The adversity of foreign trade enterprises striving for breakthrough under the background of RMB continuous appreciation

This reporter Lee would intern Zheng reported appreciation of the renminbi, has become a foreign trade enterprises difficult to avoid pain. October 14, the renminbi against the U.S. dollar median price of 6.6582 yuan, again set a new high since the 2005-year change.　　According to the exchange rate of 8.11, the cumulative appreciation of RMB has reached 17.9% since the conversion. "Because of the exchange rate issue, some foreign customers are considering doing some cheaper products and we have terminated the contract."　　Quanzhou Sheng Lok Clothing Weaving Co., Ltd. has been very clearly felt the pressure from the renminbi appreciation.　　Quanzhou Sheng Lok Garment Weaving Co., Ltd. is a typical small private foreign trade processing factory in southern Fujian, the main business is children's wear processing and children's clothing trade. Yang Zhe, Director of the brand promotion Department of the Plant, told the China News reporter that a revaluation would increase material costs and reduce profits. As a result, these international brands that are processed in China have to make adjustments to find their new customers and the overall order will fall. "Now our company is considering transferring part of the business to the mainland," he said. Yang Zhe also told reporters that because of their smaller size, they only had an impact on earnings without taking into account the risks involved.　　And some of the larger export enterprises risk is mostly.　　This is indeed the case. October 16, is attending the Canton Fair, China's large color TV companies, Skyworth Multimedia (Shenzhen) Co., Ltd. Marketing Center assistant general Manager Zhengzhiqiang said to the media, "the second half of this year, the renminbi against the dollar has been close to the majority of foreign trade companies ' expectations of the ' threshold '." Now every basic point of change, will make the enterprise feel very hard. In my opinion, China has no industry space to allow the renminbi to appreciate rapidly. To take the textile industry as an example, the industry's general view is that China's textile sector now has a product profit of about 5%, which is better managed, most of which can be controlled in 3%. If the renminbi appreciates 1%, nearly 20% of the companies are at the poles of the profit balance.　　If the renminbi appreciates by 5%, more than half of the companies will face closure. "The appreciation of the renminbi restricts the production and development of China's foreign trade manufacturing industry to a large extent, because the majority of China's foreign trade manufacturing products in international trade belong to low-end products, value-added relatively low, mainly rely on cost advantages to win, small profit margins, And the appreciation of the renminbi has caused many foreign trade enterprises to continue to increase the cost, directly affect the survival of such enterprises.　　Xiang Kai, associate director of the University of Guizhou and the Institute of Urban Management and economic development, said to the Chinese news reporter. Pressure is real, and China's foreign trade enterprises are struggling to seek a breakthrough.　　This point in the manufacturing agglomeration of the Yangtze River Delta, the Pearl River Delta region performance is quite obvious.　　Xiang Kai, who has been watching China's manufacturing industry, is very careful. He pointed out that the current Yangtze River Delta and the Pearl River Delta region of some foreign trade enterprises, in the context of continuous appreciation of the renminbi, looking for their own developmentNew path, first, to speed up the transformation of production mode, the mode of production to high value-added direction of transfer, leading to the upgrading of industrial structure; second, to change the single export region to diversify export areas, such as exports from Europe and America developed countries to Latin America and the developing world export products, and export to domestic market　　In foreign trade contracts to enable other than the United States dollar foreign currency or in renminbi to settle. For example, Wenzhou Day Fung lighter products from the European Union, the United States and other markets withdrew, to Japan and other countries and regions, it is said that the company's orders since this year began to strengthen.　　Japan, for example, has a growth rate of around 20%. Measures to avoid the risk of RMB appreciation, Xiang Kai also made some suggestions to these enterprises: first, to increase the price of export products, increase the proportion of domestic sales and the use of foreign exchange financial products; second, seek to cooperate with the professional exchange rate guarantee company, reduce their exchange rate exchange risk; Third, convert to non-US dollar currency or settle directly in renminbi　　IV, the contract agreed to use a certain intermediate price to specify the price of the product transaction. Li Sherong, a senior researcher at CIC, also told the China News reporter that there are two main ways to circumvent foreign trade export enterprises: first, to use the financial instruments provided by banks to evade risk. Second, adjust the enterprise's own development strategy: to strengthen independent innovation, build own brand, enhance the value-added of products, out of low-cost strategy, effectively overcome the RMB revaluation caused by the decline in profits; strengthen industrial chain integration, participate in the smile curve at both ends of the link, improve product profitability; strengthen procurement, production, sale Capital operations and other aspects of cost and cost management.