Shoe Enterprises Export Advantages, Lack Of Support, Surplus, Too High Cost.

In 2007, a prominent feature of China's economic operation is the rapid growth of the trade surplus.

From 1 to November, the total value of China's imports and exports reached US $1 trillion and 969 billion 90 million, which has exceeded the annual level in 2006, with exports of US $1 trillion and 103 billion 610 million and an increase of 26.1%.

From 1 to November, the cumulative trade surplus was US $238 billion 130 million, an increase of 52.2% over the same period last year.

The high surplus is the result of global industrial pfer and domestic industrial layout. It shows that China has the competitive advantage of abundant labor resources and has its inevitability. The surplus also accumulated valuable funds for China's economic construction and promoted economic and social development.

However, Gao Shun difference also brings a series of problems.

In particular, the accumulation of surplus in China is too much dependent on the processing of raw materials and the export of resource products, relying on low prices to participate in competition in the international market, and lack of long-term support. The formation of the favorable balance of trade is at the expense of resources, environment and damage to the interests of workers in some places.

The trade surplus is the result of global industrial pfer, and also related to factors such as abundant labor resources and strong industrial supporting capabilities. From the center of Dongguan, Guangdong, to the northwest, about 20 minutes later, it came to the town of Gao Bu.

Yuyuan Industrial Group Dongguan manufacturing plant is located here.

This is a Taiwanese sole proprietorship manufacturer with 74 production lines: 65 thousand employees from Guangdong, Jiangxi, Hunan and so on. Each year, about 40000000 pairs of sneakers with "NIKE (Nike)" trademark are sent to all parts of the world, while the processing fee of nearly 1 billion HK dollars is left.

"In the factory area of 1500 mu, there are football fields, libraries, kindergartens, shopping malls, restaurants, post offices, night schools...

65 thousand workers can meet all the needs of life without leaving the factory. "

Liu Manpan, manager of plant business department.

There are many other enterprises like Yuyuan Dongguan manufacturing plant in Dongguan.

"By the end of August 2007, more than 30 foreign countries and regions had invested in foreign investment, and 46 of the world's top 500 enterprises invested in 80 projects.

From 1 to September 2007, the total import and export value of the city amounted to US $74 billion 200 million.

Among them, exports amounted to US $41 billion 600 million and trade surplus was US $9 billion.

Liang Haoqi, deputy investigator of the Dongguan Municipal Bureau of foreign affairs, said that the city has developed from an ordinary small town on the edge of Guangzhou to a thriving city with a total export volume of third, which is known as the "city of processing trade". The city's processing trade enterprises have reached 1.5.

Dongguan's experience has proved that the development of an export-oriented economy has not only achieved rapid economic and social development, but also provided millions of jobs.

Migrant workers from Guangdong, Jiangxi, Hunan, Hubei and other places have achieved employment here, and have brought back the accumulated labor income to their old home to raise their living standard.

"At present, the number of floating population in the city is over 8 million, 5 times that of the local population."

Liang Haoqi said.

From an international background, the trade surplus is the result of global industrial pfer.

With the development of economic globalization, the international industry has accelerated to China. China has become the main destination country to undertake global industrial pfer.

From the domestic perspective, factors such as abundant labor resources and strong comprehensive supporting capabilities have also contributed to the sustained growth of the trade surplus.

Since joining the WTO, China's tariff level has been greatly reduced, various import non-tariff measures have been cancelled, foreign trade barriers to China have been reduced, and the export environment has improved significantly, creating favorable external conditions for expanding exports, utilizing foreign capital and overseas investment.

In a sense, the surplus is not a bad thing.

The surplus has accumulated funds for economic development and increased the country's foreign exchange reserves, which is necessary to enhance the comprehensive national strength.

The surplus also proves that China's commodities have been recognized and accepted by the deficit countries and have certain advantages in the international market competition.

In fact, in the process of industrialization, the trade surplus is inevitable.

From the international experience, the United States, Germany and Japan all experienced large trade surpluses in the course of development, and lasted for a long time.

China's export advantages are mainly based on low labor costs and low prices of products, and lack of long-term support. "Recruitment has become more and more difficult recently."

At the end of the year, a human resource manager of a garment enterprise in Shunyi District, Beijing told reporters that "before, every worker's monthly salary is only 800 yuan. Now, the wage doubled, it is not necessarily able to recruit people."

The company has more than 2800 employees, with an annual output of 1 million 800 thousand pieces of clothing, with an annual sales income of over 300 million yuan, and about 20000000 US dollars in export earnings. It is one of the top 100 enterprises in China and 70% of its products are exported.

Because there are many similar export enterprises in the market and fierce competition, enterprises are under great pressure.

Especially after the establishment of a modern automobile factory nearby, the cost of labor increased even more: compared with the automobile factory, "if you do not raise your salary, you will not be able to recruit people."

Clothing, footwear and other light industrial products are a major source of China's trade surplus.

According to the General Administration of customs, from 2007 to October, China's clothing and footwear exports totaled US $116 billion 620 million, and imports of US $1 billion 870 million (costumes $1 billion 620 million and shoes 250 million US dollars), with a cumulative surplus of 115 billion US dollars, accounting for 54.2% of the corresponding surplus of the same period (212 billion 360 million US dollars) in the same period of October.

Low price, huge quantity and large number of enterprises are the main characteristics of China's export commodities.

But in recent years, with the increase of labor costs, shortage of land supply, and the rise of resources such as coal and electricity, the advantage of China's export commodities is weakening.

According to media reports, in the first three quarters of this year, there were nearly 1000 shoe factories and related enterprises in Guangdong, which were otherwise developed due to various factors or active closure.

Of the more than 1000 shoemaking enterprises in Dongguan, 200 - 300 have failed.

The number of footwear exports in China increased from 3 billion 970 million pairs in 2000 to 7 billion 850 million pairs in 2006. In the first half of 2007, China's export shoes increased by 4 billion 400 million, up 12.3% from the same period last year, but the unit price of exports always lingered at 2.5 US dollars / two levels.

"This is mainly because in the whole industry chain, high quality raw materials, core technology, R & D design and marketing rely mainly on foreign countries."

Wang Hanjiang, President of China Light Industry Arts and crafts import and Export Chamber of Commerce, said.

It can be seen that China's export advantages are mainly based on low labor costs and low prices of products, and lack of long-term support.

Because of the large quantity, low price and low quality, coupled with the disorderly competition within a certain range, it will easily lead to international trade friction.

By the first half of 2007, the European Union has launched 127 anti-dumping investigations against China.

Moreover, problems such as waste of resources, pollution of the environment, and damage of workers' interests are increasingly highlighted.

For example, in 2006, China's steel exports amounted to 40 million tons, accounting for 1/5 of the total steel trade in the world.

But most of them are coarse steel products with low added value, high energy consumption and high pollution.

It is estimated that China's annual exports of high-energy products are equivalent to the total 1/5 of the total energy consumption of the country.

"If the huge trade surplus will bring a new round of larger trade friction, if China only" eat "into the figures without the corresponding practical benefits, if the growth of exports is at the expense of resources, environment and damage to the interests of workers, the huge trade surplus is likely to become" hot potato ".

Experts say.

We should reduce the various invisible cost discounts in export commodities and make up for all the costs we should pay. "We feel the pressure of policy."

Chen Zugen, general manager of Hangzhou Wei Ling Steel Furniture Co., Ltd., said that the state reduced the export tax rebate rate from 13% to 9%, and the company would reduce its tax rebate by more than 15 million yuan per year.

"Now, we have only two ways to pform products and to pfer factories to Vietnam and other Southeast Asian countries."

In order to alleviate the problem of surplus, from September 2006 to July 2007, in less than a year, China issued 6 macro-control measures for a long time, drastically reduced the export tax rebate rate of some commodities, announced a new batch of processing trade restriction catalogues, and implemented bank guarantee, gold and Taiwan accounts and pfer management to restricted commodities.

"Degree and scope are unprecedented, showing the determination of the state to control the surplus of foreign trade."

One business man said.

In fact, the effectiveness of these measures is beginning to show.

From 1 to October 2007, the trade surplus increased by 59%, slowing by 10.2 percentage points over the first 9 months.

But from a long-term strategic level, we should adjust the trade surplus, and we should focus on solving two major problems: the return of export prices and the expansion of domestic demand.

Experts from the Ministry of Commerce said.

The expert pointed out that the formation of the trade surplus is closely related to factors such as economic growth, exchange rate and labor cost advantages.

To reduce the surplus, we need to reduce the various invisible cost discounts in the export commodities, make up for all the costs that should be paid, and thus make "China make" a real competitive power, and also contribute to saving resources, protecting the environment and safeguarding the interests of labourers.

Recently, the head of the national development and Reform Commission has made it clear that it will take into account the affordability of all sectors of the economy and society, and strive to promote the reform of the prices of resource products, rationalize the price relationship and improve the efficiency of resource utilization.

At the same time, we will focus on promoting the "polluter pays" system. First, we will collect all the sewage charges in all cities of China, and will also raise the charging standard for industrial enterprises.

Of course, fundamentally speaking, to reduce the trade surplus, we need to expand domestic demand and pform the economic growth from export driven to domestic demand.

Specifically, first, we should appropriately raise the wages and welfare level of industrial workers, especially the vast number of migrant workers, and promote the rationalization of labor prices; two, we should improve the environmental protection supervision mechanism and achieve the environmental cost enterprises' commitment; three, we should improve the distribution system, standardize the distribution order, increase the income of the residents, solve the re employment of laid-off workers, reduce the number of zero employment families, and continuously enhance the domestic consumption capacity, and at the same time, improve the social security system as soon as possible, and solve the worries of housing, education, medical care and pension for the people concerned, so as to enhance consumer confidence.