delicate chemical exhibition. There was a buyer for medical products as well as circuit. Yinhe Chemical Company also assisted several Sichuan enterprises to have opportunities to contact the potential buyer.

 
 
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