The Canton Fair Will Play A "Strong Heart" For Enterprises Again.

On the 13 day of the 110th Canton Fair opening press conference, Liu Jianjun, spokesman, admitted that the current economic recovery in Europe, America and Japan was weak, domestic inflation continued, and the capital chain of enterprises was tight. Exit The overall situation is not optimistic.

As an important vane for China's foreign trade and even the strength of the world's economic development, the volume of each canton fair and the situation of merchants attending the meeting are all concerned at home and abroad. At this critical time, the central leadership personally participated in the opening ceremony of the Canton Fair, which undoubtedly set a "strong heart" for small and medium-sized enterprises.

Export or continuous decline in the next half year

Two days ago, Nanfang Daily visited dozens of export companies at the Canton Fair, even though the company was at a cost. Rise With the difficulty of price increase, the arrival of Premier Wen Jiabao has brought spiritual encouragement to enterprises.

Wang Jinliang, the director of Shanxi new China International Trade Co., Ltd., which produces lighting equipment, said Premier Wen's presence at the opening ceremony made him hearten and gratified. The Canton Fair has gathered the best and most representative export enterprises in the country, while Wang Jinliang is a silhouette of the exhibitors of Canton Fair.

The latest statistics of the General Administration of Customs show that in September, the total value of China's imports and exports was 324 billion 830 million US dollars, an increase of 18.9%. Among them, exports increased by 17.1% over the same period last year. Compared with August, the export growth rate dropped by 7.4 percentage points, the export scale decreased by 3 billion 650 million US dollars, and imports grew by 20.9% over the same period last year, down from 10 percentage points in August.

The trade surplus in September slipped from $17 billion 700 million last month to US $14 billion 500 million as exports declined rapidly. Experts generally believe that the current global economic environment, especially Europe may fall into recession again, China's import and export trade in the coming months or maintain a downward trend.

This year, the export volume is expected to reach US $45 million, deputy director of Overseas Group sales of construction materials, Weng Yalong, told reporters that orders for exports to Europe and the US have begun to decrease in recent months. According to the experience of the international financial crisis in 2008, we believe that the impact of the European debt crisis on foreign trade will lag about 3-6 months, and we conclude that exports will continue to decline in the next six months.

Export enterprises trapped inside and outside

In fact, the export enterprises are facing not only the difficulty of reducing external demand, but also domestic inflation which started from the second half of last year, which makes the enterprises face huge cost increases. For most enterprises lacking brand and lack of innovation and technology capability, price increase is often not acceptable to foreign buyers.

Premier Wen Jiabao, who came to Guangzhou to attend the opening ceremony of the Canton Fair, held a forum on foreign trade enterprises in Guangzhou. At the symposium, business representatives generally reflected that in recent years, the rise in labor and raw material prices and the appreciation of the renminbi caused the profits of foreign trade enterprises to decline and production and operation difficulties. We hope that the government will take measures to help enterprises overcome their difficulties.

Nearly 90% of the Christmas gifts from China are produced in China, and Guangdong Ying Hao arts and Crafts Co., Ltd. is a private export enterprise that hosts Christmas gifts and other Western holiday gifts. Zhou Zongyou, general manager, said that the export volume of enterprises in these two years continued to grow, but their profitability declined. The main reason was the rising cost of exports and the declining purchasing power of foreign customers.

Guo Xiaohui, executive vice president of Shenzhen Association of foreign invested enterprises, counted Premier Wen's account on the increase of the comprehensive cost of enterprises: "wages have increased by 10% every year in recent years. But this will also generate many costs. For example, pension insurance accounts for 10% of the total salary, medical insurance accounts for 6.5% of the total wage, and trade union membership fee is 2%, which will increase correspondingly.

Guo Xiaohui, taking the influence of RMB appreciation on enterprises as an example, she said that more than 60% of the 200 enterprises said that the amplitude would exceed 3%, which would have a great impact on the enterprise, or even a loss.

"From a numerical point of view, more than 65% of enterprises are affected by the exchange rate adjustment, which is directly related to the decline in profit margins. If the settlement is made in US dollars, the cost will rise by three percent to five, but it will be more than that figure in Euro settlement. I can see that the cost of some enterprises has risen to fifteen percent or even higher.

Li Quanhuai, deputy general manager of Shandong neon Wang Electronics Co., Ltd., also told reporters at the Canton Fair that the customers from this Canton Fair were obviously cautious. An important reason is that the quotation has been greatly improved.
 

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Stephen Philips, President of the Sino British Trade Association, told reporters in the Nanfang Daily that the quotations of many Chinese suppliers in the last two Canton Fair have been greatly improved. Some enterprises' quotations even increased by 20%-30% over the same period. This may affect the procurement plan of European buyers in China. They can transfer to more competitive regions in Vietnam, Indonesia and South America. "But at present, the advantages of China are still quite obvious."

Small and medium-sized enterprises

The new deal is brewing.

Regarding the problems reflected by enterprises, Wen Jiabao said, we must attach great importance to the impact of environmental changes on foreign trade enterprises at home and abroad, keep sober minded and enhance their sense of hardship, calm down and observe the situation, expect to make the situation somewhat grim, and make preparations for coping with them more fully, and strive to maintain steady and rapid growth in imports and exports and avoid major ups and downs. Wen Jiabao stressed the importance of improving the quality and efficiency of foreign trade and enhancing the sustainable development of foreign trade. We should attach importance to exports as well as import and promote a balanced balance of payments.

Wen Jiabao pointed out that at present and in the coming period, foreign trade should focus on the three pillars of "steady growth, adjustment of structure and promotion of balance". Steady growth is to overcome the adverse effects of external environmental changes and solve the practical difficulties faced by foreign trade enterprises in a timely and appropriate manner so as to maintain steady growth in imports and exports. We must base our efforts on expanding domestic demand to achieve sustained economic development, but foreign trade enterprises can not easily give up their international market share.

To adjust the structure is to optimize the structure, market structure and regional structure of import and export products, improve the quality and efficiency of foreign trade, and enhance the sustainable development ability of foreign trade.

Promoting balance means paying attention to exports and paying attention to imports so as to promote the basic balance of international payments. Emphasizing "promoting balance" is not to suppress exports, but mainly to expand imports, not to restrict the use of foreign capital, but mainly to expand foreign investment.

Affected by the changes in the economic environment at home and abroad this year, the instability and uncertainties affecting the development of foreign trade have increased significantly in recent months. The export enterprises attending the Canton Fair generally believe that Premier Wen Jiabao's foreign trade research speech in Guangdong can be expected that the state or relevant policies will be promulgated.

Cheng Jiajia, deputy manager of the overseas marketing department of Foshan City, believes that "the importance of leaders has proved that the state attaches great importance to the export of small and medium-sized enterprises. The difficult countries of the enterprise are in the eyes, and believe that there will soon be relevant policies to support SMEs."

Wen Jiabao said at the symposium that the "36 rules" on encouraging and guiding private investment will be promulgated soon.

Wen Jiabao said that when the international financial crisis happened in 2008, I told you that when winter comes, we should be confident and welcome the spring. Now that we are faced with difficulties, we must still be confident and firmly believe that difficulties can not defeat us. We should make concerted efforts to overcome the difficulties and make the economy take a step further.