Due to China's low-price offensive... "Sales have decreased" Gwangju manufacturing industry emergency

Gwangju-area manufacturers are struggling due to China's low-price and high-volume offensive.

On the 6th, the Gwangju Chamber of Commerce and Industry announced the results of the '2024 Survey on Opinions Regarding China's Low-Price and High-Volume Offensive,' conducted on 152 manufacturing companies located in Gwangju Metropolitan City.

The survey results showed that 62.5% of the responding companies reported that they have been or expect to be affected by China's low-price and high-volume offensive on their actual business performance, while the remaining 37.5% answered that the impact would be minimal or none.

The damages currently experienced or feared in the future were led by 'pressure to lower selling prices' at 62.1%. This was followed by 'decrease in domestic transactions (46.3%)', 'poor overseas sales excluding China (30.5%)', 'decrease in exports to China (13.7%)', and 'business downsizing or suspension due to poor performance (12.6%)' in that order.

As for necessary support policies, 'measures to protect domestic industries (38.2%)', 'expansion of research and development (R&D) support (32.9%)', 'support for pioneering new markets (32.2%)', 'expansion of trade finance support (12.5%)', and 'support for utilizing FTA tariff benefits (11.2%)' were mentioned.

China was also found to be a threat in terms of technology and quality. When asked how their own technological capabilities and quality competitiveness have changed compared to Chinese competitors over the past five years, 67.8% of the responding companies answered that they have 'already been overtaken by Chinese companies or the gap has narrowed.' Those who answered that they 'continue to maintain an advantage' accounted for 32.2%.

A representative from Gwangju Chamber of Commerce and Industry stated, “While domestic demand remains sluggish and management uncertainty continues, Chinese products have gained competitive advantages not only in price but also in quality, posing a significant threat to local manufacturers. It is necessary to provide multifaceted institutional support such as investment support and increased subsidies for facilities so that regional companies can respond to China's offensive. Companies themselves also need to actively prepare countermeasures to strengthen competitiveness, including technological innovation, quality enhancement, and securing specialized personnel.”

This content was produced with the assistance of AI translation services.