Interpretation: Why Do Textile And Clothing Benefit From The Depreciation Of The RMB?

After the biggest decline in the renminbi against the US dollar in August 11th, the yuan fell again in August 12th.

Xiaobian learned from foreign trade enterprises in Hangzhou, Ningbo and other places that the issue of exchange rate is a matter of great concern to enterprises and is also a topic of complaint.

In the first seven months of this year, China's exports to the EU, Japan and other major markets were all down by 10%, thanks to factors such as the appreciation of the renminbi against the euro and yen.

Foreign trade enterprises and analysts believe that the adjustment of the exchange rate is a great advantage for textile, clothing, instrumentation and other labor-intensive and export oriented enterprises.

However, the decline in exchange rate is still unable to solve the fundamental problem of sluggish foreign trade.

Favorable foreign trade enterprises

"I was discussing the exchange rate with friends around yesterday," Zhang Weifu, deputy general manager of Zhejiang China Light Textile City Group, told Xiaobian.

In his view, the depreciation of the RMB exchange rate is beneficial to the textile industry from a macro perspective, but it will not change in the short term.

According to industry related measurement, textile

Benefiting from the depreciation of the renminbi and devaluation of RMB by 1%, the net profit will be increased by 2-6%.

Fang Guobao told Ben Xiaobian that the impact of the exchange rate on exports will not be effective in the short term. The exchange rate of the countries concerned is also changing from the market where the main products are exported to Brazil, Japan, the European Union and Russia.

However, it is certain that the exchange rate increase will enhance the competitiveness of the company with other countries.

Fang Guobao said that the competition pattern of the industry is constantly changing. In the future, we need to increase investment in price and new product development. The price here includes exchange rate and cost, and exchange rate is the most easily controlled and relatively immediate.

"For example, the Dollar Tree in the US, the 100 yuan store in Japan and other low-priced, cost-effective retail stores will be more sensitive to exchange rate fluctuations, and exchange rate adjustments will often take effect in a month.

The high-end products are less affected, because the orders of these customers continue until next year, and the order has been completed for half a year, "Fang Bao Guo said.

Zhang Jianping, director of the International Economic Cooperation Research Institute of the national development and Reform Commission, told Xiaobian that foreign trade enterprises have complained about the RMB exchange rate for a long time.

This time, the central bank adjusts the pricing method of the middle price in accordance with market expectations timely, or moves towards the direction of marketization, which is helpful to labor-intensive foreign trade enterprises.

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This also allows foreign trade enterprises at least in the face of the European Union, Japan and the United States market, and even some developing countries market, can have a breathing space, not as much pressure as in the past.

In Zhang Jianping's view, the adjustment of exchange rate is related to the current grim situation of foreign trade, but it is not a decisive factor. The exchange rate adjustment is a comprehensive consideration. On the one hand, there are factors of foreign trade. On the other hand, China's financial internationalization and RMB internationalization are accelerating. Postponing the introduction of special drawing rights is also a stimulating factor.

International demand has greater impact.

However, in the view of foreign trade enterprises, the adjustment of exchange rate has not yet solved the fundamental problem of sluggish foreign trade.

Zhang Weifu said, in fact, the exchange rate alone can not solve the problem fundamentally.

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In terms of products, exports depend mainly on quantity rather than on the added value of products. Therefore, international demand has greater impact on exports, and the international demand is also important except for the factors of the product itself, which can play a fundamental role in exports.

"Apart from the renminbi, the currencies of other countries are also changing, for example, the currency changes in Brazil are also very large, which will greatly affect the enthusiasm of foreign customers. Many countries' customers are still reluctant to place orders," said Zhang Wei Fu.

Fang Xiaoqiang, general manager of Yiwu Long Fei import and Export Co., Ltd. told Xiaobian that although the depreciation of the RMB is indeed a good news, it is too early to say that the situation will definitely improve. After all, the foreign market is weak and the whole environment is not good.

The main problem is that the fluctuation of RMB prices in foreign markets can even be ignored.

The strength of foreign market consumption is the key.

In his view, before the foreign trade data fell too seriously, it is not realistic to use foreign exchange rate to stimulate foreign trade.

The head of Ningbo seal group, which focuses on the import and export of daily necessities, also told reporters that the depreciation of the exchange rate is a good thing for foreign trade, but the long-term trend needs to see the further trend of the RMB exchange rate.

Zhang Jianping said, fundamentally speaking, China's foreign trade has been the first global market share, and the potential of several traditional markets such as the United States, Japan, the European Union and ASEAN has basically been excavated, but not enough in developing new markets, especially in the "one belt and one way" country.

But now it is new.

And volatility is relatively large, which is a headache for foreign trade enterprises. Although the exchange rate is helpful to foreign trade enterprises, especially labor-intensive foreign trade enterprises, the decisive factor is market demand.

The central bank spokesman also said recently that from the international and domestic economic and financial situation, there is no foundation for the continued depreciation of the RMB exchange rate.