Chinese firms pin hopes on region amid recession

Chinese small and medium enterprises (SMEs) are moving overseas to find a market for their products.

The companies are of the view that multinational corporations will find their products a better alternative in their cost-cutting exercise and that the Middle East will offer an alternative market.

Two of China's biggest customers, the US and Europe, have slipped into recession. Though China exports to other developed countries such as Canada and Japan, the companies are finding it difficult to do business as the global meltdown is also hitting these nations. These companies have realised that the Middle East market would be ideal to keep up business momentum.

"We don't know how long the recession will last. If we are able to take advantage of the Middle East market, there wouldn't be much impact of the crisis on us," said Erik Ho, Manager of Hangzhou Wistar Mechanical and Electric Technology Company Ltd.

Lichao Zhou, General Manager, Hangzhou Synox Pigments Co Ltd, said: "During the past three months foreign trade has recorded negative growth. Government support is limited to major companies. Maybe next year it will be our turn. We find that exhibitions like the Big 5 are very helpful in finding new customers."