Japan'S Sharp Lowering Of Export Prices Has Hurt South Korea.

According to Korean media, Japanese enterprises will sharply lower export prices because of the depreciation of the Japanese yen, and the export trade of South Korea will be hit hard by it.

The trade association stressed that

In the long run, Korean export enterprises must be vigilant, pay close attention to the trend of the yen exchange rate and make efforts to enhance competitiveness.

As report goes,

In the report on the depreciation of the yen, it is pointed out that if the yen fell 1% against the won, South Korea's exports would be reduced by 0.49%.

Especially after July this year, Japan formally lowered the price of its exports and weakened it.

In the third country market, the share of Korea's overseas market will also be reduced.

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The pressure of China's textile industry to stabilize the market share is becoming more and more serious. Textile enterprises should further enhance the capability of pnational resources allocation in line with the international procurement demand and the trend of global industrial layout, and create a coordinated manufacturing industry system at home and abroad.

At the same time, we should increase awareness of exchange rate risk and actively avoid exchange rate losses.

In recent years, the share of China's export textile and apparel in the Japanese market has been declining, and the supporting role of Japanese market for the export growth of China's textile industry is also gradually decreasing.

According to Japanese customs data, China accounted for 69.9% of Japanese textile and clothing imports in 2014, down 5.1 percentage points from 2011, while China's market share in the US and EU dropped by 1.2 and 3.3 percentage points in the same period.

China's market share in Japan dropped by 3 percentage points over the same period of 1~7 this year, which is also higher than that of the United States and the European Union.

According to the customs data of China, in 2014, the total export volume of textiles and clothing in Japan accounted for 8.3%, which was 2.7 percentage points lower than that in 2011, and the proportion of Japan's share decreased to 7.4% in 1~7 months.

The proportion of ASEAN increased by 4.1 percentage points to 12% in 2012~2014, and 1~7 has risen to 12.4% this year. Japan's position as the third largest export market of China's textile industry has been replaced by ASEAN.

According to the latest customs bulletin, in 2015 1~8, China's textile and clothing exports totaled 184 billion 450 million US dollars, down 4.6% from the same period last year.

The decrease in August was 5.6%, narrowing 4.8 percentage points compared with July, but the 1~8 decline is still 0.4 percentage points higher than that in 1~7.

In the traditional export market, the United States is the only country that has accelerated growth. 1~7 textile exports to China increased by 9.8% over the same period last month, pushing the export growth by 1.5 percentage points. The European Union was affected by the continued depreciation of the euro, and exports decreased by 10.6% over the same period last year.

The decline in exports to Japan was the most prominent, with a drop of 12.9% in 1~7 months, accounting for 24.7% of the total export volume of the industry, and a 1 percentage point increase in the export growth of the industry. China's share in the textile and garment import market in Japan decreased by 3 percentage points in 1~7 months.

There are two main reasons for the continuous decline in competitiveness of textile and apparel exports to Japan: the first is the change in the pattern of productivity distribution for Japanese exports of textiles and clothing.

In recent years, the comprehensive cost of China's textile industry has been rising, the price of export products is rising, the profit space of export processing enterprises is continuously compressed, and the regional trade cooperation relations, such as the p Pacific Partnership Agreement (TPP) and other regional trade cooperation relations are in the way, the cost and policy of Southeast Asian countries are more obvious than the advantages.

Japanese textile and garment enterprises, as well as China's enterprises engaged in exporting to Japan, have been increasing investment in factories in Southeast Asia. Orders for Japanese buyers also flow to these areas.

Two, the impact of the yen depreciation is outstanding.

Affected by Japan's economic stimulus policy, the yen's sustained and sharp depreciation trend has been evident in recent years. From the end of 2012 to the end of 2015, the cumulative depreciation rate of yen against the RMB average exchange rate reached nearly 40%.

As the currency exchange rate trend of Southeast Asian countries is not as stable as that of the RMB, the depreciation rate of the Japanese currency against Vietnam shield is significantly less than that of the RMB, and the Indonesian shield also appreciates, compared with the further weakening of the competitiveness of China's export products.

Influenced by the above factors, China's textile industry has greatly increased its export prices in recent years, and its export volume has definitely decreased, and its market share has been gradually eroded by Southeast Asian countries.

According to Japanese customs data, the price of imported clothing and clothing from Japan increased by 31.2% in 2012~2014, which is 10.9 percentage points higher than that of Japan's import from ASEAN.

In 2012~2014, Japan's textile imports from China decreased by 22.4%, while the number of imports from ASEAN increased by 45.2% during the same period. The import volume in Japan from 1~7 this year is basically the same as that of the same period last year.

The market share of Southeast Asian countries in Japan has increased significantly. In the 1~7 months of this year alone, Vietnam, Indonesia and Bangladesh accounted for a total increase of 2.4 percentage points in Japanese textile and clothing imports, of which Vietnam accounted for 1.4 percentage points.