Composite Fabric,bonded fabric,Lamination Fabric Lamination Fabric News Sluggish imports and exports, exchange rate issues make companies wary

Sluggish imports and exports, exchange rate issues make companies wary



When the reporter contacted Yang Xiaochuan, he was visiting customers intensively in Thailand to combat the declining export volume and share. He was not surprised at all by the latest data reported by reporter…

When the reporter contacted Yang Xiaochuan, he was visiting customers intensively in Thailand to combat the declining export volume and share.
He was not surprised at all by the latest data reported by reporters. From January to May, his company’s exports dropped by nearly 20% year-on-year. Among them, the old problem of exchange rate affects at least 5%-10% of them.
Data released by China Customs on the 8th showed that after the abnormal Spring Festival season from January to February, China’s import and export continued to be sluggish. Exports fell for the third consecutive month; imports fell for the seventh consecutive month, and fell at a double-digit rate for the fifth consecutive month; the recessionary trade surplus expanded significantly. This highlights the weakness in domestic and foreign demand in both directions.
The Chinese government has successively launched several long-term plans with good vision. However, from the perspective of front-line enterprises, opening up new growth points requires both top-level design and policy implementation.
Exchange rate issues make companies wary
The continued strength of the RMB exchange rate, the continued weakness of domestic and foreign demand, and the rigid increase in labor costs have made the old situation of China’s foreign trade unsustainable.
In May, my country’s total import and export value was 1.97 trillion yuan, a decrease of 9.7%. Among them, exports were 1.17 trillion yuan, down 2.8%, and the decline continued to narrow by 3.4 percentage points compared with April; imports were 803.33 billion yuan, down 18.1%; the trade surplus was 366.8 billion yuan, an expansion of 65%.
Yang Xiaochuan is the deputy manager of the sales company of Guangdong Zhongcheng Chemical Co., Ltd. of Liuhua Group. The company is the world’s largest insurance powder manufacturer and largest exporter of insurance powder.
He sent reporters a subscribed real-time exchange rate, showing the exchange rate of one U.S. dollar for the euro, Japanese yen, Canadian dollar, and rupee. This is the part that he has been most worried about this year. The currencies of major trading partners have depreciated significantly, especially the depreciation of the euro, which has had a huge impact on corporate exports: Europe’s share has decreased sharply, and the North American market has shrunk.
Now, this veteran foreign trade company has encountered a new problem: due to the continued weakening of China’s domestic economic growth and the weakening of domestic demand, many companies that originally only focused on the domestic market have also begun to increase their export efforts, focusing on low value-added products. low price competition in the Asian market.
After experiencing the global financial crisis and the European debt crisis, Liuhua’s market share in Europe and the United States has continued to shrink for many years. Its current share in Asia is 40%-50%. The above factors have led to fierce competition in Asia, and the company’s share in Asia has also declined. Start to drain.
Regarding the future, Yang Xiaochuan is a little pessimistic and feels that it would be great if the second half of the year can be the same as the first half. The annual decline will be roughly 10%-15%. Because the domestic and foreign demand for products is weakening, from an overall perspective, the competitiveness of China’s exports is declining, and its global share will naturally decrease. In addition to the exchange rate, the rigid increase in labor costs is also an important factor in this decline in competitiveness.
“The labor force in Myanmar is working hard to increase the minimum wage from US$4 per day to US$5 per day. What about the wages in China’s coastal areas? If the monthly income of workers in our factory is less than 6,000 yuan, it will be a big problem!” he said.
Another international salesperson from a listed home appliance company in Shunde, Guangdong, who did not want to be named, told this reporter that the data released by his company in the first quarter was not bad, but the main reason for this was not only the launch of new products, but also the Competitors went bankrupt. He reminded reporters that from the second half of 2014 to the present, news of the closure of companies in Shunde District has spread among peers.
The above-mentioned people also found that the weakening of the euro and weak demand have reduced the cargo freight on European routes to one-tenth of the peak.
The exchange rate issue may be difficult to resolve in the short term.
People familiar with the matter told reporters that this year’s exchange rate policy may continue to strengthen. The reason is that China is actively seeking RMB special drawing rights from the International Monetary Fund (IMF) to promote the internationalization of the RMB. “In this process, the strength of the RMB is very important.”
However, thanks to this A-share bull market, these companies have also benefited, which is also an unexpected gain.
Bai Ming, deputy director of the International Market Research Department of the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, told reporters that overall, the entire international market environment is not very good. Not only did China’s foreign trade fall, South Korea’s exports and imports also fell by 10.9% and 15.3% respectively. Under this circumstance, Vietnam’s foreign trade has a bright spot, with exports growing by 8% in the first four months. It is obvious that many of Vietnam’s export orders for labor-intensive products come from substitutions for China.
“If China’s economy is not confirmed to have bottomed out before the third quarter, it will be difficult for imports to turn positive for the whole year. There is still a chance for exports to turn positive for the whole year, but it is unrealistic to achieve the expected target of 6%.” He said.
The implementation of policies to promote foreign trade must be strengthened
For industry insiders such as Yang Xiaochuan, the golden period of export in their industry has gradually dissipated, and what they need to wait for is the next outlet.
Since the beginning of this year, various departments of the State Council have successively introduced policies to promote foreign trade. Following the introduction of trade facilitation measures by the Customs and Commodity Inspection and other departments, the State Council executive meeting also deployed and improved policies related to the import and export of consumer goods to enrich domestic consumers’ shopping options.
After several years of deliberation, the State Council issued the “”Several Opinions on Accelerating the Cultivation of New Advantages in Foreign Trade Competitiveness” clarifies that China will comprehensively improve the level of economic and trade cooperation with countries along the “Belt and Road”, promote the adjustment of foreign trade structure, create a legalized business landscape, and other aspects, and set the direction sexual judgment.
Bai Ming believes that the impact of Shanghai and other free trade zones, the China-South Korea Free Trade Agreement, the “One Belt and One Road” initiative, and tariff reductions on consumer goods are still taking shape. The transformation and upgrading of foreign trade is also underway, and new highlights such as high-speed rail and cross-border e-commerce cannot be ignored. “Mass entrepreneurship and innovation” will help optimize the structure of small and medium-sized foreign trade enterprises. Secondary innovation helps to more fully combine imported technology with independent research and development.
Generally speaking, it is to strive for the right to speak, initiative and leadership in the international division of labor. However, there is a direction but a difficult road.
For some people in the industry, many current trends, such as cross-border import e-commerce, may lead to a reduction in tax revenue. If they continue to develop in the long term, they will also bring some resistance.
According to Zhou Shijian, a researcher at the Center for Sino-U.S. Relations at Tsinghua University, there is still a lot of room for implementation of the current tariff reduction and exemption policies, and coordination needs to be strengthened. He said that the tariff reduction process of relevant departments is not done all at once, but is reduced year by year. By the time the policy is actually implemented, several years will have passed and it will not solve the immediate problem.

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