The Euro Depreciated By Nearly 15%&Nbsp, And China Made A Lot Of Injuries.

Zhou Xufeng, a Chinese businessman who opened a knitwear trading company in Spain, once worried about the possible appreciation of the yuan dollar for the people every day. As a result, the yuan did not move, but the euro suddenly plunged. The steady business became unprofitable overnight.

In June 2nd, the central parity rate of the euro against the RMB was 8.3528. This year, the depreciation rate of the euro against the RMB has reached nearly 15%.

Zhou Xufeng, who is also the president of the China Youth Chamber of Commerce in Spain, said that in the month of 1~5 this year, their export business to Spain amounted to 70 million yuan, which would have a profit of about 30% at ordinary times.

Just as anxious and helpless as Zhou Xufeng, there are nearly 150 thousand Chinese businessmen in Spain.

　　 statistical data "Fight"

In a recent interview with reporters, Zhou Xufeng said Spain is a country with more immigrants. Since the outbreak of the debt crisis in the euro area, the unemployment rate in the country has been very high. The government has turned the domestic contradictions into the trend of foreign immigrants. Chinese businessmen have learned from local officials that the government is preparing to make full efforts to check Chinese businessmen, and intends to impose an additional tax of 200 million euros on Chinese businesses on the basis of the original tax revenue.

"When a standard box was used for customs clearance, it would only cost US $40 thousand, and at least 100 thousand dollars now." Zhou said.

The European Union is one of the main export markets in Zhejiang, and the debt crisis in the euro zone is spreading rapidly. Zhejiang enterprises bear the brunt. A report released by the Zhejiang Statistical Bureau said that international commodity prices and major currencies could increase volatility and trade protection increased significantly, which will have a greater impact on Zhejiang's industrial exports.

According to the report, from the turnover of the Canton Fair this year, compared with the same period of last year, the number of European buyers of Zhejiang's export enterprises dropped by nearly 18%, and the number of purchasers in the EU region dropped by nearly 1/4, and the actual export volume of the EU market also showed an overall downward trend.

Zhang Handong, director of the Zhejiang provincial chamber of Commerce's foreign trade research center, told reporters that in the 1~4 months of this year, Zhejiang's exports increased by nearly 32% compared with the same period last year, and exports to European countries increased by about 31% compared with the same period last year. Only from the statistical data, the depreciation of the euro has little effect, but many export enterprises still complain incessantly. One of the reasons for this contradiction may be that Greece, the most serious crisis, is not the key export market of Zhejiang enterprises. Spain, which exports the top 20, will only account for 2.15% of the total export volume of Zhejiang.

Ningbo is a major export trade in Zhejiang. Last year, Ningbo exported about 11 billion 400 million US dollars to the European Union, accounting for nearly 30% of the total export volume of the city. The main commodities exported to Ningbo were garments and accessories, textile yarns, fabrics and products, ships, lamps and lanterns.

According to Yu Danhua, director of the Ningbo Municipal Bureau of foreign trade and economic cooperation, because Ningbo export enterprises generally use US dollar settlement or forward settlement, and the market is dominated by Germany and France, the direct impact on the depreciation of the euro is not large at present, and the market share can also be guaranteed. The profit loss is not large. But considering the depreciation of the euro, it is difficult to get orders from EU customers in the future, and the prospect is not optimistic.

Weakening export competitiveness

Compared with the traditional export products of low price, including high value added products such as photovoltaic cells and mechanical and electrical products, it has accounted for a large proportion of trade among European countries, but its export situation is not satisfactory.

According to Luo Yi, director of investor relations at Wuxi Suntech Solar Power Co., Ltd., about 70% of Wuxi's Suntech exports to Europe. In the first quarter of this year, Wuxi Suntech lost about 25 million dollars due to depreciation of the euro, and the loss of another Atlas of photovoltaic enterprises was also up to 18 million US dollars. It is estimated that because of exchange rate losses, domestic PV companies may lose billions of dollars in revenue.

Shanghai electromechanical traders Hong Shu told reporters that 1~5 months this year, they made a total of Germany A $5 million euro was issued, despite the fact that the advance payment was guaranteed, and the late settlement settled on the euro instead of the US dollar, but there was a 5% exchange rate loss.

Guo Shixian, manager of the business development department of Sanxin international electric appliances (Shanghai) Co., said that a month ago they felt the pressure of RMB appreciation on the euro. At that time, some contracts that were being fulfilled had actually been lost if they were settled according to the original exchange rate.

Wang Guiqing, vice president of China Chamber of Commerce for import and export of mechanical and electrical products, admitted that many Chinese companies suffered huge losses as the euro depreciated more than 14.5% against the renminbi in the first 5 months of this year.

Many electric suppliers reflect that Chinese exporters of mechanical and electrical products often compete internally. Overseas merchants generally do not accept the demand for raising prices. Chinese exporters only continue to fulfill their contracts and hope to make up the difference in the next order contract. Therefore, although the number of orders continues to grow, the profits of mechanical and electrical export enterprises are decreasing. If the euro continues to remain weak, and the RMB will remain stable against the US dollar, the appreciation of the RMB against the euro will significantly reduce the price competitiveness of China's exports to Europe.

Wang Guiqing said that by the impact of large raw materials and labor prices this year, the overall cost of electromechanical exporters has increased by at least 10%. However, the growth of export transaction price has not been able to catch up with the growth of costs when the external demand is still not stable.

The next half a year is more dangerous?

At present, the euro zone debt crisis has spread further in the five countries of the Mediterranean (Greece, Italy, Spain, France and Monaco). According to the data released by the European Union Statistics Bureau in June 1st, the unemployment rate in the euro zone rose to 10.1% in April from 10% in March, the highest since August 1998. Of all the EU member states that provide data, Spain has the highest unemployment rate of nearly 20%.

A copy issued by Ernst & Young in June 2nd investigation The report points out that the economic recovery in the euro area will slow down due to the drag on Greece's sovereign debt crisis and its subsequent consequences. Ernst & amp; young predicted that the euro area's economic growth rate in 2010 was 1%, up to 1.6% in 2011. The average annual growth rate of Germany, France, Hollywood, Belgium and the five countries in the next 3 years can reach 1.8%, but the average annual growth rate of the Mediterranean countries is only 0.6% during the same period. More than 17 million people will lose their jobs in the entire euro area to the first half of 2011. The euro area economy needs an annual growth rate of 1.5% to 2% to support production and employment returning to pre crisis levels.

Recently, an interview with reporters in charge of the Department of economics, CLSA, said that 20% of China's exports were oriented towards Europe, and the current euro continued to decline. This will make China's economy and the whole Asian economy in the next 1 to 2 years be affected.

Fei Siwei said that under normal circumstances, the euro fell by 1%, China's exports to the EU would be reduced by 0.65%, while the GDP in the euro area decreased by 1%, and China's exports decreased by about 6%. From December 2009 to now, the export volume of China to the European Union is estimated to be about 13%.

Huo Jianguo, President of the international trade and Economic Research Institute of the Ministry of Commerce recently also said that the European sovereign debt crisis is expected to respond more significantly in the months of 5~6 and the third quarter, and that China's export growth to Europe may decline by 6%~7%.

In view of the impact of the depreciation of the euro on foreign trade, Yu Danhua, director of the Ningbo Municipal Bureau of foreign trade and economic cooperation, suggested that foreign trade and economic cooperation enterprises should improve their bargaining power with European merchants. Through exchange rate locking, finding out commodity quotas, insuring export credit risks, rating credit for clients and issuing accounts receivable management measures, efforts should be made to control operational risks and strive to keep European merchants under the premise of making less profits.

"At the same time, enterprises should strive to shorten sales channels, reduce intermediate links, and strive to trade directly with the EU terminal merchants." Yu Danhua said.