(Yicai Global) April 7 -- Chinese firms working in international trade are seeing orders evaporate as the Covid-19 pandemic takes its toll around the world. Many are turning to live broadcasts and other means to drum up business, the Securities Daily reported today.

Imports from Europe and the US are set to fall significantly as the coronavirus rages worldwide, the Securities Daily reported, citing Wu Chaoming, chief economist at Changsha, Hunan province-based Chasing Securities. Exporters are facing a great slump in orders, he added.

China's exports had already fallen 17.3 percent in January-February from the same period a year earlier, according to customs data released on March 7. That was mainly due to factories being closed because of the Chinese New Year holiday and the Covid-19 outbreak. Exporters are now seeing a drag on business as the virus hits economies around the world, crimping demand for their goods.

Five percent of foreign orders placed with textile and garment giant Hodo Group have been cancelled, according to an executive at the firm. Twenty percent have been postponed and 70 percent remain in place, he said. There has been an overall delay in placing orders and the payment cycle has been pushed back.

"But Hodo has found a way through this difficult period by manufacturing epidemic protective goods," said Zhang Hong, vice general manager of the firm's international unit. 

Long Work Hours

"We've been working until 10 p.m. almost every day lately communicating with our overseas clients," he added. The Wuxi-based company has received many international orders for protective clothing for civilians. It is also in the process of applying for the relevant licenses to sell medical protective gear.

Bichamp Cutting Technology, a leading manufacturer of bimetallic band saw blades, has also been hard hit as many European finished product steelmakers have stopped production, said Xie Yingbo, the firm's board secretary.

"Dealers have delayed their purchase plans for Bichamp products," he added. New projects in Italy and France have been paused. The Changsha-based firm had projected that exports would make up half of its total sales within the next three to five years but this plan is now unlikely as growth in the European market, the firm's focus this year, is put on hold.

"Bichang hopes that the government can offer subsidies for online promotion such as through virtual reality videos and data platforms," Xie said.

Yantai, Shandong province-based Jereh Environmental Management Group, which provides environmental and engineering services in the areas of oil and gas, now uses live broadcasts to show clients in Saudi Arabia their whole testing procedure and to allow them to remotely check and accept equipment, an executive said.

The situation is expected to continue for some time, Wu said. Companies should turn to online business models and proactively seize orders through remote negotiations. In order to maintain their market share in foreign trade, they should turn to countries less badly affected by the pandemic. They should also try to sell some of their products for export domestically.

Editor: Kim Taylor