China's manufacturing hub enhances economic and trade exchanges with Europe

GUANGZHOU, July 29 (Xinhua) -- With scorching temperatures gripping much of the northern hemisphere, demand for cooling appliances such as air conditioners, refrigerators, and fans has soared across Europe.

This surge is being felt thousands of miles away in Shunde District of Foshan City, south China's Guangdong Province, often dubbed the "home appliance capital of China." In the first half of this year alone, Shunde saw a significant rise in exports of home appliances, with an average of 600 containers packed with such appliances leaving the district each day.

"This is a golden opportunity for us to secure orders and expand into new markets," said Li Huihua, director of the international logistics customs and documentation center at Midea Group, one of China's leading home appliance manufacturers.

"We tailor our product development and sales strategies to meet the European Union's standards for energy efficiency and smart features," he added. "For example, our air conditioners with no-wind sensation, which use AI technology to detect body position and adjust airflow automatically, have gained strong popularity among overseas customers," Li explained.

This year, Guangdong Midea Refrigeration Equipment Co., Ltd. has exported nearly 10 billion yuan worth of home appliances, according to the company.

In addition to traditional home appliances, a growing range of made-in-China products is gaining traction in the European market. Among them are electric bicycles from Guangzhou Sameway Electric Bicycle Co., Ltd., which feature motors and lithium batteries that provide faster speeds than standard bicycles while remaining lighter than traditional electric models.

"In recent years, cycling has gained popularity across Europe, but many routes have steep slopes," said Hou Dezhi, general manager of the company. "After conducting in-depth market research overseas, we developed lithium-powered mountain bikes, with an annual production capacity of 80,000 units."

In the first half of this year, the company exported lithium-powered mountain bikes and related products worth nearly 28 million yuan (about 3.92 million U.S. dollars) to Europe, marking a 35.6 percent year-on-year increase.

Guangzhou Sameway Electric Bicycle Co., Ltd. is actively expanding its cross-border e-commerce operations and has established overseas warehouses in Poland, Germany and other countries, with a total inventory valued at over 80 million yuan. According to an official from Huadu Customs in Guangzhou, leveraging these overseas warehouses enables European consumers to place online orders and receive their purchases within 48 hours, as goods are shipped directly from local inventory.

The growing popularity of products from Guangdong in Europe is underpinned by strengthening China-Europe ties, a well-developed international logistics network, and increasingly diversified economic and trade cooperation.

In the first half of this year, Guangzhou Customs oversaw 175 China-Europe freight trains, including dedicated trains for automobiles and home appliances, shipping 16,000 TEUs totaling 88,000 tonnes and valued at 4.13 billion yuan.

At present, the China-Europe freight train from Guangzhou International Port has formed a network of 18 routes, including 13 outbound and five inbound, covering 20 countries in Asia and Europe, with exported goods spanning automobiles, home appliances, clothing, daily necessities, and more.

As one of China's three major international aviation hubs, Guangzhou Baiyun International Airport has launched more than 10 direct flights to European cities, including Paris, Amsterdam, Rome and Helsinki. In the first half of this year, customs at the airport supervised exports to the European Union worth over 27.5 billion yuan, marking a year-on-year increase of approximately 8 percent.

China's continued efforts to expand opening up, combined with deepening cooperation between Chinese and European companies, have helped drive this growing wave of trade.

For many European businesses, the Chinese market is indispensable. The German TÜV Rheinland Group, a leading independent testing, inspection and certification organization, generates around 30 percent of its global revenue from China. The group has provided services to over 300,000 local enterprises, helping "Made in China" products gain smooth access to international markets and playing a role of bridge in promoting China's foreign trade economy.

Xia Bo, president of TÜV Rheinland Greater China, noted that as China's industrial innovation and technological capabilities continue to grow, more Chinese standards are expected to be elevated to international standards within the next five to ten years, helping China transition from a follower and peer to a global leader. As Chinese companies accelerate their global expansion, TÜV Rheinland is also continuously upgrading its services to support the internationalization needs of Chinese businesses.

Xia added that economic and trade exchanges between China and Europe are becoming increasingly close and intertwined. The company's German headquarters now hosts visiting Chinese government and business delegations almost every week, exploring new avenues for cooperation. Such exchanges, he noted, are particularly insightful for both sides, especially in emerging technological fields.

According to the "2024 Business Confidence Survey Report" published by the European Chamber of Commerce in China, 73 percent of respondents are willing to expand their current operations in south China, and 61 percent believe that doing business in south China is relatively easy.

"The South China Chapter has over 250 member companies, all of which highly praise the region's business environment," said Klaus Zenkel, vice president of the EU Chamber of Commerce in China and chairman of the European Chamber South China Chapter, who has lived in Guangdong for more than 20 years.

Recently, Zenkel took part in the Shenzhen-EU SME Government-Business Exchange Meeting alongside dozens of European SMEs' representatives. He noted that European companies across various industries are growing in tandem with the Chinese market.

Shenzhen, renowned for its dynamic private economy and thriving small and medium-sized enterprises, boasts a complete industrial chain, Zenkel said, adding that collaboration between European SMEs and Shenzhen's AI companies is set to accelerate rapid technological iteration and application.

In the first half of this year, the total import and export value of Guangdong, one of China's major manufacturing hubs, with the European Union reached 542.43 billion yuan, marking a year-on-year increase of 7.2 percent. The exports amounted to 429.85 billion yuan, up 5.7 percent year on year, while imports totaled 112.58 billion yuan, up 13.1 percent year on year, according to local customs. ■