Shen Jianshan, president of Camda New Energy Equipment Co, said building a relationship with overseas companies in the areas of innovation and technology cooperation will greatly help domestic manufacturers better tap the international market and avoid foreign-exchange losses.

The company, based in Dongguan, a manufacturing hub in the Pearl River Delta, started upgrading its business.

It's gone from just manufacturing diesel-powered generation equipment to making alternative-fuel products, after acquiring high-level foreign technology, according to Shen. In the past few years, the company has invested some 100 million yuan ($16.4 million) in upgrading its products, said Shen.

"Only through upgrading products and boosting innovation can traditional manufacturers avoid losses caused by low global demand and the stronger yuan," Shen told China Daily.

After increasing its efforts in technological innovation and research and development, the company's overseas sales are expected to reach 120 million yuan this year, according to Shen.

The company has opened 12 sales agencies in Germany, the United Kingdom and other countries, including some in Southeast Asia.

"There is growing overseas demand for energy-efficient and eco-friendly products, especially in Southeast Asia. We've already secured orders worth 260 million yuan for next year," Shen added.

Xian Zhou'en, director of the Dongguan Economy and Information Bureau, said that local authorities have taken steps to help thousands of smaller companies better cope with the international market.

"We will not give up helping local exporters, which have been struggling with the impact of the global downturn since 2008.

"Now, they are more worried about losses caused by the rising value of the yuan and low demand in the global market," Xian said during the China (Dongguan) International Science and Technology Cooperation Week on Tuesday.