XTransfer released its first export PMI. In April, the export of goods of Guangdong's small and medium-sized enterprises (B2B) showed an expansion trend.

Recently, XTransfer, a one-stop cross-border financial and risk control service company for foreign trade enterprises, released the Guangdong Province Small and Medium Enterprises ( B2B) Goods Export Trade PMI Index in April (hereinafter referred to as: XTransfer Guangdong Province Export PMI), which is the first export trend survey index initiated by the Chinese private sector for the foreign trade industry. The data shows that XTransfer Guangdong Province Export PMI reached 53.8% in April , which is in the expansion range. The overall export trade of Guangdong's small and medium-sized foreign trade enterprises is in good condition.

XTransfer Export PMI is calculated by weighting six classification indexes : export orders, export goods prices, goods procurement, export logistics efficiency, capital turnover, and employees of small and medium-sized foreign trade enterprises . The first XTransfer Export PMI focuses on Guangdong Province. Taking the 135th Canton Fair as an opportunity, an in-depth survey was conducted on 1,000 small and medium -sized foreign trade enterprises in Guangdong on the XTransfer platform, aiming to provide important guidance and strategy formulation basis for the export of small and medium-sized foreign trade enterprises over a period of time.

The export situation is improving thanks to the increase in orders from emerging markets

From the perspective of the sub-indexes of XTransfer PMI, among the six major classification indexes, the export order index, export goods price index, and capital turnover index are all significantly higher than the 50% critical point. The employee and goods procurement indexes are slightly higher than the critical point, while the export logistics efficiency index is significantly lower than the critical point.

The export order index reached 57.8%, indicating that the international market demand for Chinese goods continued to rise, especially the trade orders from emerging markets and "Belt and Road" countries increased significantly. This trend not only reflects China's important position in the global trade system, but also shows the competitiveness of Guangdong's small and medium-sized enterprises in the international market.

The export goods price index reached 53.7%, indicating that China's manufacturing export products are gradually moving towards high-end, and product prices and competitiveness are steadily improving. The capital turnover index reached 69.7 % , the highest score among all classified indicators. According to the sample companies, companies concentrated on negotiating orders in February and March after the Spring Festival, and April was the time to collect payments. This indicator is affected by seasonal factors to a certain extent. Many foreign trade companies also said that in recent years, people are no longer bound by offline transactions, and online transaction links and time are more efficient. Third-party payment platforms have provided great support in the efficiency of cross-border trade collection.

It is worth noting that the export logistics efficiency index is only 41.4%, which is significantly lower than the critical point, reflecting that there are still bottlenecks and challenges in the current international logistics links. Overall, the growth of export orders has caused difficulties in delivery to a certain extent, and the frequent international shipping crises have further affected shipping efficiency. As international logistics fortresses, the Panama Canal and the Suez Canal are facing a "double crisis". With the continuous development of global trade, the improvement of logistics efficiency will become an area that small and medium-sized foreign trade enterprises need to focus on.

Small, medium and micro foreign trade enterprises are accelerating their efforts to tap into the "African market"

From the perspective of export destinations, the export PMI index of small and medium-sized foreign trade enterprises exporting to emerging markets such as RECP, ASEAN, and the Belt and Road Initiative in April was significantly higher than that of European and American countries.

In the past two years, China-Africa trade has been frequent, and China has maintained its position as Africa's largest trading partner for 15 consecutive years. The just-concluded 135th Canton Fair had more than 30,000 African merchants registered to attend the fair. In addition, 2024 is a big year for the development of China-Africa relations. Guangdong's small and medium-sized foreign trade enterprises are full of confidence in the African market in the future.

Wang Chuangliang, a partner of Guangdong Baohongxiang New Materials Technology Co., Ltd., said: "The technological gap between Chinese products and those of Europe and the United States is narrowing. Facing emerging markets, our product advantages in technology and supply chain are also becoming more prominent. Emerging market countries such as Pakistan, the Middle East and Africa are developing rapidly, and the demand for high-quality raw materials is very strong."

The intermediate trade goods export PMI index reached 56.2%

In terms of export product categories, among the 22 major export categories announced by the General Administration of Customs, Guangdong Province's 1,000 small and medium-sized foreign trade sample enterprises covered 20 categories, and the top five categories were: electromechanical products, daily miscellaneous products, textile raw materials and their products, base metals and their products, and medical devices and precision instruments.

Although electronic products, clothing products, and daily miscellaneous products are the basic export base of Guangdong's small and medium-sized foreign trade enterprises, it is not difficult to see from the XTransfer export PMI index of these five categories that the export PMI index of high value-added and high bargaining power products is higher. Many interviewed small and medium-sized foreign trade enterprises said that in the trade of intermediate products with technological added value such as raw materials, semi-finished products, and parts, bargaining power and profit margins are steadily increasing.

As a link between upstream and downstream industries, intermediate products are increasingly becoming the main body of global trade. At the Central Economic Work Conference held at the end of 2014, in the specific deployment of "accelerating the cultivation of new foreign trade momentum", "expanding intermediate product trade" was not only proposed for the first time, but also ranked first. Guangdong has a relatively complete industrial chain and supply chain, which is very suitable for the development of intermediate product trade, and more flexible small and medium-sized foreign trade enterprises have timely smelled and seized the opportunity.

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