Affected by the global financial turmoil, domestic enterprises have been having a harder time, especially those which have traditionally counted on overseas clients. So now, some export-oriented companies have begun looking within China for new business.

With overseas orders shrinking gradually, some export-oriented companies have begun turning to the domestic market to look  for new clients.

Sangyang Group is a clothes manufacturer in Jiangsu Province with a focus on goods for export. This year, the company has had a harder time at the bargaining table with foreign clients than ever before.

The group's products are all sold overseas. Of its products, 90 percent are sold to the United States, the remaining 10 percent are sold to the European market. Since the beginning of this year, with the continuing appreciation of the RMB to the US dollar and the Euro, business has gotten harder.

Lu Wenchang, Board Chairman of Sangyang Group said "I cancelled an order for 3 million pieces for the United States this March. The order was worth about 90 million yuan. But because the order basically didn't make a profit, it would have meant monetary losses for me."

With overseas orders shrinking gradually, some export-oriented companies have begun turning to the domestic market to look for new clients.

Another big change for these companies -- to save on costs, more and more have move their factories to the midwest regions. And foreign purchasers have followed, going to Chengdu to put in their orders.

Russian businessman said "The global financial crisis has definitely affected us. Some of the companies we used to work with, located in the eastern cities, have changed. But we still need to purchase shoes from China, so we bring our orders here."

Affected by the financial crisis, some shoemakers in eastern China have closed down. So, many international orders are now placed in Chengdu, where about 1,700 shoemakers produce 200 million pairs of shoes annually. The city has exported about 100 million US dollars of products in three months since the financial crisis erupted.

Source:CCTV