Exchange Rate Disputes Affect The Nerves Of China'S Textile Foreign Trade Enterprises

There are many indications that the RMB exchange rate is still affecting the sensitive nerves of export enterprises.

Statistics of the 107th Canton Fair, known as "barometer" and "wind vane" of China's foreign trade, were issued, and the two phase of export was $8 billion 460 million, representing a 106 increase of 2.1% over the same period.

The cumulative export volume of the first two phases was $25 billion 560 million, up only 7.1% from the same period last year.

Chen Zhaoren, deputy director of the Guangzhou Trade Fair press spokesman and foreign trade center, said that the two stage exhibitors generally reflected that the desire for purchasing by the emerging market buyers increased significantly, and the prospects for the recovery of the international market were good. "They are also worried about the RMB exchange rate, the sustainability of the relevant national policies and the rising cost," he said.

Exchange rate

"From the practical operation of enterprises, this" recovery "depends on the background of the global market turning better, but it is also inseparable from China's foreign trade policy, especially the stability of the RMB exchange rate.

Mr. Li, chairman of Ningbo Meijia Tools Co., Ltd., attended the 107th Canton Fair.

As for the manager of Jiangsu Yancheng Xin Qi Electronics Co., Ltd, he is always concerned about the change of the RMB exchange rate.

His company mainly produces neon billboards and neon lights, 98% of which are exported to European and American countries.

"If the renminbi appreciates, our exports will become more expensive and the competitive advantage in the foreign market will be weakened."

He said.

The appreciation of the renminbi is even related to the survival of many enterprises.

Chen Shujin, vice president of the China Textile Industry Association, said earlier that the profit margin of China's textile industry is only about 4%. The appreciation of the renminbi will cause a large number of textile exporters to go bankrupt, and the enterprises will not be able to bear it.

According to Gao Yong, vice president of the China Textile Industry Association, in general, there may be thousands of workers losing their jobs for every reduction of US $100 million. If the RMB continues to appreciate, the textile enterprises' ability to bear may be lower and lower.

"Maintaining exchange rate stability is the most important thing at the moment."

The director of Chongqing Lifang Industrial Group Import and Export Co., Ltd. told the newspaper reporter that the most reluctant thing for Lifan is exchange rate change. "If the renminbi appreciates, the final victim is the consumer".

It is understood that this year, the Canton Fair has increased by a single list, but the enterprises are afraid to sign the long list because of the uncertainty of the RMB exchange rate and the cost of raw materials.

One day commodity company in Guangdong signed a one year supply agreement with overseas large supermarkets, but added an additional agreement - that is, if the RMB exchange rate or raw material cost changes more than 5%, that is, re quote.

Be prepared at all times.

For a long time, some western countries have been accusing the RMB exchange rate of being "seriously underestimated", thus giving China an unfair competitive advantage in international trade, resulting in a huge deficit in trade with China.

The pressure of RMB appreciation suddenly increased in the first quarter of this year.

Recently, the United States has the strongest voice in the appreciation of the RMB exchange rate.

In March 15th, more than 130 members of the United States Congress proposed in Washington that when the Obama Administration issued a periodic report on currency manipulation next month, China would be listed as one of the manipulators of currency manipulation. At the same time, it also called for a countervailing duty on Chinese products exported to the United States.

However, for the problem of exchange rate, enterprises can only deal with it by preparing ahead of schedule.

"We can still accept small fluctuations in the renminbi, because most of our enterprises are short term orders."

Zhang Peng, chairman of Yantai Watson Steel Manufacturing Co., Ltd., told reporters that "we have considered the use of forward selling, foreign exchange and other banking businesses to avoid risks."

Another view is that the appreciation of the renminbi will promote the upgrading of the industrial structure of enterprises.

Han Linghui, a Finance Research Institute of the Ministry of finance, said earlier that the appreciation of the renminbi would have a negative impact on the micro economy, especially on the international competitiveness of the export products based on primary manufacturing, but from a macroeconomic point of view, it is conducive to enhancing the role and flexibility of macroeconomic policy, especially monetary policy.

"At present, there are obvious signs of overcapacity in the domestic primary manufacturing industry, and a moderate appreciation of the renminbi will play a greater role in promoting structural adjustment."

It is also a common strategy for enterprises to adjust the ratio of domestic sales to export and to develop new overseas markets.

"Lifan's products are exported to more than 160 countries and regions. Even if the key export markets are somewhat weak, other markets will effectively help enterprises to maintain or even increase their share of exports."

Tang Daofu said.

In Zhang Peng's plan, the proportion of Watson's domestic and foreign trade is 40% and 60%. "The East is not bright, the west is bright."

He said with a smile.