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From Canton to see the Chinese economy

May, 10 2010 Updated


BEIJING, May 10, according to the latest issue of the Hong Kong Economic Herald News, the 21-day 109 th China Import and Export Fair (hereinafter referred to as "Fair") officially concluded on May 5. The face of complicated international situation, the Canton Fair has ushered in a positive signal to be buyers and trading volume growth, known as a "barometer" of China's foreign trade wind vane "the largest Import & Export Commodities Fair, blowing bursts of warm air.
Fair spokesman Liu Jianjun "overall smooth operation, the successful completion of the central task of buyers and export turnover to double growth" and made a conclusion. The statistics show that the trade fair to be buyers 207,103 people, an increase of 3.93% than the 108th, 107th an increase of 1.52%, export turnover of $ 36.86 billion, an increase of 5.8%.
The rising costs of compression corporate profit numbers to conceal his concerns about China's foreign trade development environment of uncertainty.
As raw material prices, labor costs continued to rise sharply, to varying degrees to squeeze corporate profits, orders enthusiasm general decline in foreign trade enterprises.
Driven by international commodity prices continued to rise, the prices of domestic production data in the first quarter continued to rise. Production data of the circulation rose by 11.2 percent, refined oil prices rose 17.8 percent, steel products rose 17.6 percent, non-ferrous metals rose 10.3 percent, chemical products rose by 8.8%.
Foreign trade enterprises to take to raise export prices in response to rising costs, the magnitude ranging from 3 to 20%. But the reality is that most enterprise bargaining power is limited, can not be fully passed on risk. At the same time, taking into account the global economy in Europe and America are not fully recover, companies worried about the offer exceeds the acceptable range of foreign buyers, will result in the loss of customers to source and order, the price seems prudent.
Affect access to a single passion, recruitment difficulty. According to data provided by the Ministry of Human Resources and Social Security, the first quarter of China's 13 provinces to adjust the minimum wage, the average increase of 20.6%. Many companies, even to raise wages, it is difficult to hire workers, the current staff is already constantly shrinking. Rush to take over the big one, the last can not pay a single time, but also consider the cost of default.
In fact, the cost pressure to promote the export product prices impact can be long-term, once the cheap which achieved the demographic dividend is exhausted, the export product advantage will lie? Global Sources had a survey shows that foreign clients who wish to find an alternative supplier, especially small-scale in the textile industry, this phenomenon has begun to emerge, it will order the transfer to cheaper regions and countries of Vietnam, Bangladesh State .
Industry insiders estimate that the current foreign trade situation, if sustained, would likely result in export volume this year, real growth, exports amounted to maintain a rapid growth, while corporate profits plummeted situation.
Look for the parties to respond to appreciation of the renminbi
April 29, the RMB exchange rate is again ascribed to the central parity rate of RMB against the U.S. newspaper 6.4990, broke the 6.5 mark integer. Cumulative increase of RMB against the U.S. dollar in the first April reached 1.9 percent, to accelerate the appreciation trend.
Foreign trade enterprises, RMB appreciation not only re-compressed margins, fluctuations in exchange rates is a hint of uncertainty factors for their negotiations with customers, resulting in the export enterprises can not take a long single. According to statistics, the trade fair orders, short single accounted for 90% of a single, long and only 10%. The companies therefore seek to respond to the appreciation of the RMB.
Guangzhou Textiles Import and Export Group Co., Ltd. to take forward to lock the exchange rate to digest the pressure of RMB appreciation, that is, negotiating with banks to enter into forward foreign exchange contracts agreed in the future apply for exchange settlement and sales of RMB against foreign exchange currency, exchange rate, at the Closing in accordance with the rate of exchange determined by the forward foreign exchange contracts to the bank on the day of business.
However, the move would enable enterprises to bear the cost pressures to pay the bank commission applies only to the stronger enterprises, and expedient.
After a year and a half training and development of the RMB cross-border trade settlement is entering the stage of the development by leaps and bounds. Every reason to believe that the yuan was "singing" walked "going out" pace.

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