Curb Trade Surplus And Continue To Expand China's Shoe Enterprises

The Tenth China (Jinjiang) International Footwear Fair opened in Jinjiang, Fujian on the morning of 19. A total of 1500 professional purchasers from more than 60 countries and regions in the world came to the conference to purchase, and more than 500 exhibitors at home and abroad.

The Jinjiang shoes Fair is co sponsored by the Fujian Provincial People's government, the China Council for the promotion of international trade and the China Light Industry Federation. With the theme of "brand Jinjiang, run-up to the Olympics", the exhibition area is 40 thousand square meters, with 1600 international standard booths.

For the first time, the shoe fair set up the hardcover area of small and medium-sized enterprises. For the first time, the "China Sports City Jinjiang" comprehensive exhibition hall was set up for the first time, and the "European shoe industry fashion exhibition area" was set up for the first time.

Li Jianhui, mayor of Jinjiang, said at the opening ceremony that the Jinjiang Shoe Fair has become a special exhibition fair for footwear industry with high international and important influence. "Shoe Fair is not only a business negotiation activity, but also a platform for comprehensively displaying new technologies and new concepts in the field of shoemaking at home and abroad."

The Jinjiang shoe fair started in 1999 and has held nine sessions. The total traffic volume of the first nine sessions reached 570 thousand passengers, and 11460 exhibitors at home and abroad, with a total contract paction of about 30 billion 100 million yuan.

At present, there are more than 3000 shoemaking enterprises in Jinjiang, with an annual output of 1 billion pairs, and over 57 yuan of enterprises. The products 60% enter the international market and are sold to more than 150 countries and regions in the world.

Jinjiang has become China's largest production base for tourist shoes and an important production base for world sports shoes.

First, the RMB appreciation even broke three barriers, the foreign trade shoe industry is very "injured" in February 21st, the RMB to the US dollar exchange rate intermediate price breaks through 7.15 passes, the quoted price 7.1503, the new high.

At this point, the central parity of the RMB against the US dollar has broken through the four largest integer pass, and the pace of RMB appreciation has accelerated significantly. The cumulative appreciation has reached 2.16% this year.

The appreciation of the renminbi has made many labor-intensive export enterprises feel pressure.

Earlier, the import and export data released by the General Administration of Customs showed that China's trade surplus reached 19 billion 490 million US dollars in January 2008, an increase of 22.6%, and the growth rate slowed down.

Research data show that the RMB appreciation of 10 percentage points, the growth rate of exports should be slowed down by 3 to 4 percentage points in general. Therefore, every import and export enterprise has tightened nerves on the appreciation of the renminbi.

The industry believes that appreciation can promote industrial restructuring, but for labor-intensive export enterprises, it is no doubt a huge test. The footwear industry is an important member of labor-intensive industries.

Fan Min, chief analyst of China's first textile network, told reporters that the profit of shoe companies dropped by 1 percentage points when the appreciation of RMB increased by 1 percentage points.

As the renminbi is likely to continue to appreciate, its pressure on production cost will also increase. Up to now, the exchange rate has appreciated by more than 13%, and the profits of enterprises are getting thinner and thinner.

Reporters at the shoe fair interviewed Bai Ruian, general manager of full fame Shoe Making Machinery Co., Ltd. (MarianoBonato).

He said: "the impact of RMB appreciation on us is mainly reflected in exports.

Our products are mainly for the Asian market, which is settled in US dollars.

Because of the rising domestic prices and the rising prices of various raw materials, the price of our accessories must also be raised.

Because the production cycle of our shoemaking machinery is relatively long, and the US dollar is falling every day, the price of our paction is very difficult to keep pace with the change of US dollar, resulting in our profits being constantly compressed.

Two, the trade surplus is too high, and the development should be based on the "development of domestic demand". The data released recently by the General Administration of Customs show that in 2008 January, China's foreign trade exports amounted to US $109 billion 660 million, an increase of 26.7%; imports of US $90 billion 170 million, an increase of 27.6%, and a surplus of 19 billion 490 million US dollars in that month.

Among them, general trade imports and exports amounted to 97 billion 550 million US dollars, an increase of 37.2%, and the import and export of processing trade reached US $81 billion 850 million, an increase of 15.8%.

It is understood that last year, China's annual import and export value for the first time exceeded 2 trillion US dollars, reaching 21738 billion US dollars, an increase of 23.5% over the previous year and a net increase of US $413 billion 400 million.

But in fact, in 2007, although China's foreign trade maintained a rapid growth of over 25%, the export growth rate slowed down from August 2007 and remained at about 22% for 5 consecutive months.

Last year, the Ministry of Commerce and the relevant ministries and commissions jointly issued a series of policies to reduce export rebates and impose export duties, and at the same time increased the adjustment policies for processing trade, which all became the internal reasons for the reduction of export orders in China's footwear industry.

China's current dependence on foreign trade has been too large, and the policy of encouraging exports for a long time has led to huge expenditure on export subsidies and export tax rebates. On the other hand, the domestic market is far from satisfying.

Liu Shangxi, deputy director of the Fiscal Science Research Institute of the Ministry of finance, said: "at present, the export oriented characteristics of China's economy are becoming more and more obvious, and the degree of dependence on foreign trade has exceeded 70%, which will bring great public risks.

In the process of economic development, we need to be clear about whether domestic demand should be the main concern, or should we spend more efforts to expand external demand.

Dr. Liu Shangxi said that the dependence on foreign trade is too high, and the dependence of financial revenue on foreign trade will also increase correspondingly.

At present, about 1/3 of the central government's revenue comes from import and export trade. This proportion has been quite high, and the change of foreign trade situation will certainly have a great impact on the financial sector.

At the same time, the excessive development of foreign trade means an increase in the export tax rebate.

Especially in the eastern part of China, the export tax rebate has brought an excessive burden to the finance.

"We should not overlook the indirect effects, which will have a long-term impact on energy, raw materials and environment, and we need more government investment to solve them."

From the perspective of economic development strategy, the adjustment from foreign trade to domestic demand is inevitable, because domestic demand is much larger than foreign trade scale and is the real potential of economic development.

Yuan Gangming, a researcher at the Macroeconomic Research Institute of the Chinese Academy of Social Sciences, said: "the foreign exchange earned from foreign trade is money. Is it not the money earned by domestic trade?"

Subsidies and tax rebates should be put in support of domestic demand, so that domestic demand can lead to economic development.

Three, China's footwear industry: a breakthrough in pition. China is the largest shoe producing country and exporter in the world.

In recent years, China has produced over 10 billion pairs of shoes each year, accounting for 66% of the total global shoe making. It is the largest footwear manufacturing base in the world and the largest footwear exporter in the world.

In 2006, China's footwear exports amounted to 7 billion 650 million pairs, with a total export value of US $21 billion 810 million, and exports accounted for more than 53% of the world's total exports.

However, in 2008, the unique Chinese footwear industry began a new fission. In the international trade barriers, RMB appreciation, raw material prices and labor shortages, especially the implementation of the new national labor contract law, China's footwear industry, which has been in a strong position, is facing severe challenges and tests.

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

According to the General Administration of customs statistics, in 2007 1-10, China's clothing and footwear exports totaled US $116 billion 620 million, and imports amounted to US $1 billion 870 million.

Among them, footwear amounted to 250 million US dollars, with a cumulative surplus of US $115 billion, accounting for 54.2% of the same period surplus (US $212 billion 360 million).

Cheap, huge quantity and large number of enterprises are the main characteristics of China's export footwear.

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 footwear 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 export prices remained at a level of 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.

Experts say that if the huge trade surplus will bring a new round of trade frictions, 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".

China's footwear industry has a long history. With the tide of reform and opening up, China has undertaken the shift of the international footwear industry, and has become the world's largest footwear production center and sales center. It has formed a very perfect industrial chain and industrial development platform, and has basically occupied the middle and low end shoe products market. The traditional shoe making powers such as Italy, Spain and Portugal have abandoned the low and middle end market, and have all shifted to high-end market. The footwear industry in Brazil, South America has begun to turn to high-end market.

This is a trend of international industrial development.

China's shoemaking is mostly concentrated in the southeastern coastal areas, and now it is also facing problems of rising labor costs, tight electricity supply, rising raw material prices and stringent environmental requirements. Some shoe factories (mainly large factories or non-standard small factories) are faced with the choice of closing and pferring, and some shoe factories are closing down or moving to other places.

The competitive advantage of China's footwear industry is obvious, but how to adapt to changes in the international market and domestic environment, grasp the market development opportunities, is also the reality that the industry has to face.

According to the analysis of relevant experts in the industry, the development of China's footwear industry will inevitably move from the low-end market to the high-end market, and from quantity to quality and efficiency. Upgrading and upgrading of the industry will be the way to go. Therefore, in terms of quantity, the production and export volume of China's footwear industry may decline in the future, but the quality will be improved, and the price of products and the total value of exports will continue to grow.

As one of the exhibitors of Shoe Expo, Xu Weiya, manager of sales and service center of Fujian CXS machinery factory in Yancheng, Jiangsu, told reporters: "we are the best seller and most popular brand in Fujian.

Our products are of good quality and brand, not only abundant funds, but also new and old customers.

Our products are higher than other brands 3-5% in the industry. With the rise of the renminbi, we raised the price by about 5%, but it still does not affect our sales volume.

In 2007, the sales volume of our factory reached fifty million, and the sales volume since last Spring Festival has reached the sales volume of last year. "

This proves that under the pressure of RMB appreciation, famous enterprises win the market by relying on quality.

The pformation and pfer of China's footwear industry is the trend of the times. Some enterprises with strong innovation and standardization will move towards the road of industrial upgrading. Some enterprises that rely on the cost of production will be pferred to the mainland where the cost of production is more advantageous. For example, the footwear industry in the Pearl River Delta of Guangdong has begun to shift to the relatively backward areas of the East and West wings, and the footwear industry in Wenzhou has shifted to the western region.

The domestic market is expanding.

China is a huge consumer market with a population of 1 billion 300 million. At present, China has only 1.7 pairs of shoes per person per year. In the next few years, China's per capita consumption of footwear will increase to 3-4 pairs, which is entirely possible. Therefore, China's capable shoemaking enterprises should improve their product design and independent innovation ability, establish, cultivate and develop their own brands in the domestic market, establish marketing channels, and better expand the domestic market.

Jinjiang famous sports shoes brand Anta people interviewed by reporters said that Anta's main market in China.

Domestic sales increase by more than 50% per year.

Our strategic goal in 06 years is to build Anta into China's first national sports brand in 2010.

The reason why Anta concentrates on the domestic market is the huge potential of China's sporting goods market.

At present, Chinese people spend only 3 pairs of shoes per person per year, while the average American per capita is 7 pairs per year. The contribution of Chinese sports products to GDP is still very small, and that of developed countries is 10 times that of ours.

We believe that with the development of China's economy and the improvement of people's living standards, people will pay more and more attention to health. With the promotion of the Olympic Games, China's sports shoes will usher in a broader market space.

Create brand and expand international market.

Chinese shoes have occupied an important market in the international market.