The "double decline" of China's import and export data in the first quarter has made various sectors worried about China's foreign trade situation. At the 115th Canton Fair, which opened yesterday, many foreign trade enterprises also felt the chill of spring. The rising cost of production factors, the decrease in exchange rates, the intensification of international competition, and the instability of the situation in Eastern Europe have all brought great difficulties to the foreign trade exports of Chinese enterprises.

Liu Jianjun, spokesperson for the Canton Fair and deputy director of the China Foreign Trade Center, said that it is expected that the number of overseas buyers at this conference will be close to the level of the 113th Canton Fair held at the same time last year. In the situation of internal and external difficulties, the price war between enterprises has once again escalated, and many companies even sell at a loss to seize the market.

The production factors continue to rise, and the gross profit of enterprises is lower than in 2008

Yabao Road in Chaoyang District is one of the largest clothing export trade hubs in China, with 3000-6000 enterprises and individual merchants, of which 90% are engaged in export trade.

Vice President of Yabao Road Chamber of Commerce, General Manager of Beijing Pudengda Economic and Trade Co., Ltd., and potential interviewee with Beijing Business Daily, said, "During the 2008 financial crisis, our company's gross profit could still reach 10%, and some even reached 30%. However, this year's gross profit of 4% -5% is already very good.

He Qian stated that in recent years, production factors have been rising year after year. After the Spring Festival this year, the wages of workers in factories in the Yangtze River Delta and Pearl River Delta increased by 7% -8%, and the prices of raw materials have also been continuously rising.

Tu Heping, the head of a small generator company with an annual sales of 50 million yuan, also said that land prices are soaring day by day, and the land in Zhejiang is at least 70-80 million mu, which puts great pressure on business operations.

The long-term appreciation market of the Chinese yuan has been squeezed by Southeast Asian companies

Ten years ago, the exchange rate of the US dollar against the Chinese yuan was around 8.2, five years ago it was around 6.9, and now it is around 6.2. Although the exchange rate of the Chinese yuan against the US dollar has shown a slight upward trend in recent times, the industry expects that the continued appreciation of the Chinese yuan is a major trend. However, in the past decade, the continuous appreciation of the Chinese yuan has gradually caused "Made in China" to lose its price advantage.

Tu Heping's products are mainly exported to Southeast Asia and Europe. He said that with the continuous appreciation of the RMB in recent years, small and medium-sized mechanical and electrical foreign trade enterprises are facing a situation where their profits are almost exhausted.

Our domestic enterprises now need 50-80 yuan to produce a pair of jeans, which is equivalent to 8-12 US dollars in US dollars. However, the export price of the same pair of jeans in Vietnam and Thailand is 5-6 US dollars, which is half of ours. Now many Chinese companies are also considering transferring their production bases located in the Yangtze River Delta and Pearl River Delta to Southeast Asian countries, "said He Qian.

The situation in Eastern Europe has led to a 50% decrease in business orders

Since February this year, the political crisis in Ukraine has also stirred up the entire export market in Eastern Europe.

After the outbreak of the Ukraine crisis, orders related to Ukraine have been suspended by 90%, and the economic sanctions imposed by Europe and the United States on Russia have intensified. Many Russian companies are also concerned about the prospects and have reduced their order volume. Some orders related to Russia have also been affected in settlement. He Qian said that many trading banks of Chinese and Russian companies are European and American banks, which may not have had problems before, but now these banks are taking sanctions against Russia, which has affected the settlement of transactions between the two countries' enterprises.

Eastern Europe is the largest market for Yabao Road enterprises. Due to the situation in Eastern Europe, the orders of enterprises have decreased by about 45% -50% year-on-year this year, and some enterprises have even decreased by 75%, "said He Qian.

In an environment of internal and external difficulties, the price war between enterprises has once again escalated. This year, the market is shrinking, costs are rising, and everyone is under great pressure. Many companies have started to lower prices, and some even sell at a loss to maintain the market. The price war among export companies is becoming increasingly fierce, "a staff member of the business department of Jiangsu Zhonghe Import and Export Co., Ltd. said in an interview with Beijing Business Daily.

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Ministry of Commerce: Measures to stabilize foreign trade growth will be introduced

Zhong Shan, Deputy Director of the Canton Fair, International Trade Negotiator and Deputy Minister of the Ministry of Commerce, recently pointed out at the first meeting of the 115th Canton Fair Leadership Committee that the Ministry of Commerce will continue to implement Document No. 83 and consult with various departments to introduce further policy measures to support stable growth in foreign trade. Further improve policies on trade, finance, taxation, and banking, enhance the level of trade facilitation, and create a better environment for the development of foreign trade enterprises.

Zhong Shan emphasized that in 2014, China's foreign trade development still faced a complex and severe situation. From an international perspective, the international economic recovery is facing difficulties, especially in emerging markets such as the BRICS countries; Politically, regional non economic and non-traditional risks occur from time to time. These factors have led to increased uncertainty in international demand. From a domestic perspective, the reform has entered a period of shifting gears, and the tasks of transforming foreign trade modes and adjusting structures are arduous; The rising costs of labor, land, environment, and financing have weakened traditional competitive advantages.

The Canton Fair has always been regarded as a barometer for China's foreign trade exports. It is reported that the total exhibition area of the 115th Canton Fair is 1.17 million square meters, with a total of 59708 booths, an increase of 169 compared to the previous edition.