The Rise Of The Renminbi Is Fierce &Nbsp; &Nbsp; China'S Export Enterprises Are Miserable.

Reporters recently conducted field research in Guangdong, Jiangsu, Shandong and other places.

For a long time, some western countries have accused the RMB exchange rate of being "seriously underestimated".

The US House of Representatives fundraising committee voted 24 days to pass a bill designed to impose special tariffs on countries that underestimate the exchange rate of the local currency, and further pressure on the appreciation of the renminbi.

According to the latest data from China foreign exchange trading center, the central parity of RMB against the US dollar in September 27th was 6.7098.

Since June 19th, when the central bank reiterated the 3 months to September 21st, the appreciation of RMB against the US dollar has reached nearly 2%.

Reporter research found that after several years of resources,

Qian Jin, director of Hongyuan motorcycle foreign trade enterprise in Huadu, Guangzhou, told reporters that at present, Europe and the United States carry out "anti-dumping and countervailing" investigations on China's export of electronic machinery and other products, and the foreign trade profit margins of the machinery industry such as motorcycles are even less than 5%, and the survival of enterprises is very difficult.

"The fourth quarter is the peak season for China's export trade, and many orders are ready for settlement in the near future.

If RMB appreciation is accelerated, enterprises will suffer heavy losses when settling foreign exchange. "

He said.

Some market participants believe that the rapid appreciation of the RMB will have a superposition effect on the production cost of China's foreign trade enterprises, which will affect the recovery process of Global trade.

Liang Yaowen, director of the Guangdong Provincial Department of foreign trade and economic cooperation, said the latest survey shows that the recent production costs of Guangdong foreign trade enterprises have been rising sharply.

Among them, the cost of labor has generally increased by 20% this year, and more than 60% of enterprises expect to increase their salaries within the year.

Meanwhile, the purchasing cost of raw materials for foreign trade enterprises has generally increased by about 10%, and the prices of raw materials such as steel, copper, plastic, cotton and so on have increased by more than 20%. In addition, the rising cost of electricity and the doubling of the cost of shipping have also increased the cost pressure of enterprises.

"China's foreign trade enterprises can hardly say that they have overcome the financial crisis, and the continuous pressure exerted by the US government to make the renminbi appreciate will only further aggravate the living environment of these enterprises."

He said.

Xu Weimin, chairman of Jiangsu Dong Du group, told reporters that the continued appreciation of the RMB will bring great pressure to the textile and garment industry.

"In fact, the proportion of good enterprises in the textile and garment industry is around 10%, and the profit margin of the textile industry is around 50%, and the overall profit margin of the textile industry is between 3-4%.

If the appreciation of RMB exceeds 5%, 2/3 of textile and garment enterprises will not be able to bear it.

Xu Weimin said.

Wu Xianman, director of the Institute of Finance and trade of the Jiangsu Academy of Social Sciences, said that the scale of Jiangsu's export has ranked second in the country for many years. Among them, the electromechanical industry and the textile and garment industry ranked second and third of the national exports.

A quantitative analysis of an export enterprise made by the Jiangsu Academy of Social Sciences and Commerce Department shows that every appreciation of the real exchange rate is 1 percentage points, the export of electromechanical products in Jiangsu has dropped by 0.63 percentage points, the export of textile and clothing in Jiangsu has dropped by 1.47 percentage points, the fluctuation of the real exchange rate of RMB has increased by 1 percentage points, the export of electromechanical exports in Jiangsu will decrease by 0.02 percentage points, and the export of textile and clothing will be reduced by 0.04 percentage points.

The surveyed enterprises generally indicated that if the central parity of RMB against the US dollar remained at 6.5 level for a long time, Jiangsu's textile and garment export enterprises would have a major impact: the growth rate of textile and garment exports in Jiangsu may drop to zero; the profits of textile and garment export enterprises have declined substantially, and even many enterprises have gone bankrupt, thus affecting employment and social stability.

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The company is a foreign garment export processing company with an annual export volume of 10 million US dollars in the eastern part of Shandong, with 1500 employees.

Tan Hongyan, general manager of Group Import and export company, said that if RMB appreciated by 6.7 against the US dollar, the profit margins of enterprises would be further narrowed and the pressure of business would increase significantly.

A recent research report on the impact of RMB appreciation on export enterprises shows that the appreciation rate of most export enterprises can be less than 2%, which accounts for 39.7% of the total sample size, and accounts for 33.8% of the total 2%-4% appreciation.

The total number of samples in the survey is 1900, including export enterprises in more than 10 provinces and cities in China.

It is reported that the profit margins of China's small and medium-sized export enterprises are not high, especially in the labor-intensive manufacturing industries such as textiles, clothing, shoes and hats, and 84.07% of the export enterprises have a profit margin of less than 5%.

Some Chinese enterprises and foreign trade personages believe that the rapid appreciation of the RMB will cause serious losses to Chinese enterprises, but at the same time, it will not benefit the steady development of the global economy.

Wei Xiaohua, general manager of Guangzhou Kun Jiang auto parts company, said that with the auto parts industry as an example, most Chinese manufacturing enterprises have direct industrial links with multinational car giants such as Europe, America, Japan and Korea, and the pfer of production capacity to the Chinese market has become an irreversible trend. A large appreciation of the renminbi not only directly hurts all the participating enterprises, but also does not allow the developed countries to shift their production capacity and jobs back.

"If the 20%-40% is revalued at a time, the whole industry chain will not work."

Wei Xiaohua said, "even if China's capacity and export capacity are hard pressed down, these capabilities will only be pferred to Vietnam, South America and other markets, and the cost of time and money needed to pfer is unimaginable."

Zheng Jianrong, deputy director of the foreign trade and economic cooperation of Guangdong Province, said that maintaining the basic stability of the RMB exchange rate is in line with the law of the market. It is not only the need to stabilize China's exports and promote the sustained recovery of China's economy, but also the common demand for maintaining the recovery of the world economy and trade.