China'S Foreign Trade Pformation In Labor Pains

Who is paying attention to China's foreign trade?

Where does China's future foreign trade policy go?

Premier Wen Jiabao in this year's government work report again conveyed the signal of pformation and upgrading of foreign trade. How to pform it?

How to upgrade?

"The export tax rebate", "processing trade", "two high one capital" and other policy adjustments are still in the heart. How should enterprises cope with confusion?

The newspaper collate the views of members during the "two sessions" to provide readers with readers.

China's foreign trade has undergone a pformation in labor pains. "Labor costs have risen sharply, raw material prices have risen, and RMB is strong."

These problems lie in front of export enterprises. What should enterprises do?

Either it will upgrade the industry, or there will be no profit or even bankruptcy.

Feng Dongming, chairman of the CPPCC National Committee and chairman of Meck Investment Group Co., said helplessly.

As a foreign trade enterprise, Feng Dongming has to face many uncertain factors and potential risks of the international economic environment changes. The furniture produced by his enterprises is mainly exported to the United States. Under the influence of the US subprime mortgage crisis, the domestic demand of the United States has slowed down, making his business worse.

Therefore, at the two sessions held recently, what Feng Dongming most concerned about was the direction of China's future foreign trade policy.

Wen Jiabao, premier of the State Council, once again conveyed the signal of pformation and upgrading of foreign trade in this year's government work report. He pointed out that while maintaining steady growth in exports, we should accelerate the pformation of the mode of foreign trade development, optimize the export structure, encourage the export of independent intellectual property rights and independent brand products, improve the quality, grades and added value of export products, actively expand imports, and increase imports of advanced technology and equipment, important raw materials and key components and components.

Mr. Li Wuwei, member of the CPPCC National Committee and director of the Department of Economic Research of the Shanghai Academy of Social Sciences, has been concerned about China's foreign trade policy adjustment.

He believes that China should stick to the current direction of adjustment and accelerate the pformation of the development mode of foreign trade.

He said: "first, we can not rely on exports of large resources to solve economic development problems; second, we should not take low price as our main competitive means.

We adjust our policies and hope that exports are not those with high consumption and high pollution, but high value-added ones. "

Foreign enterprises and processing trade have been occupying more than half of China's foreign trade, especially China's exports. Although China has become the world's third largest trading power in the short term, it has led to a small profit in China's foreign trade.

Behind the bright figures, the actual profits are flowing into the hands of Western brands and sellers.

On the other hand, China's manufacturing is increasingly directly exposed to the interweaving of factors such as intensified trade frictions and quickening the pace of RMB appreciation.

In 2005, the textile special safeguard incident, the EU shoe anti-dumping incident in 2006, the "double anti investigation" in 2007 and the European and American countries' collective attack on our steel products, a series of major cases affecting the export enterprise nerves, made China more deeply aware of the meaning and intention of "reasonable control", and bid farewell to the era of "quantity expansion and low price competition".

In 2006, China proposed to actively expand imports. In 2007, China's foreign trade will focus more on "reducing the surplus" and optimizing the import and export structure.

A series of intensive policies such as tariff collection, reduction of tax rebate and addition of processing and trade prohibition and restriction catalogues have intensified the adjustment of exports of "two high and one capital" products, and promoted the pformation and upgrading of processing trade.

While slowing down exports, these policies have speeded up the pace of improving technological added value, manufacturing upgrading, product differentiation and brand strategy.

Behind the progress of these painful changes, enterprises gradually taste sweet strategies such as "quality win", "science and technology developing trade" and "intellectual property rights". However, some enterprises taste the pains of policy adjustment such as "export tax rebate", "processing trade" and "two high and one capital" policy.

Feng Dong pointed out that most of the export enterprises in China worry about their own development prospects: the reduction of external demand, the rise in prices of raw materials, the appreciation of the renminbi and the macro-control measures adopted by the government.

All this has made the labor intensive industries such as toys, clothing and furniture flourishing in China.

This year, faster than the exchange rate is the heartbeat of the exporters.

The rapid appreciation of footsteps has made the ghosts of the "6 era" closely tied to the daily business negotiations of enterprises.

According to our reporter's investigation, the two major difficulties encountered by enterprises are exchange rate, and two, employment.

According to market expectations, the central parity of RMB against the US dollar will be "broken 6" by May, and it will probably reach 6.6 to 6.7 by the end of the year.

Therefore, at present, many enterprises' orders are signed at 6.7 or 6.8 exchange rate, and even some enterprises have reported 6.5, and fully estimated the exchange rate risk in the following months from delivery to delivery.

In addition, the US subprime debt crisis hit the same time. It seems to magnify all unfavorable export factors at the same time: the rise of energy and pportation prices, tight capital supply, increased labor costs, the subsequent impact of the adjustment of export policies, the weakness of US consumption and the risk of downwind of the world economy, and so on.

Market warning, such as the superposition of these factors, will greatly increase the uncertainty of China's foreign trade and enterprise development.

The reporter understands, at present, many labor-intensive export enterprises in the southeast coastal areas have already faced the pressure of survival.

Ma Xiuhong, deputy director of the National Committee of the Chinese people's Political Consultative Conference and vice minister of Commerce, pointed out that some Chinese export enterprises are suffering from the pformation.

Export enterprises look forward to the policy warming in the context of accelerating the pformation of China's foreign trade. Foreign trade enterprises contacted by reporters hope that this year's export policy will remain "moderate", and some enterprises shouting "export fever drugs" can not be eaten together.

As Zhang Yuanlong, vice chairman of the National Committee of the Chinese people's Political Consultative Conference and vice chairman of the National Federation of industry and commerce, told the media: "the superposition of various negative factors has made the enterprise indigestion, and then it is going to be a problem if the temperature is cooled down again."

Faced with the domestic high CPI and the trade surplus which is difficult to show clearly, some view is that it is possible to increase the appreciation rate of the local currency and reduce the inflow of hot money and curb inflation by lowering the appreciation expectation.

Regarding this, Yin Mingshan, vice chairman of the Chongqing municipal CPPCC and chairman of Lifan Group, said that the current exchange rate policy should be stable, especially in one step.

"If we say an appreciation of 20% by the Americans, China's enterprises will really fall down."

Yin Mingshan said: "enterprises can upgrade, but it is never overnight. Policy adjustment should give enterprises a certain buffer period."

Wang Zheng, chairman of the CPPCC National Committee and chairman of Beijing Rong Feng Real Estate Development Co., Ltd., is not in favour of speed appreciation.

In an interview with the media, he pointed out that the current rate of appreciation has made the pressure of enterprises more saturated. Our exchange rate policy must conform to the actual conditions of China and the reality of enterprises, and can not be taken for granted from a theoretical perspective.

In fact, in regard to the direction of the exchange rate policy, Zhou Xiaochuan, governor of the central bank, has made a clear statement in the interview during the two sessions: "appreciation" is not a decisive factor in curbing inflation.

In an interview with the media, Ma Xiuhong, Vice Minister of the CPPCC National Committee and vice minister of Commerce, also pointed out that the gradual appreciation of RMB has achieved good results.

China implements the exchange rate mechanism based on market supply and demand while considering a basket of currencies and other factors.

Market supply and demand play a decisive role here. China does not emphasize or determine a certain rate of appreciation based on "human factors".

When Feng Dongming talked about the main difficulties and problems faced by China's export oriented manufacturing industry, he said that a series of specific policies promulgated by the government in the process of macroeconomic regulation and control provided enterprises with too short buffer time. The fundamental role of the market in the process of resource allocation was not released by science, resulting in a sharp rise in the overall cost of enterprises and seriously affecting the competitiveness of export enterprises in the international market.

Therefore, he suggested that at present, our government should selectively relax fiscal policy, avoid new measures to curb manufacturing exports, encourage enterprises to expand imports, comprehensively control the "favorable balance of foreign trade", and further improve the export tax rebate and processing trade policies.

Regarding this, Wei Jianguo, Vice Minister of the National Committee of the Chinese people's Political Consultative Conference and vice minister of Commerce, made clear that the Ministry of Commerce and other relevant departments are actively studying specific plans, and continue to guide enterprises to upgrade and optimize their structures.

In this process, we will fully consider and absorb the views of export enterprises and adopt the principle of prudence and gradual progress.

Especially when there are many variables in the trade environment, we should grasp the regulation and control efforts to create a favorable development environment for enterprises.

The statements of several authoritative delegates made the enterprises feel a little comfort.

In fact, this year's policy changes, many enterprises have "catch the shadows" and put them into their own overall consideration.

For example, on the news that the export tax rebate policy has been widely announced recently, many enterprises have already taken relevant measures when signing contracts.

Zhang Yuanlong, a member of the CPPCC National Committee and the vice president of the National Federation of industry and commerce, regrets that among the factors of unfavorable export, I do not know which one will be the "last straw" that crushed the enterprise.

He hoped that policy adjustments should be comprehensive and not "one size fits all".