Exchange rate shadow over Canton Fair

The strong appreciation of the renminbi is expected to allow the 108 Canton Fair, which has just opened, to be overshadowed by an uncertain future exchange rate and price. (Southern Weekend reporter Chen Wan/figure) Author: South Weekend reporter Chen Wan intern Rochon October 16, Canton Fair the next day, the Belgian-Kun-Mei company chairman Rick received a call from a Chinese exporter, the other side demanded a price hike.　　Although the price has just been negotiated a day ago, Chinese exporters say the renminbi has appreciated again today, before the price has been done.　　China's largest refrigerator exporter STAR Group Foreign Trade company general manager Chen Haiming, in the Canton Fair on the docking list is very cautious-the period of more than 2 months of orders, they will be very careful; the period of more than 6 months of orders, then all rejected.　　Like Chen Haiming, will be large single small, long single short, in this Canton Fair has become a large number of foreign trade enterprises of the common choice.　　Taiping Bird Import and export company general manager Wang Dingying introduced, they are now using the delivery date "differentiated quote", for example, the half-year order, is subdivided into four stalls: 45 days, 90 days, 120 days and 180 days, each file price is different. The Canton Fair, which has a history of more than more than 50 years, has always been regarded as a barometer and vane of China's foreign trade. Its turnover and attendance are often considered to outline the Chinese exports over the next 6 months.　　The October 15 opening of the 108th Canton Fair, but also because of the exchange rate between China and the United States, and eye-catching. On the surface, the Canton Fair is still lively and extraordinary. Opening day more than 8 o'clock in the morning, is located in Pazhou Pavilion entrances and offices, merchants have lined up long team.　　And the companies that have not come in, like locusts, rush forward and deliver leaflets enthusiastically. But under the double pressure of exchange rate and cost, there is a single dare not to take, receive single not make money, make foreign trade enterprise to Canton Fair emotional complex.　　Huzhou, Zhejiang, mei Xin Tatsu Garments Co., Ltd. is one of them.　　Mei Xin Tatsu Director Yu Feng told reporters, the last Canton Fair, also because the renminbi is facing the pressure of appreciation, they received is a small single, this session, the estimated situation will be similar, so simply did not come.　　The RMB exchange rate to the "lively" Canton Fair, has cast a heavy shadow. On the opening day of the Canton Fair, the renminbi rose to 6.6497 in the middle of the dollar, with new highs since. The renminbi has risen 3% per cent against the dollar so far this year after China announced the resumption of its reform of the renminbi exchange rate regime on June 19.　　Into the September, a sudden acceleration of appreciation, almost a day change, the nerves of Chinese export enterprises, and therefore highly nervous. On the afternoon of October 16, outside the pavilion, the reporter met two foreign businessmen from Kenya, who were about to discuss the exchange rate with him, and then suddenly came out of a young Chinese woman and interrupted the dialogue. "The seemingly angry woman, a Chinese client of the Kenyan businessman, is apparently afraid that the exchange rate will affect the decision of the client., she quickly took the car to pick up the Shunxing, the two-strong Kenyan guests from the front of the reporters.　　In the production of glass mosaic Nanjing Stone Import and Export Co., Ltd. Booth, several staff are scrambling to complain to reporters about the exchange rate: "Now do not know how to offer customers, because I do not know what the exchange rate will be tomorrow," the company called Cao Ping staff said that they belong to the traditional cheap industry, exchange rate changes make them confused. Change of settlement This is not the first time Chinese foreign trade enterprises face exchange rate risk. In the previous experience, Chinese enterprises have formed a set of effective coping methods.　　For example, the agreed exchange rate, through the bank to buy long-term settlement.　　But recently, because the renminbi as a warm boiled frog slow appreciation, so that the company's countermeasures have to make further adjustments. In the Canton Fair Xiamen only Nature Industry and Trade Co., Ltd. Booth, Sales Manager Du Yang, simply display the real-time rate of the page on the computer desktop, so that at any time to see, and then give customers quotes. The only natural profit for the production of screens is 10%.　　In recent days, the renminbi has risen 0.2 points, their profits have shrunk by 2%, and Du Yang has had to avoid currency risks.　　In September this year, Du Yang opened an account in Hong Kong to allow clients to call the money to Hong Kong accounts, two accounts are traded in dollars, do not change into renminbi, the middle of the exchange rate difference in the province. This trick, is Du Yang with "Blood lesson" in exchange for. In 2008, the renminbi appreciated. Du Yang wanted to use the euro to evade risk, unexpectedly in late July 2008, the dollar suddenly reversed, began to appreciate.　　The sudden turn to break the Du Yang's wishful thinking, not only did not evade the risk, but in one weeks lost 150,000. Weifang hai tuo Import and Export Co., Ltd. Yang Xiaqing also worry, she is in the foreign trade company, to Ruzhong licensing tractor agent. Its customers are mainly from the third world countries, in their eyes, the price is more important than quality.　　Some time ago, Yang Xiaqing with the Southeast Asian guests, hoping to settle in renminbi, but the guest a veto. There are also companies that are starting to change the settlement currency and way. The head of Le Shi Industrial company told reporters that they had reached an agreement with an Austrian client to settle the renminbi in a bundle of dollars. "When we sign a single, the product quotation in renminbi, export, in accordance with the real exchange rate of RMB to the U.S. dollar conversion, the customer in U.S. dollars to pay."　　"And more enterprises, they have to choose the most direct way-raise prices."　　But it's not easy.　　The difficulty of price increase is only natural industry and trade sales manager Du Yang for export has 10 years, the hands of a large number of relationships are good long-term customers, but recently, these big customers have become less "human", he only asked for a price increase of 0.5%, the big customers threatened to turn the list. "It's not really their fault," Du Yang said, "because the products we produce are not very profitable." "It's not just Du Yang, the traditional Chinese-made labor-intensive products like shoes, socks, clothing, bags, etc., profit margins are already small.　　Only in 2005, since the exchange rate, the renminbi has risen by 23.85%, eating away at their considerable profit margins.　　At the opening of the Canton Fair, Su Jing, Commercial counsellor and Deputy Director of the trade fair, said that Chinese exporters ' profits were generally 2% to 5%, and that volatility such as exchange rates was "a challenge to the bargaining power of Chinese exporters". The continued appreciation of the renminbi, for many companies, is becoming the last straw to crush the camel.　　To textile enterprises, for example, the price of a ton of standard cotton, last September, is still around 8000 yuan, this year soared to more than 20000 yuan, a full increase of 1.5 times times a year, cotton textile enterprise endurance reached the limit. Shandong Levin New group sales manager Wang Hui introduced, before attending the Canton Fair, usually in advance of the price ready, exhibiting, a style to quote a price, but this year to break the price, "fabric, labor costs, exchange rates and other factors must be taken into account."　　"When they bid, they have to be very cautious, because they are too high, and the client scares away." In fact, a lot of orders have been run.　　Kelen, a buyer from Hong Kong, told reporters recently that some of her peers had moved to Vietnam, Cambodia, and so on, because prices were lower. However, it is not so difficult for every firm to raise prices.　　For other companies, raising prices is not difficult.　　Highlights: Differential Upgrade products Jiujiang Poseidon 30 square meters of the exhibition area, a group of foreigners crowded, while parked three colorful, stylish jet ski, more than 40-Year-old boss Ching is a person sitting in a place not far from the booth, quietly observing. The Canton Fair opened two days, Ching harvest four containers of orders.　　After the evening closed the museum, should also not rest, there are orders to talk to customers. Due to the success of six years ago, his motorcycle was converted into a motorboat production line. The factory should be located in Jiangxi, the labor cost is relatively cheap, the production of motorboat is mainly aluminum alloy, the price is relatively stable.　　"In fact, these are not important factors," it should be said, the most important thing is that she produces differentiated products, higher profit margins, even for the exchange rate fluctuations reserved space, the price of a few points, merchants will not dispute. The same spirit of leisure, there are mudanjiang in large wood Industry Co., Ltd. boss Li Guo. His product is not popular, a 40 cm long, 10 cm wide staircase floor to sell to 1600 yuan, the profit rate of up to 30%. This year, although the price of logs rose by 30%, but their product prices also generally rose more than 20%.　　A stronger renminbi has limited impact on his profitability. Middle-aged man, he is now preparing to give the enterprise to return to the son. He smiling at his booth and watched his son talk business with foreign businessmen in fluent English and German. In the hands of the digital camera to capture the appearance of its work, said, "In fact, the core problem or product, the exchange rate is after all external factors, profit is determined by their own."