Global trade is weakening regardless of trade war

Since the United States introduced tariffs on China, there have been various claims on the future of global trade. Some experts point out that global trade will continue to decline, whether or not trade wars break out.

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Some important global trade indicators are suddenly pointing downward. Chinese data for April may have looked fine, with exports up 3.7% on the year in yuan terms after falling 9.8% in March. Still, that rebound was likely thanks to the late Lunar New Year holiday in 2018: In seasonally adjusted terms, export volumes fell 2% on the month, Capital Economics estimates—the worst decline in nine months. Exports from Korea, another Asian trade bellwether, declined in April—the first drop since October 2016.

The droopy numbers have come in just as key industrial commodities are already coming under pressure. Copper prices are off over 6% this year, weighing on the share prices of miners like Freeport-McMoRan and Glencore. Dr. Copper’s weakness is a sobering sign for China and Asia in general: The region sucks up 70% of global demand for the metal.

Key manufacturing purchasing managers’ indexes have also started stuttering: U.S., eurozone, Chinese, Japanese and South Korean PMIs all appear to have peaked between December and February, although all—apart from Korea—are still expanding.

Slower global trade—particularly when paired with higher oil prices and rebounding inflation—bodes ill for industrial firms such as Caterpillar, Deere and Japan’s Komatsu. Caterpillar has already warned that its first quarter results were likely the “high watermark” for the year.

It might, though, help head off worse tensions between the U.S. and China. With the growth rate in Europe, China’s largest export market, suddenly looking much weaker, the cost of a big rift with the U.S. is rising. Chinese companies are also starting to struggle at home: Industrial profits grew just 3% in March, their worst showing since December 2016.

China is unlikely to budge on its determination to create national champions in tech. But it might start offering more meaningful concessions on tariffs, restricted sectors for investment, and other trade irritants if foreign demand for its goods wavers.

Given the extreme negotiating positions both sides have staked out, U.S. trade tensions with China may get worse in the near-term. But the gathering clouds over the global growth story might eventually help encourage cooler heads to prevail.

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factory inspection/loading monitor/trade assurance

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Useful tip to save sourcing time in global trade

• How do you choose the reliable suppliers from thousands of pages of suppliers in B2B platform?
• How long would it take for you to trust a new supplier?
• What’s your trade circle of an order?

China is a huge market with tons of suppliers to choose from. How to select the right one is an important task for the global buyers who want a share of the booming market. 

As one of the leading global trade supply chain platform in China, eGTCP.com has just the perfect solution for you-- 6C Suppliers recommendation.

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What is the 6C Suppliers?

6C Supplier refers to the supplier whose data has been verified by eGTCP in 6 categories, and proved to have good credit status and production capacity after field investigation.

Credit - Are you worried about the new supplier’s credit status? Don’t know how to check the supplier’s credit or expense of checking is too high? As one of our major features, you can check the supplier’s credit info such as Membership Level, Credit Line on our Platform to ensure safe trade. If the supplier has any abnormal operation or default records, we would alert you and save you all the loses. Plus, you can also take advantage of the supplier’s credit line to buy now and pay later! 

Certificate - If you require any certification for the imported products, we help you find out if the supplier has any Patents, CE, UL etc.

Customized - Do you need Sample? OEM? Factory Inspection Report? Anything specific requirements you need, we help you prepare in advance.

Commodity - You can judge the supplier’s capacity and level through info like Industry, Products, Export Volume, Trading Buyers etc.

Company - Through info like Company Type, Scale, Incorporation Date, Brief Intro and Website etc., you would have a clear idea of the company’s nature and scale to adjust your cooperation plan.

Contacts - As time is money, you would need to communicate with suppliers effectively through all the social media. Thus info like Contact Person, Country, Addr, Email, Tel/Mobile, Wechat would be immensely important.

Why you need 6C Suppliers to save your sourcing time?

There are just too many suppliers in China! If you visit every factory you intends to work with, the travelling and accommodation expense would exceeds your imagination. Plus, you cannot know a company in and out with just one visit.

The 6C Suppliers offers all the info you needed to judge whether the company is a suitable partner. Your valuable time would be saved to create more wealth elsewhere.

Case study

Mr Ashwin from Australia, one of Platform members, regards highly of the 6C Suppliers. “ I trust the 6C suppliers that eGTCP has recommended. They’re very good Chinese suppliers and I no longer worry about trade risks.”

6C suppliers have a special icon

He has first-hand experience dealing with risky suppliers and eGTCP platform helped him avoid huge losses through our Credit Inquiry.

Back in Oct. 2017, one supplier from Guangdong Province approached him through social media. He selected some of the models and asked for quotation. The price was very good. Indeed too good, much lower than the usual price. The supplier also accepts payment of 20% deposit, 80% against B/L.

At that time, Mr Ashwin also learned about platform’s new feature--Free Credit Report on Chinese Companies through our staff. He decided to trust us to investigate the suppliers.

The outcome shocked him. Credit report said that it was a small factory with less than 5 employees. It is also on the black list of companies with abnormal operation. Further investigation shows that it was a bait company which lures the buyer with extra-low price to scam for deposit. After receiving the deposit, would just disappear.

The previous buyer who fell for this scam would find that it is quite costly to appeal to court. It’s probably a waste of more time and money to file a lawsuit against this supplier. They would have to swallow the bitter lesson and sharpen their eyes next time.

search in egtcp.com to find if your supplier is 6C supplier

Lucky for Mr Ashwin, he has saved a lot of time and realized that the Platform was a true partner for his trade in China.  Through the 6C Supplier Recommendation, he soon found a quality supplier from Zhejiang Province and planed to place orders with the company.

He also intends to use the Platform’s other services like loading monitor and trade assurance to ensure that everything goes smoothly as expected.

How to get the 6C Suppliers recommendation?

As one of our 2018 offers, global buyers can now join us and get 6C Supplier Recommendation for free. Please contact the staff for more details or login to www.egtcp.com. 

Popular services in global trade:

financial support-$100,000, buy now, pay later

credit inquiry-know your partner's credit status to avoid trade risk

factory inspection/loading monitor/trade assurance

Follow us:

You can also contact eGTCP.com directly via mail (service@egtcp.com) or phone (+86 400-159-8448).

                                                              

Recommended: what is the reason behind Huayi's rapid development?

Today we'll introduce a leading import and export company in China to you.

Company Profile

Ningbo Huayi Import & Export Co,. Ltd.

Location: Yinzhou District, Ningbo City

Highlights: With “Integrity, Pragmatism, Innovation” as our business tenet, we focus on professionalism, attitude and services.

Ningbo Huayi Import & Export Co,. Ltd. was awarded the eGTCP Best Credit Service Provider on the 3rd GTCC for its excellent risk control system, professional services and positive client feedback.

General Manager of Comprehensive Business Department  JIANG Haiyong (Anna)

It is a company with quite a long history. Ningbo Huayi Import & Export Co,. Ltd. was founded in 1997 and was a wholly owned subsidiary of the Fiocco Group Co,. Ltd. with its main market aiming at China’s womenswear. In 2013, the company initiated its foreign trade service platform project, and has cumulatively offered the 24-hour one-stop foreign trade comprehensive services to over 3,000 SMEs.

The company has maintained its speedy growth in export volume for 3 consecutive years despite of the grim situation in the foreign trade industry. “In 2015, we ranked 133rd in the municipal foreign trade list, and after 2 years of rapid development we have risen to 33rd.” said JIANG Haiyong, General Manager of the Comprehensive Business Department.

How did Ningbo Huayi Import & Export Co,. Ltd. grow so rapidly in just a few years? General Manager Jiang answered this question with just 3 words: professionalism, attitude and focus.

Recently, Ministry of Commerce of the People’s Republic of China, General Administration of Customs, P.R. China, State Administration of Taxation, General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China and State Administration of Foreign Exchange have jointly issued the Notification of Promoting the Healthy Development of the Comprehensive Service Enterprises in Foreign Trade. For this new policy, General Manager Jiang thinks that there are 3 key points: the subject of liability is more explicit; the risk control is stricter; the punishment system is more mature.

 “ The filing system will be stricter which means that the manufacturers need to go through many more procedures by themselves. How to get the client to understand the meaning of comprehensive services? How to lead them to continue our cooperation? These are problems for our company and the whole industry.” said General Manager Jiang.

In 2017, Ningbo Huayi Import & Export Co,. Ltd. with its mind focusing on both credit and Internet, joined eGTCP.com officially and became a credit foreign trade service provider on the Platform. For the cooperation with the Platform, General Manager Jiang said, “ Our services are for SMEs, for they often encounter financial problems. But the Platform makes financing much easier which is exactly what SMEs need. So our cooperation is quite pleasant and I believe that we can achieve win-win together.”

Free services in global trade:

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You can also contact eGTCP.com directly via mail or phone.

Email: service@egtcp.com Tel: +86 400-159-8448

                                                            

China Is Building New Marine Economy

Global trade can not be separated from sea transportation. Nowadays, Chinese shipyards have recently made inroads into the high-end ship segment, to compete with their South Korean competitors.

What's facilitating that trend is the "marine economy", whose meaning has widened in recent times to include industries like shipping, fishing, aquaculture, oil and gas.

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Marine economy now includes sectors such as marine chemistry, biomedicine, ocean power, seawater use, marine tourism, ocean engineering and construction. A large variety of vessels serve these industries and sectors. Conventional vessels like bulk ships and ore carriers are no longer the kings of the marine economy transport system.

The new-age marine economy has created new opportunities for shipyards. More so for Chinese shipyards because of the Belt and Road Initiative.

Many economies participating in the initiative are seeking to develop trade, regional connectivity, offshore energy, tourism and other service businesses via the 21st Century Maritime Silk Road. Additional demand for ships is coming from China's increasing resource deployment into high-end manufacturing as part of the Made in China 2025 strategy.

Lin Zhongqin, president of Shanghai Jiaotong University, said capable Chinese shipyards have already upgraded their products, having sold cheap bulk carriers and tugboats for more than a decade. They now make complex, high value-added vessels to reach buyers in new segments through international collaboration, research and development activities.

Chen Jianliang, chairman of Hudong-Zhonghua, said China, as well as both developed and developing countries, are all eager to purchase natural gas from abroad to adopt greener energy. LNG carriers can meet the demand to secure their energy supply from overseas markets.

The American Bureau of Shipping, a Houston-based classification society, predicted that around 100 LNG carriers will be bought by different shipowners across the globe between 2017 and 2020.

"China is shifting from producing inefficient and dated vessels that are clogging up Chinese shipyards to investing heavily in the rapidly growing market of LNG and liquefied petroleum gas or LPG carriers, as well as marine fishing ships, law enforcement vessels, large icebreakers and chemical tankers," said Chen.

In addition to LNG carriers, another Chinese shipyard, Shanghai Waigaoqiao Shipbuilding Co Ltd, is building a cruise liner, the first such vessel to be built on the Chinese mainland. It is expected to be delivered to a Hong Kong-based buyer in 2023, marking a milestone in the evolution of the country's shipbuilding industry.

"The construction of China's first cruise ship will help improve various sectors of the domestic shipbuilding ecosystem, which will become part of the global supply chain," said Dong Liwan, a shipbuilding professor at Shanghai Maritime University.

Even though Chinese shipyards have recovered a bit in the first half of this year, Dong said competition with South Korean competitors will be fierce in the long term, especially at a time when the whole industry is witnessing price wars and demanding advanced ships with more functions.

South Korean shipyards received 34 percent of global orders in the first half of this year, to top the world's country-wise list for the industry's giants, according to British shipping and offshore market intelligence provider Clarkson Research Services Ltd.

Three South Korean companies including Hyundai Heavy Industries Co and Hyundai Samho Heavy Industries Co, received 72 ship orders, including 60 for oil tankers and very large crude carriers or VLCCs, with a total value of $4.2 billion.

As the report say, Chinese shipyards will be more competition with South Korea competitors. Also the global trade.

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You can also contact eGTCP.com directly via mail or phone.

Email: service@egtcp.com Tel: +86 400-159-8448