Foreign Trade Enterprises Encounter New Market Competition

The huge potential of emerging markets attracts Chinese trading enterprises, and also attracts enterprises in developed countries. Meanwhile, domestic enterprises in emerging markets are also growing.

In emerging markets, Chinese enterprises will face competition with enterprises from other countries, and some phenomena have "sounded the alarm" for Chinese trading enterprises.

To get better returns in emerging markets, Chinese enterprises need to prepare early.

Trade frictions are intensifying.

According to incomplete statistics, as of May 20th, Latin American countries had launched anti-dumping investigations on China's export products, adopted temporary minimum price, and imposed anti-dumping duties and other trade remedy measures in 2010, involving 21 products. Among them, Argentina ranked first in 10 place, 7 in Brazil, and 1 in Mexico and Columbia.

Another important emerging market - India's trade frictions with China is also escalating.

Since 2010, China's steel, pharmaceuticals and chemical products have been subjected to anti-dumping investigations by India, involving glass fiber, penicillin G potassium and 6- amino penicillanic acid and other products.

Professor Yuan Qigang, vice president of China World Trade Center College of Shandong Economic University and professor of economics, said that the emerging market trade remedy measures for China increased, on the one hand, there were problems of Chinese export enterprises, but the deeper reason was the formation of industrial competition.

He said that as more and more Chinese enterprises attach importance to emerging markets, competition in this area is also intensifying, and low price strategies are more likely to emerge.

The development of the domestic economy of the emerging market has led to the progress of the related industries. Unconsciously, it has been "impacted" by Chinese products. This has led some emerging markets to pay attention to the impact of Chinese products on their own industries.

In this regard, Yuan Qigang suggested that Chinese enterprises must raise the grade of export products and avoid low price competition on the one hand; on the other hand, we can consider the local investment to set up factories and promote trade development through investment.

European and American enterprises join the war

In emerging markets, Chinese enterprises are encountering not only the threat of trade friction, but also greater rivals.

Since the financial crisis, the potential of emerging markets in Europe and America has been more and more important.

Yuan Qigang admitted that the emerging market is a must for us to release the rhetoric of "doubling exports within 5 years".

"Consumer goods in China's main exports of manufactured goods. Under the five year export doubling plan of the United States, the scramble for emerging markets will be upgraded in structure, including the intensification of competition in existing products.

On the other hand, in low carbon and other products technology, Chinese enterprises may face competition in emerging market and European and American enterprises for market share.

In his view, the growth rate of China's trade in emerging markets is not only the law of things development, but also the beginning of more intense competition.