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    Canton Fair: Concern About Economic Recovery And Depreciation Of RMB In Europe And America

    2014/4/16 13:18:00 37

    Canton FairEuropean And American EconomiesRMBDepreciation

    The first phase of the Canton Fair has just started today, and there is no clear answer. However, we may look for clues from yesterday's official news conference held by the Canton Fair, as well as the feedback from some foreign trade enterprises.


      Keywords 1: steady progress


    From the press release report of the Canton Fair, we understand that under the general keynote of the "Canton Fair" in the "steady progress, reform and innovation", the 115th Canton Fair has basically not changed in terms of the exhibition pattern and booth arrangement compared with the previous session. The number of booths has increased slightly and the number of exhibitors has increased slightly, and 50 exhibition areas are still being set up according to 15 categories of commodities. A slight change in the export exhibition area is the addition of outdoor spa facilities and accessories and swimming pool equipment to the exhibition area, and renamed the exhibition of iron ornaments and outdoor spa facilities, and the booth size increased from 70 to 230. In the import exhibition area, the first phase of the first phase set up an electronic product innovation exhibition area, focusing on attracting overseas high-tech, innovative design of electronic products business exhibitors; while the third phase of import exhibition increased the theme of home textiles.


       Keywords 2: Europe and America Economic recovery


    Easter is a very important holiday in the Western year. This year's Easter is April 20th, coinciding with the first issue of Canton Fair. A spokesman for the Canton fair said that this will have a certain impact on European and American businessmen.


    Easter is a day to commemorate the resurrection of Jesus, and is the most important Christian festival. Christian western countries usually spend a few days before and after Easter. For example, the United States usually includes three days off on weekends, and Canada and many European countries usually have 4 days off. In addition, China's Hongkong will also have 4 days off during Easter, and this year's holiday will be from April 17th to 21st.


    Although the first phase of the Canton Fair coincides with Easter, some European and American buyers may abandon the purchase of Canton fair because of festivals, but the "rhythm" of economic recovery in Europe and the United States appears to be emerging. April is the peak season of Hongkong's exhibition. Zhou Qiliang, vice president of Hongkong's TDC, said in a media interview that the signs of economic recovery in Europe and America have recently appeared in the Hongkong exhibition market.


    He said that the recent Hongkong exhibition procurement "active", the number of buyers will continue to grow. Affected by the global economy, Hongkong's exhibitions have been driven by buyers in emerging markets in the past few years, but buyers in some European countries have recently become active. American buyers have gained double-digit growth in the recently concluded Hongkong International Spring Show, and the signs of recovery are clear.


       Keywords 3: RMB depreciation


    "Since the beginning of this year, the RMB has begun to depreciate, and then its exchange rate has entered a two-way fluctuation channel. Therefore, during the current Canton Fair, some foreign businessmen may devalue the RMB as a gimmick, and exhibitors should be well prepared for this. Mr. Hugo, an exhibitor from Canton Fair in Shanghai, said to Mr. Wang.


    He disclosed that some customers of his company had recently begun to ask for price cuts on the grounds of devaluation of the renminbi. "Their reason is:" when the renminbi appreciated, you raised the price to sell me, now the renminbi depreciates, your price also must drop! " In the face of this requirement, I think foreign trade enterprises must have an external caliber within the company, for example, the renminbi is not always depreciating, but entering a two-way fluctuation channel. We are also facing great exchange rate risk. Mr. Yan said.


    He said that such a request would be basically a cooperative old customer.


       Keywords 4: the decline of traditional trade?


       Customs head office China's export and import situation in the first quarter was released in April 10th, and imports and exports, exports and imports all declined.


    A spokesman for the Customs General Administration said that this indicated that the foreign trade did encounter some difficulties, but it could not overestimate these difficulties, because in the first quarter of last year, there were some special factors in China's foreign trade import and export, which pushed up the year-on-year base, so it could not be simply recognized as a decline in China's foreign trade.


    However, a foreign trade analyst told Hugo net that although it is impossible to judge that the traditional foreign trade really began to decline, but from a large number of foreign consumers through e-commerce channels from China across the border online shopping, as well as more and more enterprises to do online cross-border small wholesale, perhaps we can see that the traditional foreign trade recession should not be far away.


    "Cross-border e-commerce retail outlets and small orders export" have already taken away many orders from traditional foreign trade enterprises. In addition, many cross-border retailers are shifting orders to Southeast Asia, India, Bangladesh and other countries, and snatch many orders from Chinese enterprises. There are so many consumers around the world, so I think that after the continuous diversion of orders, the decline of traditional Chinese foreign trade is a big trend, unless we can start to transform the high-tech, value-added products such as export aircraft, large machinery and equipment to the European and American countries. The source said.

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