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How to expand Chinese fasteners into the international market

Date:2022-06-30 Autor:fastening element Views:26

China’s fastener industry is expanding into the international market, with its core strategy shifting from the early approach of “cheap dumping and independent operations” to a combination of “market diversification, global production capacity, high-end products, and localized services”. In the face of tariff barriers in Europe and the United States, as well as the restructuring of the global supply chain, the specific layout strategies are as follows:
1. Market layout: Diversify risks and drive growth through multiple poles
Consolidate high-end markets in Europe and the United States: Despite trade barriers, Europe and the United States (especially Western Europe) remain the primary markets for high-value-added products. Strategically, we should shift from “price competition” to “technical compatibility”, and secure our market share by meeting stringent certifications (such as IATF16949, AS9100D) and environmental standards (such as the EU’s Carbon Border Adjustment Mechanism (CBAM), RoHS).
Deeply cultivating emerging markets: Focusing on expanding along the Belt and Road, ASEAN, Central Asia, and Africa. Data from 2025 shows robust demand in Vietnam (with a growth of over 30%), Thailand, Kazakhstan (with a growth of 51.1%), Nigeria (with a growth of 10.7%), and other regions. The infrastructure and industrialization processes in these areas have brought numerous opportunities for standard parts and engineering fasteners.
Leveraging the RCEP dividend: Leveraging the zero or low tariff policies of RCEP, ASEAN can serve as a springboard and important production base, radiating to the global market.
2. Production capacity and supply chain: Establishing factories overseas and arranging near-shore layout
Establishing Factories Overseas to Avoid Barriers: In response to the high tariffs imposed by the United States and the European Union, leading enterprises (such as Jinyi and Zhenjiang Co., Ltd.) have adopted the “China+1” strategy. They have established full-process or partial production lines in Thailand, Vietnam, Malaysia, and other places, leveraging local rules of origin and cost advantages to achieve “nearshore manufacturing” or avoid direct export taxes.
Establishing overseas warehouses and logistics: Set up overseas warehouses and exhibition centers in Indonesia, Kazakhstan, Dubai, and other places (such as Hebei Yongnian, which has established more than ten overseas warehouses), shorten the delivery cycle, provide “warehouse-to-door” services, and enhance the response speed of the supply chain.
Transshipment and transit strategy: Make rational use of third countries (such as Malaysia and Vietnam) for compliant transshipment trade to cope with anti-dumping duties imposed by specific countries, but pay attention to the compliance risks of rules of origin.
3. Products and Brands: Breaking Through and Standard Output
High-end transformation: Reduce dependence on ordinary standard parts (with low profits and high friction), and focus on high-strength (≥800MPa), lightweight (aluminum/magnesium/titanium alloys), corrosion-resistant (wind power/marine engineering), and intelligent fasteners. These products have high added value and are less susceptible to the impact of ordinary trade wars.
From selling products to selling solutions: Leading enterprises (such as Shenyi Precision and Dingxi High-Strength) no longer merely provide screws and nuts, but offer “connection solutions + testing services + technical support”, binding downstream major clients (such as wind turbine manufacturers and construction machinery giants) to their global projects.
Standard leadership: Actively participate in the formulation of international standards, promote Chinese standards (such as “Longzihao” and “Yongnian brand”) to go global, especially in regions such as Africa and Central Asia where acceptance of Chinese standards is high, achieving “standard going global”.
4. Channels and Models: Collaborating to Go Global, Empowered by Digital Technology
Group participation: Industrial clusters (such as Yongnian in Hebei and Haiyan in Zhejiang) organize enterprises to collectively participate in top exhibitions such as the Stuttgart Fair and the Cologne Hardware Fair in Germany, receiving orders as a “cluster” to reduce individual costs and enhance bargaining power.
Cross-border e-commerce: Targeting the small-batch, multi-batch maintenance, repair, and operations (MRO) market and small and medium-sized B2B customers, we leverage Amazon, AliExpress, and vertical B2B platforms (such as JD Industrial Global Platform) to promote the sale of small-packaged and boxed products, thereby penetrating the long-tail market.
Summary:
The current successful layout path typically involves: domestic headquarters responsible for research and development and high-end manufacturing + overseas bases (Southeast Asia/Middle East) responsible for assembly and tax avoidance + global warehousing responsible for agile delivery + targeted development of high-value-added niche markets. The traditional export model that solely relies on low prices and high volume has become difficult to sustain in the international market.