RMB Continues To Appreciate. Hainan'S Foreign Trade Enterprises Are Under Heavy Burden.

RMB breaking eight, breaking seven...

Every appreciation of the renminbi has led to a depressed mood and pressure on a company specializing in Pepper export trade in Qionghai.

Last year, the small foreign trade company, which exports only US $3 million, caused the exchange loss of 1 million yuan due to the appreciation of the renminbi.

"This is just a pressure on one side."

Provincial Commerce Department planning finance division official told reporters that since this year, due to the export tax rebate reduction, raw material prices, labor costs soaring, weak international demand and other unfavorable factors concentrated outbreak, our province's export enterprises are facing severe test.

Six pressures aggravate difficulties

For the export enterprises in our province, the past year has not been easy.

In the face of continued appreciation of the renminbi, rising bank interest rates, labor prices and raw material prices, we also face the drawback of the export tax rebate rate and the weak demand in the international market.

In the second half of last year, China substantially reduced the export rebate rate of 2268 commodities, including the traditional main export commodities in our province.

Such as organic chemicals, clothing, plastics and products, wood and wood products were reduced by 5% to 10%.

Affected by this policy, the export of organic chemicals decreased by nearly 40% in the first half of May this year, and exports of wood and wood products dropped by nearly 8% compared with the same period last year.

Export of wood products to Waterloo

In the export of local products, there have been two days of ice and wood products.

"In the past few years, these two kinds of products almost developed at the same time. At that time, they considered the potential to be enormous."

According to the responsible person of the Provincial Department of Commerce, the two export products that made use of Hainan rubber wood and sea water products were once the most potential products, and the export of the two categories of products reached tens of millions of dollars at the peak.

But wood products have encountered cold currents again and again.

The first is the supply of raw materials.

A company responsible for the export of wood products complained that it was because of the rich rubber tree resources in Hainan that they invested in Hainan.

At that time, the demand for wood products with unique patterns was very high in the international market.

However, due to the bidding of local raw materials, enterprises will have to pport raw materials at high prices from outside the island, and the competitiveness will certainly be greatly reduced.

In May of this year, exports of wood and wood products were only $5 million 830 thousand, down nearly 30% from the same period last year.

"The export of wood products is the real Waterloo."

The responsible person of the Department of Finance and Commerce of the Provincial Department of Commerce believes that the subsequent anti-dumping investigations by the United States on wooden products in China, and the export tax rebate rate for such products reduced by last year, directly led to the shrinkage of wood products exports.

Now, some enterprises have stopped production, or sporadic production of some accessories.

Growth of seawater products

The export of marine products is much more luckier and more successful.

Despite the fact that anti-dumping investigations have also been encountered, the impact is not large; in the last year's export tax rebate rate adjustment, no such products were included.

In the first half of May this year, the export of sea water products exceeded US $130 million, an increase of more than 20% over the same period last year.

"Exports of wood products and sea products are up and down, which is worth summarizing."

The director of the Department of Finance and Commerce of the Provincial Department of Commerce believes that the seawater products still maintain strong growth under unfavorable conditions. On the one hand, the demand for tilapia and Penaeus vannamei products is strong in the international market. On the one hand, the export enterprises of seawater products in our province have developed their own breeding base and have grasped the initiative in raw materials through the development of these years.

The head of a marine product export enterprise in Haikou believes that the key to increase export of sea water products is that enterprises have established their own breeding bases, to a certain extent, to defuse the risk of raw material prices.

The provincial commerce department suggested that aquaculture processing should be supported as a key export industry.

According to statistics, the total output of water and seafood products reached 1 million 320 thousand tons last year, but the export volume was only 105 thousand tons.

The main exports of tilapia and Penaeus vannamei were 250 thousand tons and 100 thousand tons respectively, but the export volume accounted for only about 1/4.

Targeting emerging market demand

How to dissolve the risks and keep the export of foreign trade growth continuously? The new international market has become a new choice for some foreign trade enterprises in our province.

Canton Fair is known as "China's foreign trade vane".

In the first half of this year's Canton Fair, the number of buyers and traders of the traditional Canton Fair purchasers in the US, Europe, Japan, Korea and Taiwan, China has declined significantly, while the emerging markets such as the Middle East, ASEAN, Russia and India have continued to increase their willingness to buy "made in China".

The export data of our province also reflect this trend.

In the first half of May this year, our province's exports to the US market dropped by nearly 7%, while the volume of exports to Japan increased by less than 5%.

"We are also actively pursuing the Central Asian and Far East market."

The director of the foreign trade department of the Provincial Department of Commerce said that Hainan's tropical agricultural and sideline products have strong complementarity with these markets, but we do not have the advantage of ASEAN, which is also rich in tropical agricultural and sideline products.

In a recent symposium of small and medium-sized foreign trade enterprises held by the Provincial Department of Commerce, enterprises also showed strong interest in the market.

It is hoped that the government can enhance sales promotion in these areas and help enterprises to import more tropical agricultural and sideline products from Hainan into these emerging markets.

Data from the inspection and quarantine department show that Russia's emerging market has now become the fourth largest exporter of agricultural products in our province.