A Study On The Expanding Of Emerging Market For China’s MEP

Mechanic and Electronic Industry has always been a pillar industry of our country’s trade, occupied almost half of the total exports of goods and its export has grown since the first year of 21st century, played a key role on the promotion of goods trade growth with an average annual growth of 21.5% in 2000-2013. But due to the impact of the financial crisis in 2008, the export growth of China’s Mechanic and Electronic Product (MEP) has been slowing down, exposing the weakness in the ability responding to the global economic fluctuations gradually. Overly depending on the traditional and top markets whose demand has reduced is the main cause of export decline. At present, developed economies’recovery is so slow, the international demand is still short, trade protectionism has revived, MEP exporting enterprises of our country is facing unprecedented challenges under such international situation. To realize the steady and rapid development of the MEP export, maintain export growth and the sustainability of economic development, taking emerging markets whose demand is rapidly growing and full of market potential in the future as a new export growth points, optimizing the layout of global markets is one route we must take.Firstly, on the basis of the analysis on market structure, this paper normatively analyzed the necessity of developing emerging markets for MEP in this two levels: implementing the trade policy for stable growth of foreign trade and complying with the new trend of international economic and trade pattern. In the second quarter of 2015, the government introduced a series of policies for the stabilization of export growth, specifically made it clear that promoting the adjustment of market structure is one important step to foster new foreign trade competitive advantage under current complex international environment. Beyond implementing trade policies, developing emerging markets of MEP also helps to cultivate a large number of international brands, also be in line with our country’s strategy to unite emerging countries to create a new system of international trade, facing the fact that the western countries are trying to reverse the historical trend that international economic and trade center has begun to transfer to emerging countries.Secondly, by using the method of empirical analysis, this paper studied China’s MEP export competitiveness and export growth driving factors. After analyzed competitiveness with RCA、TCI and technical complexity index, we found that:the overall export comparative advantage and technology content of China’s MEP is showing signs of slowdown in recent years after years’rapid ascent, although preceding emerging countries but there’s still a gap between us and Germany, South Korea and Japan. The study with product segmentation shows that the structural imbalances of MEP is serious, our mid-range technological products in emerging markets face huge demand with obvious export advantages, but our high-range technological products’performance is still not ideal facing the local and the main competitors’competition with export disadvantages. The CMS model was used to quantitatively analyze export promoting factors and found that: the export growth of China’ MEP more and more depends on the growth of import demands; The adjustment of export products’structure indeed played a positive role on export growth for a long time and the direction of structure adjustment is mainly based on static demand structure, but did not accurately comply with it’s dynamic change; In addition, the various factors promoted export growth in different degrees with the change of specific emerging country, differences between each market are obvious.Finally, based on the analysis conclusion, this paper put forward some concrete countermeasures and suggestions for China’s MEP expanding emerging market. This paper suggested that facing export bottleneck, to catch the opportunity of global pattern adjustment, we should put developing emerging market and optimizing the market structure on a more important strategic position. Our government should consider the difference of product categories and enterprises’strength before making any industrial policy. For our competitive products, give priority to strengthen the comprehensive competitive power both on the technology content and service level; for our uncompetitive products, take preferential measures to support and encourage. In addition, the work such like the release of market information and market guidance should also be well done. On the enterprise level, managers should fully realize the potential demand from emerging markets, build excellent team for market researching and marketing, take flexible markets means such as joint production and foreign investment, product and export competitive, different products with our own brands to emerging markets.In this paper, funding new questions and using modeling tools may be some kind of innovation, and there’s also flaw that the data span and product classification is not deep and not thin enough, remaining to be further supplemented and improved in the future research. Hope this article can provide certain practical guidance to our planning of international MEP markets, to the sustainable development of our export and the transformation of our country from a big manufacturing country to a manufacturing power.