Zhejiang'S Foreign Trade Enterprises Upgraded Under Trade Friction

"The sky will not collapse."

A person in charge of foreign trade enterprise told reporters on twenty-first Century 14 economic report.

On the afternoon of May 13th, the office of the US Trade Representative (USTR) issued a notice that it would seek advice and hold a public hearing on about 25% US tariffs on Chinese goods. 300 billion.

Previously, the United States has imposed a 25% tariff on 250 billion Chinese products. If all of them are landed, the vast majority of China's exports to the United States will be subject to customs duties.

A responsible official of a listed company in Hangzhou said that because the company's export volume was relatively large, "today's government department called to communicate, opened a day's meeting.

The government departments want us to submit the effect of adding tariffs to the company and the work that the government departments need to do.

In May 13th, Zhejiang Province officially announced the policy of reducing and reducing the burden of enterprises in Zhejiang province (the first batch in 2019), which is the fifth batch of enterprises to reduce the burden and reduce this policy since 2016 in Zhejiang.

In 2019, enterprises in Zhejiang province are expected to lose more than 200 billion yuan.

"We need to investigate, verify and calculate, so we expect that the second batch of policies will be released by the end of this year."

Lingyun, deputy director of the Zhejiang Provincial Department of economic and information technology, said in a press release on the reduction of corporate burdens in Zhejiang, 13.

Suspension of us orders

Li Jianwei, chairman of Hangzhou Europe and foreign import and Export Co., Ltd., 14, told reporters on twenty-first Century economic report that "the Sino US trade friction escalated, and the companies that had trade with the United States were the first to bear the brunt.

Take our company as an example, not only the foreign trade order has been reduced sharply, but also the volume of domestic trade orders has dropped sharply, and the domestic trade orders have dropped by more than 50% in the second half of last year.

"The export enterprises that make American orders, such as those supplied to WAL-MART, Costco, Messi stores and other large companies, will have a profit margin of only about 5%-10%. If the tariff is added to 25%, there will be no profit margin.

The way of delivery of many American customers is not FOB (Free On Board), that is, the paction based on FOB, but LDP (landed duty paid), that is, the seller takes all risks and costs.

We must deliver the goods to Customs after they have been cleared and paid taxes.

Li Jianwei said.

During this year's Canton Fair, when Li Jianwei talked with many export oriented companies, most of his peers said that this year was the most difficult year for business. Fortunately, there is no tax increase on textiles.

Although many foreign clients may leave overseas, even if they pfer their factories to Southeast Asia, their output will be limited. After all, China's textile industry chain is the most complete.

Many foreign trade companies have suspended orders from the United States.

Ye Junxian, general manager of Hangzhou Qifeng trade, told reporters on twenty-first Century economic report 14, "the most direct impact now is that the US dollar exchange rate has gone up. After exchanging foreign exchange, our income is high, and the short-term benefit will increase.

Our exports to other countries may have short-term benefits.

Other domestic factories or trading companies will increase competition for Europe and other markets.

Ye Junxian said that small companies can only follow the direction of customers and direction, and watch it change, because the pformation of domestic sales or opening up other new export markets is not easy.

"The order for us to export to the US market has long been in a state of stagnation. After the completion of the order before the Canton Fair, the latter must be re priced, so we can only suspend it now.

By the end of last year, the company had seized some of the goods ahead of time.

He said.

Traditional exporters aim at cross-border electricity providers

In May, in just two weeks, the renminbi has dropped nearly 2%.

A Chinese bank trader told the economic news reporters twenty-first Century 14 days that the depreciation rate of RMB is expected to expand in the context of the continued escalation of Sino US trade frictions. However, the performance of RMB is still stronger.

In this exchange rate situation, what are the Countermeasures for the third party payment companies that have made efforts to cross border payment in recent years?

A Guangdong payment company official said, "exchange rate fluctuations in our expectations, at the end of last year, the exchange rate also approached 7.

This fluctuation is around 1.5%, which has little impact on cross-border electricity providers.

In addition, we are doing cross-border RMB business, so the impact is very small.

Focusing on cross-border payments, a senior executive told reporters 14 days ago that many traditional foreign trade exporters are now consulting how to do cross-border electricity business because the current US $200 billion tax increase has clear statistical basis for commodity categories and trade channels, and cross-border electricity providers have not yet been affected.

"But Trump said before he wanted to quit the Universal Postal Union, the cost of logistics would have some impact.

Just relative tariffs, logistics costs are more controllable. "

He said.

At the same time, he admitted that the company's cross-border e-commerce payment business was affected by the escalation of trade frictions.

For example, before the company could subsidize cross-border payment of small fee expansion business by exchange spreads, it may be more difficult now.

"We are also studying countermeasures."

Export enterprises will become the focus of Zhejiang's next round of lightening.

According to official data released by Zhejiang, in 2016, the burden of enterprises in Zhejiang was 101 billion yuan, 125 billion yuan in 2017 and 165 billion yuan in 2018.

In 2019, enterprises in Zhejiang province are expected to lose more than 200 billion yuan.

Lingyun 13 at a news conference said that following the fourth batch of enterprises in October last year to reduce the burden of lowering the Zhejiang policy, the provincial burden reduction immediately launched the fifth batch of enterprises to reduce the burden of this policy document research and drafting work.

Such a frequent policy of reducing the burden of enterprises, we can see that Zhejiang's firm determination to stabilize the economy.

The first batch of lightening measures this year included not only the implementation of the national tax reduction and tariff reduction policy, the value added tax rate and the implementation of inclusive tax relief policies for small and micro enterprises, but also 6 Zhejiang provincial tax reduction and tariff reduction policies.

Since May 1st, the proportion of the proportion of the basic old-age insurance units in urban workers above 16% can be reduced to 16%, and the proportion of Zhejiang's implementation of 14% has been lower than the national average.

In order to further enhance the sense of enterprise acquisition, Zhejiang has to increase its pressure: first, the enterprises in the manufacturing, pportation and construction industries will reduce social insurance contributions at the stage of implementation.

The two is to take part of the fund from the unemployment insurance fund and return it to the troubled enterprises at once.

Three, it is clear that all localities must not take any measures to increase the actual burden of payment for small and micro enterprises, and they must not concentrate on their historical arrears.

Four, we should continue to reduce unemployment insurance and work-related injury insurance premium rates.

Lingyun said that the Zhejiang provincial government will study, verify and calculate the second batch policy in 2019 before the end of the year.

"For example, export enterprises are more difficult now, then can some burden reduction be carried out on the freight forwarders in Zhejiang, so as to reduce the burden of export enterprises?"

Lingyun said.