Export Cold Winter Draws Back A Large Number Of Small Businesses

Recently, data released by official and non-governmental organizations point to the reality of winter in domestic manufacturing industry.

Fortunately, this situation will not affect the stability of employment for the time being.

(PMI) the manufacturing industry purchasing managers index (PMI) was 48.4% in August.

This index has remained below 50% for two consecutive months since July.

Is it ready for the euro economy to be derogated? The manufacturing purchasing managers' index is an internationally accepted indicator system for macroeconomic monitoring and plays an important role in monitoring and forecasting national economic activities.

If the index is above 50%, it reflects the overall expansion of the manufacturing economy; less than 50% usually reflects the overall decline of the manufacturing economy.

The latest Chinese manufacturing report released by CLSA also shows a weak trend in recent months.

The report points out that the Manufacturing Purchasing Managers Index in August was 49.2%, down from 53.3% in July, the first time it has shrunk since November 2005.

The latest research report of Hu Yuexiao, a Shanghai Securities researcher, also showed that in August, the volume of purchases, new orders, existing orders and production of enterprises had dropped to a new low since 2005.

He believes that from the perspective of the state of business and the inventory of finished goods, the outlook is not optimistic, and the growth rate of industrial production in the future is likely to slow down.

Even if sales are not affected in the short term, there will be signs of growth slowdown at the end of the year and early next year.

According to PMI data, Chen Naixing, a researcher at the Institute of macroeconomics of the Chinese Academy of Social Sciences, told the first financial daily that this is basically in line with the current situation of China's economy.

He believed that from 2006 to 2007, China's exports were the most prosperous period. The export orders in the first half of this year performed well, mainly due to the inertia effect of the high export growth last year. Finally, the order problem was finally revealed in 7 and August.

Chen Naixing also said: "the signs of recovery in the short term may be hard to see. This is because there are signs of recession in the three largest economies of the world, the United States, the European Union and Japan. On the other hand, the current domestic economic situation is not optimistic if there is no effective policy support."

The reduction of orders has not yet affected employment. Since this year, Guangdong, Zhejiang, Jiangsu, Fujian and other important export production bases have already reduced orders for some labor-intensive industries.

Zhu Sujun, assistant president of Ningbo Shanshan Limited by Share Ltd, told reporters yesterday that August was the peak period for processing domestic and foreign trade orders. Only domestic orders were very hot this year, but the whole production line was relatively loose. The export tax rebate did not change the situation of export is not optimistic.

The export volume of Chinese fir has decreased significantly this year, especially in the US market.

Zhu Sujun said, on the one hand, the global economic downturn has affected the order of customers, and on the other hand, the increase in production costs has made it necessary for companies to selectively place orders.

However, "we will not lay off workers. General clothing exports will be slightly better in the second half of the year than those in the first half of the year. Christmas and other holidays will boost consumption."

Ding Shishui, general manager of Fu Shi Lai Group, located in Jinjiang, China shoes capital, said: "for the whole shoemaking industry, orders are falling sharply, especially in the middle and low end products". Ding Shishui

Even if there are orders, Ting Shi Shui is not too bold to answer, "before the bank can see orders to consider loans, loans this year is very difficult."

He believes that if the current tight financial policy does not change, many enterprises will be in trouble. Even a lot of enterprises around him have stopped production or closed down because of the problem of capital chain.

Li Peng, secretary-general of the Asian Footwear Association, said the shoe industry's export outlook is expected to last at least until the end of the year.

The prospect of processing export food enterprises is also not optimistic.

Long Lian Jun, general manager of Henglong food import and Export Co., Ltd., Zhongshan, Guangdong, told the reporter that the number of exports of the company was 1/3 lower than that of the same period last year. The last one or two months are not only a continuous decline in export volume, but also a continuous rise in the price this year. Different types of food export prices have dropped.

It also reflects that some customers have pferred some orders to Southeast Asia, and some food processing enterprises have failed because they can not receive orders.

The company has advantages in processing technology and some stable orders, so it will not lay off workers temporarily.

Chen Huiyong, director of Dongguan dream Wright apparel Co., Ltd., told reporters that the town of Dalang, Dongguan, where the company was located as the largest export base of wool production in the country, is still suffering from lack of work. Many enterprises are still recruiting workers.

This year, China's first foreign trade province, Guangdong's clothing, footwear, toys and other industries have thousands of enterprises with export success last year, the performance is zero this year.

Our reporter learned from various sources that these zero performance enterprises are mainly small foreign trade companies or small competitive manufacturing enterprises, while most large production enterprises are still able to maintain normal operation under the condition of reduced profits, and there is no big pattern of layoffs.