The Impact of U.S. Financial Crisis on Chinese Packaging Machinery Industry

The three major US financial giants Lehman Brothers, Merrill Lynch, and Bear Stearns Investment Bank have all withdrawn from the stage of history; the two major mortgage finance giants Fannie Mae and Freddie Mac have been taken over by the U.S. government; pounds sterling, the euro depreciated by 20%; international oil prices It fell back to 66 U.S. dollars; the U.S. dollar appreciated slightly; international ocean freight rates shrank sharply, and prices fell by 60%; steel, aluminum, and copper fell sharply.

Regarding the US financial crisis, it was also said that it was the most serious and biggest crisis after 1929 that affected the world. Former Federal Reserve Chairman Alan Greenspan said that the United States is in the midst of a “hundred year” financial crisis. The possibility of causing economic recession is increasing.

As a practitioner of the Chinese packaging machinery industry, I personally believe that the impact of the US financial crisis on China and the impact on the Chinese packaging machinery industry is not so terrible!

It is true that China has chosen reform and opening up, has chosen a market economy, and has chosen to be in line with international standards. It is inevitable that the international financial turmoil will have a certain impact on China. In particular, China’s economic growth model in the previous period is based on investment. It depends on exports, which means that we are highly consistent with the volatility of the world economy. The international financial turmoil has a certain negative impact on the domestic economy.

However, the severity is not so terrible! In particular, the impact on Chinese packaging machinery companies is even smaller.

First: The degree of marketization of China's financial industry has not been so deep.

Compared with European and American countries, the Chinese financial system is still relatively conservative. The degree of marketization is not yet very high, especially in terms of financial innovation, there will be no situation similar to that in the subprime mortgage crisis. Therefore, conservativeness also has a conservative advantage. The impact of the global financial crisis on China is limited.

Second: The love and control of China's packaging machinery in the financial investment industry is far from enthusiastic about Silicon Valley and Wall Street.

As we all know, whether international or domestic financial investors are more keen on profit-maximizing industries, such as Silicon Valley's IT industry, Wall Street securities, etc., and traditional manufacturing industries such as packaging machinery generally do not catch a cold. So the financial industry is The control of machinery is worse, and there are more private enterprises in domestic packaging machinery companies and fewer listed companies. Therefore, the financial crisis has little impact on the capital chain of the packaging machinery industry.

Third: China is a developing country. The space for economic development is still relatively large and the environment is good.

China's industrial economy is far less developed than Europe and the United States, and the average level of mechanical manufacturing equipment is at least 10 to 20 years behind. Therefore, there is a large space for industrial economic development, and the demand for packaging machinery is also relatively large, especially automation equipment.

Fourth: Eight hundred million people are in rural areas. The country’s rural policy has achieved initial success. The development of the rural economy will indirectly stimulate the development of related industries.

Consumption in rural areas is obvious for stimulating domestic demand. Consumer products in rural areas increase, and then the demand for packaging machinery products from manufacturers of upstream consumer goods will increase. This can produce a chain reaction.

Fifth: The decline in the prices of steel, aluminum, and copper is a good thing for the packaging machinery industry.

Sixth: The financial crisis itself is a self-adjusting method. It is not necessarily a disaster for the packaging machinery industry. For example, for employment issues, the financial crisis has come, and there are many unemployed people, then for the packaging machinery industry, workers It is a good thing to have abundant supplies.

Here is just to talk about it, mainly driven by the domestic market. Some people say that if they occupy the Chinese market, then whoever takes over the international market. This is a certain truth. This reference is a reference for the domestic packaging machinery industry. In China, the advantage brand of the packaging machinery industry has not yet formed. This is an opportunity for domestic packaging machinery companies. Therefore, the financial crisis is not necessarily a bad thing for the Chinese packaging machinery industry. The survival of the fittest is the survival of the fittest.