Appreciation Of RMB Against The US Is Bad, China'S Low Cost Exporters

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< p > with the appreciation of "a href=" http://sjfzxm.com/news/index_s.asp "RMB to us dollar < /a >, China's status as the world factory is weakening.

The appreciation of the renminbi and wage increases have prompted manufacturers to find cheaper production bases in Asia.

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According to the customs data released by China last Friday, exports increased by only 4.3% in December last year, down sharply from the 12.7% year-on-year increase in November, P.

Even if the distortion of export surging early last year is calculated, exports have not yet picked up as China had hoped.

China has hoped that exports will pick up as the global economy improves.

Many economists attribute the export surge to the hot money inflow that was mistakenly reported as trade.

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< p > the United States has long said that the renminbi is artificially underestimated, aiming to promote the "a href=" http://sjfzxm.com/news/index_s.asp "China export < /a >.

The United States believes that the renminbi is still undervalued.

China says that the yuan is approaching equilibrium level, and economists are divided on this issue.

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< p > anyway, stronger renminbi is hurting China's "a href=" http://sjfzxm.com/news/index_s.asp "exporters" /a, especially manufacturers of low-cost manufactures.

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< p > with the low end manufacturers abandoning China and choosing cheaper places, China's data show that in the first 11 months of 2013, China's electronic calculator exports fell 15%, umbrellas exports fell 12%, and lighters exported 21%.

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< p > Beijing hopes that Chinese exporters will shift to the upstream of the value chain so as to produce more high-tech products.

Beijing believes that this shift, as well as trying to reduce dependence on credit driven heavy industries, relies more on domestic consumption, which is crucial to the long-term success of the economy.

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< p > China Customs General Administration recently found in a survey that the appreciation of the RMB has greatly increased the cost of 2/3 of exporters.

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Zheng Yuesheng, spokesman for the General Administration of customs, said that in order to solve this problem, I can only advise exporters to actively upgrade products and produce higher value-added export products.

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< p > but China's national planners must monitor the pformation process while maintaining economic growth and ensuring that the unemployment rate will not rise.

China's economic growth has dropped from about two digits in recent years to about 7.6%.

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< p > many exporters complain that they are severely challenged by rising wages and other costs in recent years.

The appreciation of the renminbi is a headache.

The appreciation of the renminbi will cause Chinese products to become more expensive overseas, and the profits of enterprises in the local currency will be reduced.

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Hertzler, general manager of the "a href=" http://sjfzxm.com/news/index_s.asp "China Leather supplier" /a Uwe, said that the rising wages and the appreciation of the renminbi are a big problem for us. < p >

We have to pay the cost and wages in Renminbi, but the unit on the invoice is US dollars.

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< p > strong > RMB appreciation makes China's export prospects facing challenges < /strong > < /p >

< p > Chinese officials point out that stronger renminbi means cheaper imports.

This may help China achieve the goal of promoting domestic consumption, because imported consumer goods can be more affordable.

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Zheng Yuesheng, spokesman for the General Administration of customs, said that the appreciation of the renminbi will undoubtedly raise the export price and damage our export competitiveness. P

But...

The appreciation of the renminbi will also help reduce our import costs.

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< p > China is still the main exporter of finished products such as electronic products and machinery.

Despite cost pressures, China still accounts for more than 10% of Global trade.

According to data released on Friday, China's total import and export volume exceeded 4 trillion dollars in 2013, surpassing the United States as the world's largest trading nation.

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< p > foreign companies say that because of China's huge production scale and integrated supply network, they need to invest in China.

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Positec Group, a Chinese company, believes that Vietnam is a possible facility, but it is concluded that it is not feasible to set up factories in Vietnam at present, P.

The company produces Rockwell and Worx brand electric tools.

Duncan Duncan, chief executive of the group, said that the problem is the suppliers of raw materials, which are very important to us.

We can only set up low-end businesses in Vietnam.

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< p > the company has been trying to cut costs by reducing wage expenses.

Duncan said that in the past year, we invested more in automation than we did in the past 15 years.

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P, however, many other companies began to find cheaper production bases.

The latest available data show that in the first 11 months of 2013, overseas investment in China's manufacturing industry fell 5.7% to 64 billion 700 million US dollars, down 7.1% in 2012.

By contrast, Vietnam's foreign direct investment surged more than 80% last year as manufacturers scrambled to lower Vietnam's cost.

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< p > according to the results calculated by Karim Foda, a researcher at Brookings Institution, from June 2010 to November 2013, the value of RMB against the US dollar a href= "http://sjfzxm.com/news/index_s.asp" > appreciation > /a > amplitude (that is, considering inflation) was 18.5%, while that of the renminbi increased against some Asian currencies, especially the rupiah and India rupees, which fell sharply last year.

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In a customer report last Friday, ANZ Bank said that in 2013, the appreciation of the renminbi undermined China's export competitiveness.

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< p > according to a survey by Global Sources of Chinese companies, more than 500 Chinese companies surveyed said that the appreciation of the renminbi is the most pressing challenge facing them in 2014.

A year ago, the problem of a href= "http://sjfzxm.com/news/index_s.asp" > exchange rate < /a > was only fourth in the list of survey, after rising costs, price competition and slowing orders in Europe and the United States.

Global resources operates an online market for exporters.

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In response to rising costs, many manufacturers in the southern coastal areas of China began to shift production to cheaper inland factories or other countries such as Kampuchea, Bangladesh and Vietnam, P.

Li Peng, Secretary General of the Asia Footwear Association /a Asian (Footwear Industry Association), said that since the outbreak of the global financial crisis in 2008, Guangdong's shoe-making enterprises have pferred about 1/3 of their production to the mainland of China, and another 1/3 have moved to Southeast Asia in a. "Href=" http://sjfzxm.com/news/index_s.asp

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< p > he said that many a href= "http://sjfzxm.com/news/index_s.asp" shoe-making enterprises in the coastal areas are hardly profitable, and they have been struggling to survive.

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Chetan Ahya, an economist at Morgan Stanley in Hongkong, said that it is too early for manufacturers to shift orders from China in large quantities according to exchange rate fluctuations, but 2014 may become a more important factor in 2014.

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