The Daily Use Of Ceramics Has Already Died, And The Textile And Clothing Industry Is Also Ill Connected.

After 17 consecutive years of continuous growth, the Henan garment export industry has been in a comprehensive decline for the first time.

In July 14th, the Henan entry exit inspection and Quarantine Bureau released the first analysis report on clothing exports in the first half of the year.

According to the data released, in 2008 1~6, Henan exported 1092 garments, 12 million 900 thousand pieces, 44 million 700 thousand dollars, compared with the same period last year, batches, quantity and amount decreased by 2.24%, 15.24% and 12.28% respectively.

The situation of Henan's textile industry is only a microcosm of the whole export industry.

According to the statistics released by the former Customs General Administration, the total value of China's exports increased by 21.9% over the past 1~6 months, down 5.7 percentage points from last year.

June, which has always been regarded as the peak season for exports, has also hit second low this year, up 17.6% over the same period last year.

Behind the slowdown is the test of the pressure on enterprises to survive.

In particular, under the influence of many factors, such as the appreciation of RMB, the price rise of raw materials, and the rising cost of wages, some enterprises even reached the point of life and death.

　　利潤下降危及生存 　　

　　“現在我們陶瓷出口企業的日子越來越難過，目前日用陶瓷企業已死掉一半。”焦作市巨億陶瓷有限公司董事長盧師晶大倒苦水。

The disappearance of profits is causing these enterprises to be afraid of the orders they once longed for. "Some orders have been discharged into August, and enterprises have to push away some orders, because the current situation predicts that the larger the number of orders, the greater the losses will be."

According to Lu Shijing, there are two main reasons for this situation: first, the cost of raw materials, wages, energy and other production factors will rise; on the other hand, the appreciation of the renminbi will continue.

Compared with the "miserable" situation in the ceramic industry, the textile and garment industry, which has long been the top export commodity in China, is also suffering from the gradual loss of profits.

According to Liu Jie, general manager of Beijing copper cattle Limited by Share Ltd, "at present, the profits of enterprises are only 2%~4%."

Beijing copper bull Limited by Share Ltd, a subsidiary of bronze bull group, specializes in exporting knitted garments. Its export rate reaches over 80%, and its annual export volume reaches US $about 30000000.

According to the survey of China Textile Industry Association, in the first quarter of 2008, the average profit of 2/3 in textile industry was only 0.62% in 6 provinces and cities such as Jiangsu and Zhejiang.

A heavier pressure than sales profits falls is the loss of customers.

According to Liu Jie, some foreign clients who have worked with them for a long time may give up to continue to cooperate with them so as to choose the enterprises with lower cost in neighboring countries.

Faced with this predicament, as the head of the enterprise, Liu Jie has begun to find a way to deal with it: one side adjusts some product structure to the customers with the polar area, and makes up for the loss through the relatively high end products with relatively high profits. On the other hand, it expands the sales in the domestic market.

It is not just the situation of labor-intensive industries such as ceramics, textiles, electronic components, toys, furniture, etc.

"The gross profit margin this year has dropped by about 8% compared to the same period last year," a person in charge of an electronics company in Lianyungang said.

The responsible person explained that, because 85% of the products of the enterprise are mature products, prices and customers are relatively stable, it is difficult to pass on the increase of raw materials and labor costs to foreign businessmen through raising prices.

For this reason, the company has also tried many ways to increase revenue and reduce expenditure, but it still can not keep pace with the rising cost.

Liu Yuhui, director of the China economic evaluation center of the Chinese Academy of Social Sciences, said: "if these enterprises can not digest the pressure brought by rising costs as soon as possible, then we can only choose pformation, relocation or bankruptcy."

　　利好或將出臺 　

The crisis encountered by export enterprises has attracted high-level attention.

In July 14th, Vice Minister of Commerce Gao Hucheng said in an interview with the media, "in the first half of this year, some industries, especially the labor-intensive industries represented by textiles and clothing, now reflect the difficulties of export operation."

Gao Hucheng told the media that the Ministry of commerce is working with other departments to conduct research on export difficult industries, and will make timely policy recommendations according to the research situation.

In the past, rumors about the textile industry's export tax rebate will soon be adjusted.

The high-level statement of the Ministry of Commerce has made the whole export industry see the hope of policy adjustment.

Since July, Premier Wen Jiabao of the State Council has gone to Jiangsu and Shanghai. Xi Jinping, vice president of the state, has gone to Guangdong. Vice Premier Wang Qishan of the State Council has gone to Shandong. Chen Deming, Minister of Commerce, has launched an investigation into Wenzhou and other places. The dilemma of foreign trade enterprises is the focus of this series of research.

During his research in Wenzhou, Chen Deming, Minister of Commerce, urged Zhejiang enterprises to shake up their entrepreneurial spirit and create more value.

In response to the impact of exchange rate and export tax rebates on foreign trade enterprises mentioned by entrepreneurs, as well as concerns about macro portfolio regulation, Chen Deming said, "there will be no" bad news "on the policy level at present.

Huang Mengfu, chairman of the all China Federation of industry and commerce, appealed to the government and relevant departments to make positive efforts to improve the unfavorable situation of enterprises in the case of reducing the competitiveness of enterprises and reducing the profit margins.

He pointed out that the adverse effects of RMB appreciation and so on have brought great pressure to enterprises, especially the difficulties faced by SMEs.

At this time, the government should "water fish farming" to actively help small and medium-sized enterprises and growth enterprises to grow and expand.

On from July 6th to 8th, Li Keqiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and vice premier of the State Council, visited Wenzhou, Hangzhou and other places in Zhejiang.

The operation of export-oriented economy and the development of enterprises are the focus of his investigation.

He came to CHINT, France Group, Japan Feng company, Huafeng Group and other enterprises, and carefully understood product sales, production costs, capital conditions and so on.

All of these will provide valuable information for the central economic situation analysis conference to be held this week.

Industry observers believe that the conference on the direction of macroeconomic policy in the second half of this year will not change the tone of the current macroeconomic regulation, but policies on some sectors will be adjusted.

According to foreign reports, last week, the State Council requested the Ministry of Commerce to report on its foreign trade situation in the first half of this year and put forward policy proposals, according to official sources.

The Ministry of Commerce said in its proposal that export enterprises need more time to make adjustments, otherwise many enterprises will be closed down.

　　升級不可逆轉

In July 4th, when studying the foreign trade situation in Shandong, Wang Qishan, member of the Political Bureau of the CPC Central Committee and vice premier of the State Council, pointed out at the Forum on the foreign trade situation that the extensive development mode of foreign trade was difficult to continue in the past. We must solve the immediate difficulties in terms of structure, mode and quality, and enhance the efficiency and competitiveness of enterprises.

The more difficult it is, the more unified the government and enterprises are to understand, to see the favorable conditions and the potential for development, and to firmly overcome the confidence in overcoming difficulties.

"From the survey of senior officials, we can understand that policies should be based on the international and domestic situation."

Zhou Dewen, President of the Wenzhou small and Medium Enterprises Development Promotion Association, which has participated in many national high-level research and discussion activities, has expressed a bit of expectation for the future policy while expressing the understanding of the decision making layer. "But now we have been victorious, and we need to increase our innovation strength, become bigger and stronger, and take the high-end line so as to be truly invincible."

Sun Fei, director of Wantong investment bank's director, has similar views. In his view, when the RMB continues to appreciate, the export oriented SMEs are hit harder.

But it is not realistic to rely solely on government help. Enterprises should do more self-help work.

For example, mergers and acquisitions, some small and medium-sized export enterprises with weak risk tolerance are merged into a larger and stronger risk resisting enterprise. This is a way to deal with them.

If enterprises have enough funds, they can seek industrial upgrading. If funds are insufficient, they can seek credit support or equity financing.

In short, enterprises must actively seek ways of self adjustment and strive to get rid of difficulties first.

"In the current situation, some export enterprises with low risk tolerance will surely face survival difficulties."

Yao Zhizhong, deputy director of the International Trade Research Institute of the Institute of world economics and politics of the Chinese Academy of Social Sciences, believes that at present, foreign trade faces two shocks: the impact of external demand and the rising cost of domestic labor.

In his view, this is a structural shock.

The most influential factor is the labor intensive industry in China, because the labor cost of the industry is higher than the total cost.

But he also believes that this structural adjustment is an inevitable choice for us to achieve industrial upgrading in these areas.

Yao Zhizhong believes that "these enterprises with poor risk tolerance are eliminated in competition, which can be regarded as the inevitable result of market choice."

Zhang Yansheng, director of the Foreign Economic Research Institute of the national development and Reform Commission, said, "the next step will be a great change in the way China used to participate in international division of labor with low cost.

China should continuously improve the quality of human capital, increase the value-added capability of products and the technological content of products, and truly enhance China's position and role in the global production network.

"This also means that there will be fundamental changes in the relationship between China's economy and the world economy in the next 20 years."