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    Foreign Trade Is Tight, Ministry Of Commerce "Letter" To Save The Market

    2008/7/31 0:00:00 10262

    Ministry Of Commerce

    In the middle of July, the rumors that the export tax rebate of textile industry is about to be callback has been well known in the bookshops.

    A few days ago, reporters learned from authoritative channels that the Ministry of Commerce has formally made suggestions to the State Council to slow down the pace of RMB appreciation.

    This seems to indicate that the relevant departments of the state have begun to "rescue the market".

    The renminbi has repeatedly broken through "the other party has asked for a one year contract. Then I can't make a reservation. The list made in July 1st is likely to be made in August 1st next year, but not to earn money."

    Yesterday, Li Meng, the head of a clothing company who made clothing export business, said that the US dollar exchange rate is now 6.8. If it is ordered by 6.8, if next year comes to 5.8, will that be the same year?

    Huang Hui, chairman of the Wuhan red man group, one of the four banners of Han style clothing, said: at present, the textile enterprises that are still making clothing exports in Wuhan are less than 10%.

    In the interview, an industry insider also said: for garment export enterprises, the export price will be raised by about 20% to guarantee the capital.

    Driven by high international oil prices and other factors, the RMB exchange rate against the US dollar has repeatedly broken through, and the rate of appreciation has accelerated significantly.

    According to the latest data from China foreign exchange trading center, from RMB 8 to 7, and then to 6.822008 years ago, the RMB exchange rate against the US dollar has increased 50 times, and the cumulative increase has exceeded 7% during the year.

    Did some Han enterprises choose to "lie down" to avoid death or commit suicide?

    This is a difficult choice.

    "In the second half of last year, I was afraid to take orders from foreign countries. I changed my short-term orders and changed orders to big orders," said Zhao boss of a chemical export company in Dongxihu.

    "This is a real era of wolves," Zhao told reporters that his company has basically stopped all businesses and become a shell company.

    In his words, the export environment is bad, the price of raw materials rises, and the cost of manpower is rising. Under such circumstances, "lying down" is the best way to preserve strength.

    "Some small and medium-sized enterprises temporarily terminate their export business or turn to business because of the pressure of rising costs."

    Yesterday, reporters from the provincial business department responsible person was informed that in the first half of this year, Hubei electrical and high-tech products exports still "strong", but textile and garment exports and other traditional trade areas have declined to varying degrees.

    The Ministry of Commerce has learned from authoritative channels that the Ministry of Commerce has formally recommended to the State Council to slow down the pace of RMB appreciation and raise the export tax rebate rate for clothing, toys and footwear so as to prevent a sharp fall in exports.

    The industry believes that there will be a clearer indicator in the near future.

    Export tax rebates will increase by two percentage points to 13%, while garment export tax rebates will increase by 4 percentage points, and there are other varying degrees of increase.

    Liang Zhaoji, senior economist at DBS bank in Hongkong, has publicly stated that the appreciation of the renminbi will be slowed to below 5% next year.

    Yesterday, an official of the Hubei provincial chamber of Commerce said: "there are indications that the plight of small and medium-sized foreign trade enterprises is attracting the attention of China's top leaders."

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