Canton Fair Enterprises forced to fight currency war

October 17, the 108th session of the Canton Fair has entered the third day. In Friday, the United States postponed a "currency war" between China and the US, announcing the postponement of the major trade target, the international economic and Exchange Policy report, scheduled for October 15. But for China's foreign trade companies participating in the Canton Fair, the exchange rate friction that may occur at any time is still a "sword" hanging over the head. "If the renminbi continues to appreciate, many manufacturing companies will have no profits to speak of, facing the plight of production and closure."　　"Many exporters said that the current Canton Fair product quotes have adopted a long-term exchange rate locking method, to minimize exchange rate fluctuations caused by the huge losses." The approaching critical point of enterprises ' digestion ability the Treasury Department said in a statement in Friday that it had decided to postpone the "semi-annual report on international economic policy and exchange rate policy", which was scheduled to be submitted to Congress on the same day.　　The statement said the US Treasury secretary had seen China accelerate the pace of appreciation of the renminbi since early September, and that "it is important to maintain this situation". The renminbi has appreciated nearly 3% against the dollar since September, and the renminbi has appreciated by more than 1% a month since June, according to data.　　From October 13 onwards continued to rise, 3rd consecutive breakthrough 6.67, 6.66, 6.65 three major crossings. The fluctuation of RMB exchange rate frequently causes great psychological pressure to domestic exporters. The Guangdong Machinery Import and export Company's Miss Lin to the reporter to calculate the account, September she has a 100,000 dollar bill,　　One months ago at the time of 1 U.S. dollars against the renminbi 6.74 yuan to quote, it is equivalent to 674,000 yuan, but one months later, the exchange rate rose to 6.66, that this list is tantamount to making a small profit of 8,000 yuan. Encounter similar experience of foreign trade enterprises, especially the low-end products, lower value-added enterprises, has approached the critical point of enterprise.　　Su Jing, Deputy Director-level commercial Counselor at the Ministry of Foreign Trade, said that China's exporters have a large margin of only 2% to 5%, and that changes in exchange rates will hit them. "The ability of high-end products to resist the risk of renminbi appreciation is slightly better." "Jiangsu Tiangong Tools Co., Ltd. Deputy manager Zhu Weixi said that the products produced by enterprises, although not very high-end, but gross profit as high as 15%, the impact of the RMB exchange rate is still affordable, enterprises can also own internal digestion." The production of LED TV Chaozhou Electronics Co., Ltd. Overseas marketing deputy manager Chen Quanyu is frankly, enterprises produce higher value-added products, belonging to high-end goods, coupled with the company to take the brand route, by the impact of the exchange rate is not big.　　He also revealed that not all the raw materials are rising, the cost of the LED TV screen prices are falling, to a certain extent, to make up for the loss of exchange rate fluctuations.　　Lock forward exchange rate to avoid risk although the report will be postponed, the renminbi appreciation pressure or will slow down, but the current Canton fair exporters are expected to continue to rise in the exchange rate, at the time of the offer, in accordance with the renminbi rate of short-term rise of 1% to 2% of the expected magnitude of the offer. “Since September, the RMB exchange rate has risen by more than 1%, and we are currently quoting at 6.5 of the rate according to this rising expectation. "Guangdong Yulan Decorative Materials Co., Ltd., the responsible person in charge of Mr. Huang told Yangcheng Evening News reporter." "6.5 Basically is everybody's consensus, everybody is raising prices, we also have to raise prices, as long as with the buyers actively communicate, they will understand."　　"Zhongshan hundred Kitchen and Bathroom Co., Ltd., said Chun. Chen Jing, deputy general manager of Zhongshan Auto Parts Industry Co., Ltd. said, "Lock-in" 6.5 is only "expedient", the future of the renminbi exchange rate fluctuations who can not be expected. "So, most of the companies are long single dare not to answer, only short list, then the single will not exceed 1 months, to avoid the risk of exchange rate." "Companies that have competitive products see a" currency war "as an opportunity. Zhongshan Daily Products Co., Ltd. Manager Lu Shixiang said the current exchange rate problem, for their enterprises, is actually an opportunity, when other enterprises because of the profit space compression had to raise prices, they choose neither price nor price, but through improved products, improve product quality, appearance, attract customers. "Dealing with foreign businessmen, in addition to price, product quality, product technology content is a bargaining chip." "(Chenjiang, Lu Zhilin)