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Yangtze businesses getting creative

Updated: 2013-11-19 07:49
By Yu Ran in Shanghai ( China Daily)

In recent weeks, surveys and studies all seem to be pointing to an economic upswing. Even the international investment banks that have been talking down China are changing their tune.

Yangtze businesses getting creative

The official statistics from the 114th China Import and Export Fair (Canton Fair) showed that total export turnover at the fair totaled about 194.6 billion yuan ($31.9 billion), a drop of 10.9 percent from the spring fair in April and 3 percent lower than the same period last year. Provided to China Daily

Of course, many concerns have not disappeared. But business confidence has shown signs of picking up. That is particularly obvious among the thousands of private-sector entrepreneurs in the Yangtze River Delta region that produce a wide range of consumer goods for export around the world.

They are the force expected to play a key role in spearheading China's restructuring from a low-cost production base to a high-value-added manufacturing hub. But they aren't of much use when wallowing in despair and self-pity, as they have been doing over the past several months.

Now, some say they are seeing a ray of hope.

"I feel much better than I did a year ago," said Li Zijian, owner of Zhejiang Ruolai Trading Co Ltd in Jinhua, Zhejiang province. He and other area factory owners said that although overseas orders are still sluggish, more buyers are coming to talk business. What's more, they said they've benefited from having more working capital by running down inventories.

"We haven't been so lean and mean for a long time," Li said.

Today, manufacturers, such as Li, will produce only as much as they can sell. Credit remains tight, Li said. But "we are in a better position than before to manage that," he added.

More important, many manufacturers learned a hard lesson in the recent business downturn and credit squeeze. Realizing that the old business model doesn't work in an environment of rising labor and land costs, some manufacturers are investing in upgrades to their operations and exploring new markets.

The official statistics from the 114th China Import and Export Fair (Canton Fair) showed that total export turnover at the fair totaled about 194.6 billion yuan ($31.9 billion), a drop of 10.9 percent from the spring fair in April and 3 percent lower than the same period last year. Among signed orders, 48.9 percent were short-term ones of fewer than three months, while only 16.2 percent were long-term orders of more than six months.

Overseas demand hasn't come back strongly, while more enterprises are racing to upgrade and restructure their companies to obtain advantages and attract clients from abroad, Liu Jianjun, spokesperson for the fair and the deputy general of China Foreign Trade Center said at the fair's closing ceremony.

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