According to a new survey from Global Sources—which queried 581 Chinese exporters—as orders slow from the European Union due to debt crisis issues, Chinese suppliers are revving up overseas shipments to emerging markets.

In the months ahead, 42% of survey respondents said they expect to strengthen their footholds in South and Latin America, the Middle East, Africa, Eastern Europe and the Asia-Pacific region. Suppliers are particularly optimistic about markets in Asia, mainly because of China’s free trade agreement with many countries in the region.

Almost 20% of companies said they plan to increase their presence in the China domestic market, as consumption has been on the rise, due in part to favorable government policies.

In addition:
15% plan to speed up the release of new products;
11% of exporters said they will cut production costs to boost profitability;
10% said they are planning to increase R&D spending as they strive to improve product offerings;
3% are considering relocating their factories to low-cost areas; and
1% of suppliers believe they may have to shut down their factories if the situation does not improve soon.

Nearly all respondents said they have felt the effects of Europe’s debt crisis on exports. Thirty-five percent reported significant impact, while almost 60% said there has been some impact.

Europe shipments for 66% of surveyed manufacturers have dropped in the past few months. However, 22% said their exports were stable, and the rest reported an increase.

The complete survey can be downloaded for free at http://www.globalsources.com/NEWS/Survey-Europe-Debt-Crisis.html.