Two New And Old Markets For Foreign Trade In Guangdong

"Maintaining stability" has become the consensus of the foreign trade system of the whole country in 2009.

The foreign trade system of Guangdong Province, the first province of foreign trade, has also launched the "2009 stable development" battle.

An official of the Guangdong Provincial Department of foreign trade and economic cooperation told our reporter that in 2008, especially in the last two months, the foreign trade situation was grim. In a recent inter provincial economic and trade work conference, 2009 was regarded as "the most difficult year". These upcoming measures "will be applied urgently to specific places and industries."

The official said that Guangdong will "grasp both hands" to reduce the impact of the weakening of the traditional market, and speed up the expansion of the emerging market and expand the share of the domestic market.

A foreign trade policy in Guangdong Province, a person from the Department of foreign trade and economic cooperation, told reporters that before and after December 2008, the office conducted a large-scale investigation. The survey results showed that the reduction of foreign demand directly led to a reduction in customer orders. Customers refused to accept a substantial increase in export prices, and the time period for orders was shortened. Some customers even tried to cancel their original orders. The fourth quarter orders decreased by 20-25%, while the number of orders in 2009 decreased by more than 30-35%.

In the survey, the research group specially formulated the "list of cost increase for export enterprises".

This list suggests that, due to the cumulative effect of inflation in recent years, the acceleration of raw material prices in 2008 has led to an increase in the cost of raw materials by about 10-12%; the appreciation of the renminbi has affected the cost increase or the profit has dropped by about 7-8%; the implementation of the new labor contract law has increased the cost by about 4-5%; the increase of wages and welfare benefits has increased by about 3-4%; the strict environmental protection policy has increased the cost by about 3%; the commodity export tax rebate adjustment has affected the cost about 1-2%; the ledger has guaranteed the gold price to turn to affect the cost about 1-2%; the "two taxes in one" urban land use tax levying and other taxes and fees reform affects the cost about 1%; other daily operating expenses increase, affecting the cost to increase about 3-4%.

Overall operating costs increased by about 35%, and overall profits fell by 25% overall.

The hall recently submitted an analysis document to the Guangdong provincial government for three key points: first, it should focus on supporting enterprises with good prospects for development, independent brands, independent innovation, intellectual property rights and large market share. While continuing to develop traditional markets such as the US, Europe and Japan, it will intensify efforts to open up emerging markets such as Africa, South America, the Middle East and Russia, and reduce the market risk of exports. Two, support small and medium-sized foreign trade and economic enterprises to carry out loan guarantee, structural adjustment, energy conservation and emission reduction, technological innovation, and encourage competitive labor-intensive products to expand general trade exports; three, actively expand imports, focus on supporting the import of energy and resource raw materials and the import of advanced technology and equipment in Guangdong, and make full use of international resources. Reporter learned that Guangdong's foreign trade

A person familiar with the matter said that the proposal has been recognized and supported by the relevant leaders in the province and is the keynote for the domestic and foreign trade policies in 2009.

Guangdong's foreign trade pformation directly affects Guangdong's overall economic situation.

According to statistics, Guangdong's dependence on foreign trade ranks first in the country for 23 consecutive years, reaching 150.99% in 2007 (87.94% of export dependence), two times the national average.

Against this background, Guangdong attaches great importance to foreign trade.

The crisis faced by Guangdong enterprises and Guangdong's foreign trade has also brought about an opportunity for pformation.

To cope with the rapid decline of the US and European markets, the officials stressed that it is the most important way to actively develop new markets, make up for the losses caused by the shrinking demand in Europe and the United States, and reduce dependence on traditional markets such as Europe and the United States.

However, Chen Lian, general manager of China Xinbao Guangdong branch, told reporters that encouraging enterprises to develop new markets, enterprises must also see that emerging markets to some extent mean higher risks.

An official from the Guangdong branch of the China Import and export bank also told reporters that foreign importers are hard to borrow money in their own banks, and they often offer credit.

Chinese enterprises become financing tools for overseas customers.

All these can lead to risks.

Mr. Chen told reporters that a survey conducted by the company in Guangdong's export enterprises found that one of the most important concerns was that there was no order, two was no cash flow, and three was that the loan was defaulted by the buyer.

According to statistics, the company's compensation rate in 2007 was still below 50%, and in 2008 it was more than 70%.

At the same time, when the export gravity center is shifting to emerging markets, the information obtained by reporters from multiple channels shows that Guangdong's foreign trade structure is also accelerating.

In the 1-11 month of 2008, the export of mechanical and electrical products and high-tech products increased by 17.6% and 17.2% respectively, and their overall driving effect on foreign trade was further enhanced.

Guangdong's exports to Africa, Latin America and ASEAN increased by 2 to 4.

At the same time, the value-added rate of processing trade continues to rise, and the spillover effect is more obvious.

Besides, the quality of absorbing foreign capital in Guangdong has been further improved in 2008.

Among them, in 2008 1-11 months, the actual amount of foreign investment absorbed by the service industry increased by 15.27%.

The actual amount of foreign investment absorbed by wholesale and retail businesses and leasing business services increased by 77.44% and 63.11% respectively.

A data obtained by reporters also showed that the amount of contractual foreign investment approved by Guangdong province in 1-11 months was 18.74%, but its actual foreign investment increased by 11.04%.

In addition, the actual amount of foreign capital absorbed by Sino foreign joint ventures has increased by 25.25%.

Wang Zhengyi, director of the Department of international political economics of Peking University, believes that the steady growth of foreign investment actually means the strength of local development is still strong.

Wang Zhengyi pointed out that local governments should also pay attention to maintaining the steady growth of foreign investment in contracts, which reflects the strength of local development.

Editor in charge: Yang Jing