The Situation Of Foreign Trade Is Complicated, And Shoe Companies Are Involved In The Canton Fair.

October 9th,

The 108th Canton Fair will be opened in October 15th. Many companies that have decided to participate in the Canton fair said in an interview with reporters that they were afraid of high expectations for the meeting because of worries about the appreciation of the renminbi and other foreign trade factors. The past Canton Fair will strive for orders, but at the moment, orders companies may not dare to take them.

The "barometer" of the foreign trade fair has not yet been held, but

The appreciation of the renminbi in September has hit the lifeblood of foreign trade enterprises.

The yuan rose 1.74% against the dollar this month, the biggest monthly gain since 2005.

Many foreign trade enterprises told reporters that profits were almost offset by the appreciation of the renminbi.

Under such circumstances, the top of the Ministry of Commerce recently pointed out the expectation of "cautious treatment of the resumption of foreign trade growth" on different occasions, emphasizing the impact of uncertainties.

Data is not optimistic.

In August, the situation of foreign trade was not bad.

According to customs statistics, from 1 to August this year, China

But this time, the pressure on the trade surplus has been revealed in the data.

The total foreign trade volume accounts for 1/4 in the whole country, leading other provinces and cities in Guangdong, and the impact of foreign trade has also appeared.

According to the data of Guangdong foreign trade and Economic Cooperation Department, from January to August, the total value of Guangdong's import and export trade reached 485 billion 590 million US dollars, up 32.5% over the same period last year.

Among them, exports amounted to 278 billion 140 million US dollars, an increase of 28.6%, and imports of US $207 billion 450 million, an increase of 38.1%.

According to this data, the total value of imports and exports in Guangdong in August was 71 billion 660 million US dollars, an increase of 4.2% compared with the same month last year. Compared with the same month last year, the total value of imports and exports of Guangdong was 53 billion 640 million US dollars, representing an increase of only 33.5% compared with the same period last year, still below the national growth rate.

In fact, although the foreign trade data of September have not yet been released, this month seems to be a turning point in this year's foreign trade.

According to official data released in October 1st, the purchasing managers' index (PMI) of China's manufacturing industry in September 2010 was 53.8%, up 2.1 percentage points from last month.

Overall, the manufacturing sector is expanding economically.

However, while other indices rose rapidly, the new export orders index remained stable.

It rose by only 0.6 percentage points compared to last month, and in August the index increased by 2.2 percentage points.

More noteworthy is the peripheral economic data. In September, the euro area Manufacturing Purchasing Managers Index unexpectedly dropped sharply, from 55.1 last month to 53.6, and fell to its lowest level in nearly 8 months.

In September, the US ISM Manufacturing Purchasing Managers Index fell to 54.4, or even lower than economists expected.

Commerce ministry officials also said that the endogenous driving force of world economic growth is still insufficient, and the recovery of emerging markets is faster than that of developed countries. The fiscal tightening policies adopted by some countries have affected investment and consumption.

Under such a complicated situation of foreign trade, the Department of foreign trade and economic cooperation of Guangdong province also tends to be conservative in its growth rate.

Deputy director Zheng Jianrong said that the total import and export volume of Guangdong in 2010 was expected to increase by about 20%.

This expectation is much lower than the actual data of Guangdong's foreign trade growth in the first 8 months.

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Enterprise mentality complex

The dark clouds, such as RMB appreciation, rising raw materials, shortage of labor and uncertainty in the peripheral economy, are hanging over the foreign trade enterprises. The 108th Canton Fair is held at this juncture.

Uncertain factors muddle up the pool of foreign trade. Most of the foreign trade enterprises tend to be conservative, and some of them tend to be pessimistic.

The owner of a garment foreign trade enterprise in Dongguan said, "raw materials have gone up sharply this year, and 224851275.00,6.01% has not been able to get enough money recently."

In his view, the way to deal with it is only silently accepted, so do not intend to participate in the Canton Fair.

A company that produces generators in Taizhou, Zhejiang, which is about to take part in the Canton Fair, has also reduced its booth, which has been reduced from four standard booths last year to two now.

"Although the effect of the last order is not good, we still want to communicate with our customers."

Chen Weidong of the company said.

According to the official data released by the Canton Fair, the exhibitors' enthusiasm for China's export enterprises in this Canton Fair declined, and the number of applications for exhibition was reduced.

The number of applications for last year's enterprise booths is 115 thousand, while the number of applications for this enterprise booth is only 98 thousand, reducing the application booth to 17 thousand.

AI Han Qiang, the manager of the International Trade Department of Wenzhou Zhuo Sen Shoes Co., Ltd., did not rush to the order. "To see old customers, we need no orders."

He said.

Although no shortage of orders, Zhuo Sen shoes industry is missing another important factor -- workers.

Many factors such as the appreciation of RMB and the rising of raw materials have made many enterprises lose profits, which is an important reason for the cold watch of the Canton Fair.

"Many foreign shoe enterprises only have profits from 1.5 to 2 yuan. In September, the appreciation of RMB made profits rise, making contributions to European and American countries."

AI Han Qiang said.

In Ai Hanqiang's view, many small foreign trade enterprises have been very difficult.

In fact, the boss of the above garment enterprises interviewed by our reporter has already been very difficult. He asserted that if the renminbi appreciated again, there would be many enterprises going bankrupt in Dongguan.

Although the order has not become a burden on most enterprises, the appreciation of RMB will increase the purchasing cost of overseas consumers, and the uncertainty of orders will also increase.

Chen Weidong is an ordinary salesman of the above foreign trade enterprises in Taizhou. The Canton Fair has only been convened for a week. He is already trying to figure out how to raise the price with the clients.

"Many customers are trying to keep prices down. Now we have to raise prices, which is very difficult to talk about."

Chen Weidong hopes to place more orders at the Canton Fair, but the situation is very difficult for him now.

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MOFCOM urged pformation

AI Han believes that the best way for foreign trade enterprises to adopt long-term lock in measures is to avoid exchange rate risk, but such measures are only applicable to enterprises with stronger strength.

From a global perspective, this is only an expedient measure.

Chen Deming, Minister of Commerce, recently published a signed article saying that in the face of the new situation, we should strengthen global strategic planning and create a more favorable external environment, changing from "participants" to "makers" of international economic and trade rules.

Chen Deming is also rushing to this end.

When Premier Wen Jiabao attended the UN conference in New York, Chen Deming held talks with us commerce secretary Luo Jiahui to discuss serious Sino US trade issues.

In October 4th, Chen Deming accompanied Premier Wen Jiabao at the ASEM summit and the thirteenth China EU leaders' meeting, and met with Teguh Hurt, the Trade Commissioner of the European Commission, exchanging views on trade protectionism and other aspects.

Chen Deming's signature article at this time has its deep meaning. He put the upgrading and pformation of enterprises in the most important position.

"Encourage our import and export enterprises to upgrade to both sides of the smile curve, and support enterprises to rent brands, buy brands and create brands according to their own strength."

He said.

Ministry of Commerce officials also said that in the case of increased uncertainty, enterprises also accelerate the pace of pformation.

In the recent Canton Fair, officials have vigorously promoted foreign trade to domestic sales, but the pformation is mostly difficult.

This reporter found that in the mainland most exhibitors Canton cold trade to domestic sales, overseas enterprises are expanding the domestic market through the Canton Fair. The US Water King International Limited has increased a standard booth in the current Canton Fair than the previous one. Miss Chen, who is stationed in Hongkong, China, said: "bullish the mainland market and add a booth to expand the sales market."

The owners of the above garment enterprises in Dongguan think that they have missed the opportunity to pform themselves into domestic sales. "The best way to survive now is to pfer to Southeast Asian countries. Many enterprises have such an idea."

He said.

"We must seize the opportunity to pform, and we will have no opportunity to occupy the market."

Jiang Lin, Professor of South of the Five Ridges College of Zhongshan University, said.

In the financial crisis, domestic sales had become a life-saving straw for the earlier pformation of foreign trade enterprises.

Pressure on foreign trade enterprises to accelerate pformation has become the only way out.