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    Footwear Export Volume And Price Rise, Four Factors Restricting Export Growth

    2011/3/31 10:54:00 78

    Footwear Export Factors

    according to

    Customs

    Statistics, Fujian, January 2011

    Exit

    260 million pairs of shoes, an increase of 15.7% over the same period last year (value 1 billion 20 million).

    dollar

    The increase is 45.1%.

    The main features of its exports are:


      

    First, the monthly export volume is high.

    Last January,

    Fujian

    Provincial footwear exports for the first time

    Breach

    The 200 million pairs reached 230 million pairs, and the export volume dropped to 1.5-2 billion pairs after that.

    In January this year, it reached a new high, exports 260 million pairs, an increase of 15.7% over the same period, a 39.4% increase of the ring.

    Export value for the first time exceeded 1 billion US dollars, reaching US $1 billion 20 million, an increase of 45.1% over the same period last year, an increase of 39% over the same period.


    Two, general trade exports dominate. In January this year, Fujian province exported 230 million pairs of shoes in general trade mode, an increase of 17.8%, accounting for 88.5% of the total export volume of footwear exported from Fujian in the same period (the same below). Meanwhile, processing trade exports 20 million pairs, down 2.2%.


    Three, the private sector is the main export force with an increase of more than 3. In January this year, private enterprises in Fujian province exported 160 million pairs of shoes, an increase of 31.8%, accounting for 61.5%.

    In addition, foreign-invested enterprises exported 50 million pairs, down 8%, accounting for 19.2%, and state-owned enterprises exported 50 million pairs, an increase of 8.9%, accounting for 19.2%.


    Four, the United States and the European Union as the main export market, exports to Africa declined slightly. In January this year, Fujian province exported 80 million pairs of shoes to the United States, an increase of 0.3%; the EU's 70 million pairs increased by 43.4%; Africa's 30 million pairs decreased by 4.4%; the total 3 accounted for 69.2% of the total export volume of Fujian's shoes in the same period.


    Although the volume of footwear exports in Fujian increased in January this year, there are still constraints in the following aspects:


    First, the international trade protection layer is continuing. In January, the EU announced a 16.5% anti dumping tax on China's imported leather shoes for "sunset review", which means that China's anti-dumping duties on leather shoes for nearly 5 years in the EU are likely to be terminated in March 31st this year.

    However, some old shoe making countries such as Italy and Spain are still active in the review of complaints.

    In addition, the European Commission is investigating whether China's export credit policy violates the relevant provisions of the International Trade Organization (WTO), which may cause difficulties for Chinese enterprises to obtain low-cost loans.

    The continuous introduction of these trade protection measures has again cast a shadow over China's footwear exports.


    Two, raw materials and labor costs rose sharply. On the one hand, prices of raw materials such as cotton, rubber, leather, PVC and so on continued to rise. In January, cotton prices again showed a sharp upward trend. Domestic cotton futures prices stood at 30 thousand yuan / ton mark again, and the price of leather shoes and fabrics increased by more than 3.

    On the other hand, since last year, 27 provinces and municipalities in China have raised or planned to raise the minimum wage standard, and the cost of employment has increased rapidly.

    Since the beginning of this year, the employment situation in the Pearl River Delta, Yangtze River Delta and other manufacturing intensive areas has been tense. The central and western regions also frequently sounded the alarm of "lack of jobs", prompting enterprises to continuously raise workers' wages to cope with the increasingly severe "labor shortage".


    Three, the continued appreciation of the RMB exchange rate squeezed profit margins. Since China's second exchange reform in June 2010, the pace of RMB appreciation has accelerated.

    In January this year, the central parity of the RMB against the US dollar entered the 6.5 pass at once, making it the new high since the exchange rate reform.

    The United States says it will continue to exert pressure on the renminbi to appreciate.

    Brazil has said it will take measures to solve the problem of excessive currency and will take a more forceful stance in its trade negotiations with China.

    So this year the RMB faces tremendous pressure of appreciation.

    At present, 85% of China's footwear exports are still low and medium range, with profit margins mostly maintained at around 3%.

    It is estimated that the appreciation of RMB 3% will reduce the profitability of export enterprises by about 50%, and the profit margins of footwear exporters will be further squeezed.


    Four, the test of environmental protection is becoming increasingly severe. European and American countries have set up their own favorable standards by using environmental protection standards, safety and ecological certification, corporate social responsibility review and other technical barriers to trade, and set up many obstacles for China's footwear export.

    For example, the European Union's REACH list of authorized substances and the newly approved chemical substances review and regulation law in Japan will further restrict the processing technology of leather shoes and improve the inspection standards for leather shoes.

    Under the background of energy saving and emission reduction, China's footwear exports will face more "green" tests, and the sustained growth of exports will face enormous pressure.


    Therefore, it is suggested that: first, give full play to the role of industry associations in organizing and coordinating, actively utilize the WTO dispute settlement mechanism to deal with international trade barriers, and protect the legitimate rights and interests of China's export shoe enterprises; two, encourage and guide enterprises to increase technological innovation, actively develop high-tech, Gao Fu value added footwear products, and enhance their competitiveness; three, actively explore diversified export markets, disperse export risks, and improve the international market share of China's footwear industry.

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