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    The Shadow Of RMB Exchange Rate Disputes Is Difficult To &Nbsp; Clothing Enterprises Worry About The Loss Of Orders.

    2011/10/21 10:05:00 32

    Exchange Rate Clothing

    As the United States stepped up its pressure on the issue of RMB exchange rate through legislation, the Canton Fair, the most important platform for China's export trade, was opened in Guangzhou. On the 15 day when a number of Chinese export enterprises were interviewed, they said that because the export orders were mostly settled in dollars, the profit margins of Chinese export enterprises had shrunk in recent years, and the enterprises generally worried that the appreciation of the RMB would further squeeze their meager profits if they want to raise prices again, and if they want to raise prices, they will worry about the loss of orders.


    When the RMB exchange rate was again "stir fried" by the United States and Europe, exhibitors at the Canton Fair were worried that the pace of RMB appreciation would accelerate, thereby affecting their psychological expectations of export prices.

    Many exhibitors said that the recovery in Europe and America has been slow since the financial crisis and customers are also sensitive to prices.


    Chen Haiming, general manager of China's largest fridge exporter Xingxing Group foreign trade company, said that after the US Senate passed the RMB exchange rate bill, he had proposed to the major buyers in the us that the order price in the first quarter of 2012 should be increased by 3% on the basis of the current basis, so as to offset the expectation of RMB appreciation in the next 6 months. However, the request for price increase has not yet been completed and needs to be re negotiated.


    Li Jie, marketing manager of Limited by Share Ltd Marketing Department of Konka Group believes that the US Senate's motion to pass the RMB exchange rate policy is a naked trade protectionism.


    Li Jie said that the accelerated appreciation of the RMB exchange rate is undoubtedly a bad news for most of China's export enterprises, which will make the already meager profits already have to face the difficulty of shrinking again.

    But on the other hand, the fact that RMB appreciation also warned China's export enterprises must increase production efficiency, develop products with higher added value, and reverse the embarrassing position in the lowest value chain for a long time.


    Long Haiming, manager of overseas marketing company of Guangdong Feng al Aluminum Co., Ltd., said that when the 2012 election approached, taking the renminbi exchange rate as a matter of fact was the expedient measure for the us to pacify the unemployed mood and ease the pressure of domestic public opinion and the public's vision because of the need of political struggle.


    The Canton Fair, known as "China's first exhibition", is known as the barometer and weathervane of China's foreign trade. The Organizing Committee of the Canton Fair has fully anticipated the impact of the RMB exchange rate on the Canton Fair. Liu Jianjun, spokesman for the Canton Fair, said that the uncertainty of the RMB exchange rate made buyers and exporters more inclined to sign short lists and small bills.


    According to the feedback information of the 14 investment teams of the Canton fair since May, Liu Jianjun expects that the number of visitors to the Canton Fair will be basically the same as that of the previous session, with a slight increase in turnover and overall stability.


    Although market analysis generally believes that the US currency exchange rate supervision reform act 2011 is almost impossible to finally form a law, the negative impact has become a haze in the minds of many Chinese exhibitors at the Canton Fair.


     
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