The latest report from the Labor Department showed that the core consumer price index (CPI), which strips out volatile food and energy prices, has risen 0.6% month-over-month for two consecutive months. In September, the core CPI rose 6.6% from a year earlier, the highest level since 1982. Meanwhile, another key measure of inflation, the producer price index, is also moving higher. The PPI rose 0.4% from August to September, beating economists' estimates of a 0.2% rise.

On the other side of the Atlantic, the latest data from Eurostat showed the euro zone's final September CPI revised down 0.1 percentage point from a preliminary 10% reading to 9.9%, not in double digits but still the highest on record. On a monthly basis, they rose 1.2%, the most since March 2022.

The persistently high inflation in the European and American markets has led central banks to continue to implement monetary tightening policies to deal with inflation, which in turn has weakened the European and American economies and demand. Economic production indicators such as purchasing managers' indexes (PMI) and industrial output have fallen sharply.

European and American market demand continues to be weak, for the target market positioning in China's foreign trade enterprises out of the test. However, many foreign trade enterprises with both hard and soft power have never flinched and handed in beautiful results again and again.

Difficulties repeat themselves

The challenges in the European and American markets are escalating, and some Chinese foreign trade enterprises have been visibly touched. Sichuan Foreign Trade Machinery Import and Export Co., LTD is one of them.

The company is a major import and export enterprise in the domestic industrial measuring tools industry, and its products are supplied to the European and American markets. In 2021, the company's exports reached $81 million, an actual growth of more than 30%. This year, by the end of June, the company's surface shipping data and foreign exchange data were basically the same as last year, but the actual order amount was 28% lower than the same period last year, and customers significantly delayed the delivery time (even after the first half of next year).

Ouyang Kai, chairman of the company, analyzed that there are roughly three reasons for this situation:

First, this year, the European and American customers are in the "destocking" stage. In the past two years, they have placed a large number of orders in advance. With the gradual recovery of production in India, Vietnam and South America, customers have sharply reduced their orders to China this year. Second, the conflict between Russia and Ukraine led to the basic shutdown of the market in Eastern Europe, and the price increase of the means of production, including fuel, has exceeded 40% in Western Europe, which has had a great negative impact on consumer confidence. Italian and Dutch customers have held online meetings with the company on this issue, and subsequently cancelled or postponed their orders substantially. Third, the rise of trade protectionism in the United States. The company has direct communication with American Fortune 500 enterprises, mainstream industrial supplier Grainger, software company MSC, and Homedepot. Its management clearly stated that the products that can be substituted in India, Vietnam and Thailand should be "de-sinicized" as much as possible. Thus, the company's stainless steel, casting and copper processing products export impact.

Close is hard to pass

Thousands of mill hit also strong, Ren Erdong southwest north wind. In the great changes unseen in the world in a century, China's foreign trade enterprises have passed through the difficulties before wisdom and courage, and completed the magnificent upgrade of carp leaping Longmen again and again.

Ouyang Kai said that in the face of the above complicated situation in the European and American markets, the company has taken three measures: do a good job of online product promotion, seize the online communication opportunities of large-scale exhibitions such as the Canton Fair; Give full play to the company's overseas branches visit and service advantages for marketing promotion; Business promotion in emerging markets, especially partners of the Belt and Road Initiative.

As a result of these measures, the company reached nearly $18 million in contracts in September, laying a good foundation for work in the fourth quarter and early next year.

The European and American markets are the traditional key markets of Zhejiang Native and Livestock Products Import and Export Group Co., LTD., accounting for more than 70% of its exports, with annual exports exceeding 400 million US dollars. This year to participate in the two Canton Fair, the company signed the intention of the transaction volume is basically flat, stable at about 1.93 million dollars. Chairman zhang bin said, the future focus will still be around textile garments, light industry products, livestock products three major parts, with clothing, bags, casing, textiles, paint brush, shoe, bee products our products fist European and American consumer groups, such as the stability of existing European and American markets, on the basis of further development in the Middle East, Africa, South America and other emerging markets.

Speaking of experience, Zhang Bin said that for a long time, Zhejiang native animals adhere to the "trade to industry and trade, and then to the integration of industry and trade" development, promote the upgrading of traditional foreign trade industry. Establish domestic and foreign upstream production bases by cultivating fist products; Through joint venture with downstream customers in Europe and the United States, the formation of a close community of destiny relationship, to ensure that customer orders continue to be stable. At THE same time, Zhejiang local livestock plays the state-owned enterprise capital and channel advantages, implements the whole supply chain management, cultivates the customer echelon, actively participates in the exhibition, stabilizes the customer, expands the market, and ensures the basic stability of the European and American markets.