China'S Foreign Trade Still Faces Deep-Seated Problems.

Statistics released by the Chinese government on 10 may show that China's exports increased by nearly 50% in May, and the results were much better than expected.

However, economic analysts have warned that the growth will benefit from lower factors in the same period last year. At the same time, there are still some deep-seated problems in China's foreign trade, which should not be overly optimistic in the future.

Customs statistics show that China in May

It is worth noting that in the export commodities, electromechanical and labor

Zhang Xiaoji, a researcher at the Ministry of foreign economic development of the State Council Development Research Center, said that the resumption of export growth is still moving along the original path, and the task of adjusting the structure of export products is still facing great challenges.

He pointed out that from the specific

Tan Yaling, Dean of China Foreign Exchange Investment Research Institute, believes that traditional labor intensive products must pay attention to the issue of export efficiency, and can no longer be satisfied with small profits but quick turnover in the new background of raw materials, human resources costs and fierce competition in the international market.

Analysts pointed out that since May last year, China's export growth has been lower than the growth rate of imports.

The relatively low export growth is partly due to the decline in export prices, and the recent import prices are advancing by leaps and bounds.

Behind the low price of export products is the profit margins that enterprises have to lower in order to compete for market share.

According to statistics, the average sales profit of China's industry last year was only 5.47%, while in Dongguan, Guangdong, the most representative manufacturing industry in China, the profit margin of manufacturing industry was only 2.49%, and the gross profit margin of the entire OEM industry was between 5% and 11%.

Zhang Jie, Professor of the China economic reform and Development Research Institute of Renmin University of China, pointed out that in the case of mechanical and electrical products, which occupy a large part in exports, most Chinese enterprises are faced with the squeeze of the core technologies of pnational corporations and the sale of international buyers, thus making it difficult to continuously accumulate profits.

In April this year, Vice Minister of Commerce, Zijin Mountain, said that over the years, China's foreign trade development mode has paid more attention to quantity expansion, and the scale and quality benefits have not been coordinated enough development; the manufacturing and processing capacity of enterprises is strong, but the ability of independent innovation and marketing is weak; the quality, grade and added value of export products, the right to participate in the formulation of international rulemaking and the bargaining power of important commodity trade are still far from the trade powers.

According to customs statistics, in last year's top 200 enterprises of China's foreign trade and export, there were 80 enterprises with an export volume of US $1 billion, of which only a dozen domestic enterprises were employed. The largest domestic exporters, HUAWEI, last year exported 6 billion 990 million US dollars, ranking eighth in the list.

Analysts pointed out that the international competitiveness of China's independent export products still needs to be improved.

Zhang Jie believes that China's local enterprises do not rely on building their own brands to gain export advantage. On the contrary, over reliance on exports inhibits the willingness of local enterprises to build their own brands and innovative R & D to a certain extent, so that export enterprises can not jump to the high value-added link of the value chain.

Dr. Zhang Junsheng of the China WTO Research Institute of the University of foreign trade and economics pointed out that, in addition to exports, China also faces a number of unfavorable factors, such as iron ore and other commodity prices, which led to a significant increase in imports in the first 5 months of the year.

However, he pointed out that despite many external pressures, the Chinese government persisted in its strategy of promoting import and export balance, and adopted a series of measures, including increasing the degree of import trade facilitation, introducing zero tariff treatment to commodity imports from some less developed countries and regions, and made important contributions to the recovery of world economy.