Foreign Trade Companies Say They Haven'T Seen The Benefits Of Depreciation.

< p > Yang Xiaochuan is the deputy manager of Liucheng chemical group Limited by Share Ltd Guangdong chemical company, which is the largest insurance powder manufacturer in the world and the largest exporter of insurance powder.

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< p > despite the ups and downs of the RMB exchange rate over the years, Yang Xiaochuan is still impressed by the "a href=" http://www.91se91.com/news/index_c.asp "currency devaluation" /a "in the neighboring countries since last year.

Last year, the biggest devaluation was India and Japan, reaching 10%~20%, Malaysia was 8%~10%, Thailand reached 6%~8%.

In the same period, the yuan appreciated against the US dollar by about 3%.

Especially from the second quarter of last year, appreciation has also entered a fast track.

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< p > then, from February 18th this year, the RMB depreciated rapidly against the US dollar by about 1.4%, which has changed steadily since 2012.

On the last trading day of February, the RMB exchange rate depreciated to 10 in 6.1808 days.

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What P depressed him was that his company suffered from exchange rate losses caused by the rapid unilateral appreciation last year, and because it had locked the exchange rate with the bank, he did not enjoy any additional benefits during the rapid devaluation process.

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< p > < strong > profit loss < /strong > /p >

Less than P, 60% of Yang Xiaochuan's sales came from exports. In 2013, the total settlement amounted to about 60 million US dollars.

Last year, the appreciation of RMB continued to bring about a loss of exchange of about 600 thousand ~180 million dollars.

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< p > for the expectation of unilateral appreciation of RMB, his company locked the exchange rate with banks earlier this year.

The general bank will give them a larger exchange rate than the prevailing exchange rate.

Before February 19th, 1 US dollars could basically be exchanged for 6.05 yuan, and the bank offered them a preferential exchange rate. Based on this, we added a few basic points, roughly 6.06~6.08, if the appreciation is made, the banks will operate the risk of digestion.

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Since P February 18th, companies that have locked the exchange rate can only watch the loss of profits.

Finally, after losing about 500 thousand yuan profit, Yang Xiaochuan's company negotiated with the bank to speed up the settlement rate and change it to real time settlement.

They can not help wondering: if the short term depreciation is going on, then it will start to revalue rapidly. Is it not in vain to terminate the contract? < /p >

< p > Yang Xiaochuan's experience can be regarded as the general situation of the large foreign trade enterprises who are in the industrial area under the unilateral appreciation cycle in the past two years.

In the course of this devaluation, foreign trade enterprises with relatively large volume of pactions did not feel the positive impact of this cycle of depreciation, except for small export enterprises that settled immediately.

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< p > last year, Yang Xiaochuan's entity business not only suffered the exchange loss caused by the rapid appreciation of RMB, but also increased the labor cost by a rigid increase of 10%.

Only locally purchased raw materials slowed down and the pressure dropped slightly.

On the whole, profit margins have been squeezed.

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"P," he told the newspaper, "if the exchange rate reform can liberate the RMB Fluctuation Zone, it will not only crack down on illegal hot money, but also reduce the unilateral appreciation expectation of RMB. If we do not get that fast, it will give us more energy and space to think about pformation."

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< p > < strong > change unilateral a href= "http://www.91se91.com/news/index_c.asp" > appreciation > /a > expectation < /strong > /p >

Xiao Youyuan, general manager of GREE electrical appliances overseas sales company, encountered the price cut request from customers, and the additional workload that might be adjusted to the price. P

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< p > Xiao Youyuan said they have the distinction between big customers and small and medium-sized customers.

Large customers are generally old friends who are long-term cooperation. The order is also in 1~3, and everyone is to lock in the exchange rate. If they fluctuate, they will bear their losses. The contract signed by small and medium-sized customers will stipulate that if the floating rate of RMB exceeds 2%~3%, the price will need to be adjusted.

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Xiao Youyuan has experienced the two short devaluation of P in 2008 and 2012.

His judgement is that the trend of long-term appreciation of RMB will not change, and the direction of foreign exchange reform will not change.

If the current devaluation trend continues for some time, they will adjust the proportion of long-term lock in customers and small and medium-sized customers, from the current 4 to 6, to 5 to 5, in order to reduce losses.

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< p > to change the situation of "rise, enterprise bitter, fall, enterprise also bitter", more and more people begin to suggest that we can achieve the same goal at lower cost, such as timely launching of foreign currency futures products and opening the daily trading range of RMB / US dollar, so that enterprises can protect their interests in appropriate ways regardless of depreciation or appreciation.

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< p > reporters have learned from authoritative channels that as early as the beginning of this year, there were already high-level demands for "giving full play to the support role of exports to the national economy". This year, some substantial export promotion policies may be introduced to change the unilateral appreciation expectation of RMB or be included in it.

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< p > March 8th, the data released by the General Administration of Customs showed that China's export reversal in February, a decrease of 18.1% over the previous year, is far below market expectations, which is in sharp contrast to the expected increase of 10.6% in January. In February, imports increased by 10.1%, almost unchanged from last month, with a trade deficit of 22 billion 980 million US dollars.

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From P to 1~2, China's exports decreased by 1.6% over the same period last year, and imports increased by 10% compared with the same period last year, and the trade surplus narrowed from 79.1% to 8 billion 890 million US dollars.

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< p > < strong > not relying on < a href= > http://www.91se91.com/news/index_c.asp > exchange rate < /a > survival > /strong > /p >

The depreciation of RMB P is also a double-edged sword for export.

If it is a labor-intensive industry, where there are complete industrial chains and spare parts supply, currency devaluation will bring competitive advantages. The industrial chain is not so perfect, and many industries that still need to import parts and components will not be able to change their competitiveness.

Taking the household appliance industry as an example, Xiao Youyuan said that China still has some competitiveness because competitors such as Thailand and Japan have not yet formed such a complete supply chain system.

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After P has entered the appreciation channel, some foreign trade enterprises have begun to think of ways to reduce costs and enhance competitiveness.

Reducing dependence on labor, improving product R & D capability and improving customer experience are the direction they are working on, such as improving automation level.

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< p > Yang Xiaochuan's enterprises are hard to find ordinary chemical workers. Since the second half of last year, enterprises have purchased a batch of automatic packaging machines, raising the proportion of machine parts from zero to 30%~40%, and this year's goal is to increase to more than 50%.

Management posts are no longer staffed in principle. If there are new projects, the main employees will be called.

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< p > Xiao Youyuan's company has also set up an automatic equipment department to expand the use of robots.

In their view, China's demographic dividend is disappearing, which is an inevitable trend.

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Zhou Hongli, an economist at DBS bank, noted that since February 19th, the central bank has publicly stated that it will expand the trading range of the RMB against the US dollar this year, and the exchange rate between the offshore and offshore RMB against the US dollar will gradually converge.

"Similar situations have occurred in April 2012 (that is, the day to day fluctuation of the RMB against the US dollar from 0.5% to 1%), which means that the further expansion of the renminbi's volatility is imminent, probably before April."

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< p > no matter RMB appreciation or depreciation, it is a technical issue, and the most important thing is export competitiveness.

It is unrealistic to expect labor, capital and exchange rates to be as cheap as twenty or thirty years ago.

Yang Xiaochuan said to "First Financial Daily": "what enterprises need to do is to practice hard work hard."

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