A 25% tax increase on the Chinese company made its products more expensive, but American customers kept buying them

Since 2018, the obvious changes in the external environment have brought a great impact on enterprises. The future is still uncertain. How can we win in the change? Reporters visited a number of enterprises, the answer is: only with change, can maintain the competitive advantage.

In the Huzhou micromotor company, the workshop leader told reporters that their products have been imposed a 25% tariff by the United States, the company's profits have been reduced in the first seven months, and workers' wages have also been affected.

Qiu Qinfang, workshop director of Zhejiang Teda Micromotor Co., LTD. : (Salary) Four thousand, five or six hundred less.

Despite the squeeze on profit margins, the company's output in the first seven months of the year was still up 5 percent from a year earlier, largely due to its aggressive expansion into markets along the Belt and Road Initiative.

Qiu Rongquan, Chairman of Zhejiang Teda Micromotor Co., LTD. : This one is exported to Indonesia, this one is exported to Turkey and this one is exported to Egypt.

In the warehouse, many goods are destined for Southeast Asia, the Middle East and Latin America.

Qiu Rongquan, Chairman of Zhejiang Teda Micromotor Co., LTD. : Our current development is to do business with the "Belt and Road" countries, which have a large purchase volume.

Even if we open up new markets, we still face many new challenges. However, with the opening of new market space, enterprises have found new impetus for development. The reporter found in the interview that many enterprises are still confident in the face of pressure because they are not only flexible, but also able to promote the transformation and upgrading of enterprises in the face of changes.

In Jiangsu Tiangong Group, the reporter saw that their steel, a ton can sell to 140,000 yuan, still in short supply.

Xu Qin, Manager of International Trade Department, Jiangsu Tiangong International Co., LTD. : Sales are very good in this market now. The original delivery time was three months.

Reporter: Too late to grab it?

Xu Qin, Manager of International Trade Department of Jiangsu Tiangong International Co., LTD. : Yes.

The staff told the reporter that although this product was levied 25% tariff by the United States this year, but because the product is irreplaceable, even if the tax increase leads to the price of the product, American customers still accept unconditionally.

However, the strength of enterprises today cannot be separated from the experience brought by the international financial crisis 10 years ago.

Zhu Xiaokun, Chairman of the Board of Directors of Jiangsu Tiangong International: At that time, we placed a one-time order of 40 million dollars with a German company. Later, when we encountered the financial crisis, the company asked us to cancel the order, which brought us huge losses.

After reflecting on the pain, Zhu Xiaokun made a bold decision: make great efforts to "transform" and enter the market irreplaceable high-end products.

Zhu Xiaokun, Chairman of the Board of Directors of Jiangsu Tiangong International: Our annual investment in innovation will be at least 30 million yuan. We have 130 people dedicated to technological development and research. Of all the equipment we buy in our factory, perhaps the most expensive is R&D equipment.

In the persistence of innovation, finally let the enterprise tear off the label of low-end products, the new products have become a hot international, tight products.

In this investigation and interview, the reporter deeply felt that the external environment is changing, so is the development of enterprises. Open up new market space and create new competitive advantages. Along the way, Chinese enterprises are not only resolving risks, but also striving to achieve a profound transformation of their own transformation and upgrading. That is the hope for China's economic future.