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    China'S Export Enterprises Are Plight &Nbsp, Upgrading And Pformation To Find A Way Out.

    2010/8/7 11:02:00 50

    Chinese Export Enterprises

    Zhu Hongren, chief engineer of the Ministry of industry and information technology, said that six major measures will be taken to promote economic restructuring, and again release the signal of the state to enhance the pformation and upgrading of its economic structure.

    It also points out the direction for many export enterprises struggling under pressure.


      

    RMB

    These seemingly unrelated events all point to China's foreign trade export enterprises, such as the reopening of exchange rate reform, the continuous spread of the wage increase trend, the adjustment of the national export tax rebate policy, the slowing down of global economic recovery and the rise of trade protectionism.

    With the outbreak of various factors, the cost order profit of enterprises has been impacted, and new challenges have arrived unexpectedly.


    Outbreak of multiple factors, "burn" export enterprises


    In June 19, 2010, the central bank announced the resumption of the reform.

    Since the reopening of the exchange rate reform, the renminbi has appreciated slightly against the US dollar in general.

    Recent industry tests show that many enterprises have limited bearing on the appreciation of the renminbi.

    Taking textile enterprises as an example, the average net profit rate of these enterprises is only 3%-5%. If the RMB appreciation is too great, the textile enterprises will suffer a heavy blow.


    In addition to coping with the pressure of RMB appreciation, the recruitment of enterprises is difficult and the rising cost of labor has become another challenge for enterprises.

    Since the early June, when Foxconn announced the salary increase of 30%-60%, a wave of rising wages has spread from the Pearl River Delta to the Yangtze River Delta and inland areas, sweeping many foundry enterprises.

    Subsequently, the minimum wage standards have been introduced everywhere, and the trend of raising salaries is the trend of the times.


    In addition, the Ministry of finance has cancelled export tax rebates for some commodities since July 15th this year, including some steel and non-ferrous metal processing materials, corn (information market) starch and some plastics and products.

    And RMB

    appreciation

    In contrast, the adjustment of export tax rebate policy has directly cut off the profits of some export enterprises, which is undoubtedly exacerbated by export enterprises.

    A sales manager of a Iron Trade Company in Beijing said: "(after the abolition of export tax rebate) sales volume is certainly not as good as before, and the lowest sales volume is estimated to be more than 10%."


    The domestic situation is not optimistic, and the international environment can not let export enterprises feel a glimmer of relief.

    As the global economic recovery slows down, trade protectionism also rises.

    According to statistics, in the first quarter of 2010, there were 19 global anti-dumping investigations, of which 9 were Chinese exports, accounting for 47% of the total, ranking the highest in the world.

    Of the 15 trade protection policies launched in 2010, 10 of China's commodities accounted for 67%.

    In addition, the EU, the United States, and France have put "carbon tariffs" in succession.

    system

    On the agenda, China's food, tire and other industries have also received a "warning" of carbon tariffs.

    The world bank and the Petersen Institute of the United States issued a research report recently, forecasting that once the carbon tariff is implemented, the export volume of China's manufacturing industry will be reduced by 1/5, and the export volume of all middle and low income countries will be cut by 8%.


    Responding to pressure, export enterprises are in action.


    Internal and external difficulties have become a true portrayal of export enterprises. Faced with heavy pressure, export enterprises have begun to act positively and break through many sides.


    For example, in terms of foreign exchange reform, enterprises' awareness and ability to avoid exchange rate risks have been increasing.

    According to a recent survey conducted by the Jiangsu Academy of Social Sciences, most enterprises reduce their exchange rate risks by using foreign exchange hedging tools rationally and adjusting production and operation means.


    Faced with the rise of domestic labor costs, some enterprises unwilling to raise salaries or unable to raise wages are also looking for a new way out.

    Moving factories to find a lower labor market seems to be a good choice.

    Foxconn chairman Chen Weiliang said Foxconn has been moving inland or even overseas for the past 18 months to find a lower labor force.

    Ying Da, a Hewlett-Packard Co's OEM notebook business, is preparing to speed up the move to the mainland. Its factory in Chongqing is expected to enter mass production in November.

    Earlier, the Hongkong Federation of industry conducted a survey of Hong Kong businessmen in the Pearl River Delta region.

    The result shows that 37.3% of the 8 Hong Kong enterprises in the Pearl River Delta are planning to move all or part of their production capacity away from the PRD, and more than 63% of enterprises are ready to move out of Guangdong.


    In addition, in order to reduce costs actively, many export enterprises also turn their attention to the domestic market and look for new profit growth points.

    Prior to the second Guangdong foreign investment enterprise product (domestic) Fair held in Houjie, Dongguan, many exhibitors were also interested in expanding the domestic market.


    However, export to domestic sales is not a smooth road.

    "Export to domestic sales, the construction of channels is the biggest obstacle," Zhou Dewen, President of Wenzhou Association of small and medium enterprises, said many difficulties in exporting to domestic enterprises.

    Self built sales channels have high cost and high risk. There is a high threshold for cooperation with shopping malls and supermarkets, and a lot of charges. If they want to take the road of network sales, they will have no experience or two talents.

    Wen Haibin, manager of Dongguan Houjie footwear alliance management department, said that in the past, foreign trade enterprises only needed to make products according to the requirements of foreign partners, and then they could receive payment by packing and shipping.

    Now domestic sales, product development, sales channels, terminals and other complex issues should be taken into account.

    The domestic market is so complicated that it is difficult to adapt to it.


    More experts believe that the adjustment of the national export tax rebate policy has released a signal that requires the pformation and upgrading of enterprises.

    Whether facing the foreign market or turning to domestic sales, upgrading and upgrading the products, making the brand bigger and stronger and increasing the added value of the products is the best way for the enterprises.

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