Recently, the General Administration of Customs released data, the data show: last month, China’s foreign trade amounted to 321.51 billion U.S. dollars, net of exchange rates fell 2 percent, import and export decreased by 0.7% and 3.1% respectively. Exports hit in October 2009 since 44 months minimum. Trade surplus of 169.34 billion yuan (equivalent to 27.13 billion U.S. dollars), narrowed 14%. In the first half, China’s import and export value $ 1.99769 trillion, an increase of 8.6%. In fact, in this broader context, the RMB appreciation and the impact of rising costs, the reporter access to some of the Hebei export traders have a career change.
Successful small business owners to re-do back DaGongZu
As early as 2002 began to do fabric export business Bai Bing and her husband both have fast, in the initial stage, relying on personal connections in the textile industry and overload pay, two had to do business in Japan, West Asia and Southeast Asia, more than ten countries, the annual income of at least four million.
But starting in 2008, the economic impact of the environment, Bai Bing’s export business gradually began to slump. Especially the subsequent appreciation of the renminbi, rising labor costs, such as cotton prices skyrocketing spate of negative factors, making two small companies from 2010 losses.
Bai Bing, said the textile and clothing trade enterprises, raw materials and exchange rate are two important factors affecting profit. Only the exchange rate, for example, from customer inquiry to the company’s offer, the deposit in place and then pay a single factory, garment orders cycle at least two months, if the exchange rate changes too fast, foreign trade companies will be subjected to greater exchange rate risk. With a $ 1 million of orders, for example, if the RMB against the U.S. dollar is 1:6.3 when orders, but to pay a single time has come to RMB against the U.S. dollar about 1:6.2. Then they exchange losses of 10 million yuan.
This is obviously not such a small white ice exporters can continue to sustain losses. By 2012, several countries around the economic situation is not good, customer orders gradually shrink, under both internal and external, Bai Bing and her husband both had to give up the business, re-employment to find work. Now they earn a monthly salary of 6,000 yuan, “Compared to stare list, at least I feel very relaxed.”
Overall weakness in the real economy is the main reason
Customs spokesman, Integrated Statistics Division Zheng Yue claimed that the first half of imports and exports showed steady decline trend. Among them, in May China’s foreign trade growth rate of only 0.3% in June fell further into negative growth of 2%. In addition, moderate growth in general trade, processing trade growth is weak. With the European Union, Japan bilateral trade declined, the United States, ASEAN trade and stability.
Foreign trade growth in the second quarter of the situation suddenly slowing down, the Customs Department spokesman Zheng Yue claims that this is the result of many factors. The first is the external market demand continues to slump, inhibiting further expansion of exports. In addition, exchange rates, labor wages continued to rise in the cost of exports, domestic labor costs continue to increase, frequent trade friction and diverse. Slowdown in domestic industrial production, inhibit demand for imports of raw materials.
Fudan University, Professor Jian Sun also believes that exports fell for three reasons, first, the entire entity of international economic weakness. The second is the rise in developed countries trade protectionism trend appears. For example, the recent European Union on China’s photovoltaic industry, high taxes levied by double overtake. Third, the United States and Japan and other developed countries to implement quantitative easing, the dollar depreciation of the yen, which led to the appreciation of the renminbi.
“Worst moment” or have been in the past
For Hebei speaking, 1-5 months, total exports by City in Hebei Province is ranked top three in Shijiazhuang, Tangshan, Baoding, Xingtai three after qualifying, Zhangjiakou, Chengde. Growth in the first three qualifying Tangshan, Chengde, Langfang, after three qualifying Shijiazhuang, Baoding, Zhangjiakou. Higher than the provincial average (3.1%) have Tangshan, Chengde, Langfang, Hengshui, Xingtai five cities, the rest were below the provincial average, and are negative growth.
Although the days of tough, there are some small exporters to switch, but it is worth noting a detail is Hebei textile export concentration, bags and other labor-intensive mechanical and electrical manufacturing industries export situation has gradually improved.
Last year they only do luggage exports through the network platform, the local count rather late, but the past year, their exports albeit small, but always maintained a gradual growth momentum, but also increasing the customer source .
This is also in the customs statistics can be proved in the first half, China’s export of electromechanical products 608.56 billion U.S. dollars, an increase of 10.7% over the same period accounted for 57.8 percent of total exports. The same period, exports of textiles, clothing, bags, shoes, toys, furniture, plastic products and other categories of labor-intensive products 210.02 billion U.S. dollars, an increase of 12.6%, higher than the overall growth rate of China’s exports over the same period by 2.2 percentage points.