Export Enterprises "Do Not Waste Renminbi Depreciation"

Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce and international trade and economic cooperation, said that the depreciation of RMB 1%~2% would be a "long drought" for foreign trade enterprises.

Labor-intensive foreign trade enterprises rely on quantity to fight the market, making a difference of 1 cents and earning 1 cents.

Bai Ming suggested that exporters should not waste the depreciation of the renminbi, and strive for time for the pformation and upgrading of the trade.

But at the same time, do not go from one extreme to the other extreme.

"Excessive depreciation of the RMB will bring capital outflow and delay the internationalization of RMB."

Over the past few years, the renminbi has appreciated unilaterally against the US dollar. Because there are no other channels for easing up, all the pressure is concentrated on the exchange rate, and export enterprises are more uncomfortable.

At present, the domestic economy has been in the sensitive zone of medium and high speed growth. Will the extent of depreciation bring impact to real estate, stock market, price, interest rate and local debt? Will it cause systemic impact?

Bai Ming is worried that in the past five years, the unilateral appreciation of the RMB against the US dollar is actually a "rising or falling down".

Now, if we go into the devaluation channel, will it lead to "external derogatory rise"? At present, the RMB nominal exchange rate has depreciated more, the currency is still strong, and the appreciation depends on parity purchasing power.

"The renminbi can be depreciated appropriately, in the name of necessity.

Digestion part of the domestic monetary policy digestion part of the exchange rate through foreign exchange to digest part of the depreciation.

Bai Ming suggested that several channels should simultaneously flood and defuse the depreciation of the RMB, not all of them on the exchange rate, which would help to form a healthy open economy, otherwise the importing enterprises could not bear it.

As for the price of commodities, compared with the unilateral influence of the US dollar, Bai Ming is more inclined to be the "drum beating and flower spreading" role initiated by China and the United States.

Over 90% of the world's commodities are denominated in US dollars, and the appreciation of the US dollar will inevitably suppress commodity prices.

But China's demand growth has slowed down, after the bull market commodity prices in fact, has already included the demand for the next few years.

At that time, China's real economy grew faster, and the US financial derivatives developed, both sides played a role together, pushing up commodity prices.

Now that China's economy has entered a new normal, the growth rate has slowed down, the US has withdrawn from the quantitative easing policy (QE), and the interest rate increase is expected to increase.

"Before China and the United States pushed up the price of commodities, they also pushed pressure on commodity prices as the economy changed."

Bai Ming said this is the reason for the decline in commodity prices.

One family

The salesman of the company said it was a tragedy for Russia this year.

"In retrospect, I was glad last year that I failed to make a client in Ukraine, but this year I am in such a predicament."

Starting in August 2014, the underwear factory's business in Russia has been on the decline. Many of the original orders have been retreated or not issued.

"The money has been dragging, or a little more.

Now that money doesn't know how to get it back, even if you don't dare to do it, you've been losing money for months.

The salesperson said, "I really don't know when the situation will improve. If the exchange rate can not turn around in half a year, we are going to turn off the store and concentrate on the development of the Guangdong plant."

A steel ball production and export enterprise, despite its brilliant achievements in 2014, is still in the business.

The staff admitted that "because of the collapse of the rouble and the euro and the ups and downs of the US dollar, we also suffered slightly.

As the main battlefield of our sales, Russia has been forced to suspend cooperation with our customers for many years due to the fall of rouble.

The order that was originally said has also been stranded repeatedly, even to the end.

The letter of credit originally opened by European customers had to delay delivery three times and again.

It is also the work that the enterprise has to repeat and do in the near future.

"Besides, we have been talking about orders for more than half a year, but it is hard to confirm that the terminal providers are waiting, the customers are waiting, and we are in a hurry."

This is the true portrayal of Chinese export enterprises under the fluctuation of exchange rate.