Small Businesses In China Face The Pressure Of RMB Appreciation

Every year in October, some foreign trade enterprises in Guangdong and Jiangsu and Zhejiang provinces are busy. Foreign Christmas orders are coming like snowflakes.

This year's October is almost half a month away, and a large number of enterprises are sighing: "in the expectation of RMB appreciation this year,

The topic of "RMB to us dollar" in the first more than 10 days of the double festival is once again a dazzling headline appearing in the layout of major media.

According to the latest data from China foreign exchange trading center, the central parity rate of RMB against the US dollar in October 8th was 6.6830, compared with 6.7011 in September 30th before the "eleven" holiday, and a slight increase.

Therefore, experts say: "this is not good news for any Chinese enterprise engaged in Christmas merchandise export."

At the same time, the pressure of RMB appreciation has not been reduced.

"These days have begun to receive orders, but this price really does not know how to talk."

This is what a business leader said in his interview with CCTV in October 10th.

"Nobody knows what will happen next year's exchange rate market, so sometimes they would rather lose the order than lose money in it."

He said.

"Exporters are in a very awkward position now, facing the appreciation of the renminbi.

Some international monetary researchers demand that the appreciation of the renminbi become more and more intense.

"The price of the same commodity last year will rise about 10%.

For long term cooperative customers, about 2% of the price increase customers usually accept, once the above extent is exceeded, the guests will turn to other producers.

Now the price of export commodities is very sensitive, so it is very possible for enterprises to raise their prices in exchange for losing this order.

In particular, Christmas products, which are low in technology, are facing not only domestic competition but also international competition.

Many Yiwu business owners surveyed during the Guangzhou fair said.

"According to the price initially discussed, how much is still guaranteed a profit of 10%, but when the payment is finished, there is little profit.

Originally we expect the profit to be 2 million yuan, and now there may be only a few hundred thousand less.

In fact, that is the case.

Products like Christmas products have been reduced to 3% from Maori run, which is 15% to 20% of the original products. In addition, energy saving and emission reduction, workers' salary increase and so on, enterprises are facing more and more pressure.

The reporter has learned that the most realistic and direct impact on the factory that makes the bill is undoubtedly the reduction of Renminbi in Chinese enterprises when the settlement is settled, and how much percentage point the exchange rate will appreciate.

For the export business, it is a few months ago to pick up the list, the other is not to negotiate with you to negotiate the value of RMB appreciation, the depreciation of the dollar to you.

If the interests of exporters are impaired, agents will also lose.

The profit of Chinese garment enterprises is between 3% and 4%, and the appreciation of RMB exceeds 2%.

Domestic profit is 10% overall.

For these export enterprises, if the renminbi appreciates again and again, the pressure will definitely increase further. They can only consider pferring to the domestic market.

Small and medium-sized enterprises doing export business are exceptionally cold this winter.

What is more sad is the poor employees.

The pformation of enterprises requires the support and coordination of the government's overall policies.