Exchange Rate Fluctuations &Nbsp; Yangtze River Delta Shoe Enterprises Plan To Transform

October 15th, October 14th. RMB The median price against the US dollar reached 6.6582 yuan, which again hit a new high since 2005. At 8.11 of the remittance. exchange rate The total appreciation of RMB has reached 17.90% since the reform.

Around the exchange rate issue, China is one of the global manufacturing bases. Changjiang Delta Enterprises in the region have been dancing for a new round of changes.

Since October 12th, journalists have visited nearly 30 export-oriented manufacturing enterprises in Shanghai, Zhejiang and other places. Among them, there are 12 electromechanical technology enterprises and 28 traditional manufacturing enterprises.

Surprisingly, these enterprises are not sensitive to the appreciation of RMB three years ago. As time goes by, their predicament has not only stayed on the face of exchange rate.

High and new technology: "fire" before the bulwark

"You see, our factory area, more than 40 thousand square meters of area, normal production, annual production capacity of about 1000000000 yuan is absolutely no problem." Gao Shaohua is the chairman and general manager of Zhejiang three Mongolia Electric Technology Co. Ltd.

However, less than half of the high plants are under construction.

The market of high Shaohua enterprises is directly in the "storm eye" of RMB and US dollar. With the approaching of the mid-term elections in the US Congress, the US heated debate about the RMB exchange rate has been almost boiling.

However, what troubles us most is the recent US trade war against him in this field. "Compared with these successive lawsuits, the risk of exchange rate has not been taken into consideration." For him, besides the risk of RMB appreciation, Sino US trade war drums in other fields have also been ringing.

In August 11th, US President Obama signed the law on the promotion of manufacturing, aiming to regain the competitiveness of the manufacturing industry in the United States and increase employment.

Gao Shaohua's main products, GFCI series, are almost sold in the US market. According to previous market conditions, the annual sales volume of these products in the United States is about 4 billion dollars. Its products entered the US market in 2003, and at that time, it was rapidly expanding with the low cost of Chinese characteristics, and orders poured in.

"Over the past three years, profits have been getting lower and lower. Especially after the crisis, Americans find more trouble." But he shows that he will deal with it.

First of all, after the crisis, the US economy did not become active, and the profits and orders of enterprises were in a downward trend. In addition, the appreciation of the renminbi relative to the US dollar is difficult for us Sellers to accept once the Chinese manufacturers raise their prices accordingly. "Although there are profits now, we earn a lot less." High sigh.

The appreciation of the renminbi can not be regarded as one of the conditions for domestic producers to negotiate prices. "Unlike traditional manufacturing, we can't make money after adjusting." High sigh.

Gao Shaohua's killer is that he owns a research and development team, and the main price is attached to the patent value of the series products, and the development cost of each patent is above 800 thousand yuan.

What is optimistic is that although China's labor market has risen roughly from 20 yuan per hour to 70 to 90 yuan per hour, compared with 7 years ago, it still has market competitiveness compared with the US $100 per hour.

"Old beauty is not willing to be reconciled, so it led to a series of Car Wars this year. A company sued us for winning the lawsuit, less than half a month, and another case. " There are 5 Chinese companies involved in the wheel wars. Gao Shaohua said, "this is a deadly barrier."

"This is not the problem that the enterprise can solve itself. At the critical moment, it needs the strength of the state." Zhou Dewen, vice president of China SME Promotion Association, said. {page_break}

Global monetary anchor shift

"There's still 2 million yuan on hand. I really don't understand how to invest." During the national day, Wang Ming paid the first phase for a four room two hall house in Jiaojiang District of Taizhou. After the holiday, with the introduction of the policy of real estate purchase restriction in Shanghai and other regions, rumors about property tax began to surge. Wang Ming was also puzzled. "How can we increase the value of our spare money?"

Rising agricultural and sideline products, rising raw materials and artificial wages. They are sniping at Wang Ming's money. At the same time, Wang's main business has stagnated. "2 million, if we put the bank again, the interest rate at that low rate will shrink soon." He was very upset. Wang Ming originally set up a shoe fitting factory with a capacity of about 1 million yuan in Wenling, which provided ingredients for a casual shoe in the same industrial area. But because of the decrease in upstream orders, his factory had no choice but to go out of business. "The profit is too low, and the power supply restriction is serious recently. If we go on like this, we will have no future." The king said. Although investment in gold and stocks has made money, this is just speculation for Wang Ming, not a major investment direction. He seems to be a bit anxious.

Wang Ming is one of the two business owners of the 30 enterprises surveyed by reporters, but it is not an isolated phenomenon. After the financial crisis, he started work only during the Spring Festival this year.

During that time, Zhejiang manufacturing enterprises showed signs of spring after the crisis. Tian Ning, President of Zhejiang Panshi Information Technology Co., Ltd. recalls that during this period, the growth of the company's simple customers increased by 140% over the same period last year. But the long run, the sharp rise in production costs, and the weakening of international price competitiveness caused by the appreciation of the renminbi make many business owners struggling.

An official of the financial supervision department of Zhejiang believes that before the appreciation of the RMB, the central government made a series of policy controls on housing prices, which is aimed at curbing speculation in the property market to prevent international hot money from returning to China to push up housing prices. "From the present situation, the appreciation of the renminbi has a great impact on the low end manufacturing industry and indirectly affects employment. Then, it will increase the trade deficit and adversely affect the assets such as treasury bonds and foreign exchange reserves held by China, and directly introduce imported inflation."

Reporter survey found that a method known as "global monetary anchor drift" is used to deal with the general trend of RMB appreciation. For example, in the process of receiving orders, manufacturers negotiate the risk of exchange rate increase with sellers to negotiate a mutually agreed locking interval.

In addition, compared with the previous foreign trade orders, the US dollar valuation is basically adopted. Some enterprises also abandon the settlement of the US dollar according to the difference of the order area, and choose another relatively stable currency as the pricing unit.

Some business owners also formed a response. A higher level of technological content is required for enterprises to survive or develop. Wenzhou's Sun Fung lighter products withdrew from the European Union and the United States and moved to Japan and other countries and regions. In Japan, for example, the growth rate is around 20%.