RMB Has Repeatedly Broken Through Some Wuhan Textile Enterprises' Emergency Risk Aversion "Lying Down On The Spot"

In the middle of July, the rumor that the export tax rebate of the textile industry was about to be adjusted was well known. Recently, the reporter learned from authoritative channels that the Ministry of Commerce has formally advised the State Council to slow down the pace of RMB appreciation. This seems to indicate that the relevant national departments have started to rescue the market.

RMB has repeatedly broken the barrier

The other party asked for a one-year contract, so I can't sign it. The order I signed on July 1 may be completed on August 1 next year, not to mention making money, and it may be a big loss. Yesterday, Li Meng, the head of a clothing company in Jiang'an District, which is engaged in clothing export business, said that the US dollar exchange rate is now 6.8. If the exchange rate is 6.8, if it is 5.8 next year, it will be a waste of work this year?

Huang Hui, chairman of Wuhan Hongren Group, one of the four banners of Han style clothing, said that at present, less than 10% of textile enterprises in Wuhan are still doing clothing export. In the interview, an industry insider also said that for garment export enterprises, only an increase of about 20% in export prices can guarantee their capital.

Driven by high international oil prices and other factors, the exchange rate of the RMB against the US dollar has broken through one after another, and the rate of appreciation has accelerated significantly. The latest data from the China Foreign Exchange Trading Center shows that the exchange rate of RMB against the US dollar has reached a new high for more than 50 times since 2008, from breaking 8 to breaking 7, and then to yesterday's 6.82, with a cumulative increase of more than 7% this year.

Some Chinese enterprises choose to lie down on the spot to avoid danger

Wait for death or commit suicide? This is a difficult choice. Since the second half of last year, I have been afraid to accept foreign orders. Long term orders have been replaced by short-term orders, and large orders have been replaced by small orders. Boss Zhao, a chemical export enterprise in Dongxihu, summarized his business situation in the past year in this way.

This is an era of real wolves. Boss Zhao introduced that his company has basically stopped all business and has become a shell company. In his words, the export environment is bad, raw material prices rise, and labor costs rise. In this case, the best way is to lie down on the spot to preserve strength.

Some small and medium-sized enterprises temporarily terminated their export business or turned to business due to the pressure of rising costs. Yesterday, the reporter learned from the relevant person in charge of the provincial commerce department that in the first half of this year, the export of Hubei electromechanical and high-tech products was still strong, but the export of textiles and clothing and other traditional trade fields declined to varying degrees.

The Ministry of Commerce submitted a letter to save the market

It is learned from authoritative channels that at present, the Ministry of Commerce has formally proposed to the State Council to slow down the pace of RMB appreciation, and at the same time increase the export tax rebate rate of clothing, toys and shoes to prevent a sharp drop in exports.

The industry believes that a clearer indicator is expected in the near future. The export tax rebate will be increased by 2% to 13%, while the garment export tax rebate will be increased by 4%, as well as other increases in varying degrees. Liang Zhaoji, senior economist of Hong Kong DBS Bank, has publicly said that the appreciation of the RMB is expected to slow to below 5% next year.

Yesterday, an official of the Hubei Provincial Department of Commerce said: "All kinds of signs show that the plight of small and medium-sized foreign trade export enterprises is attracting the attention of China's senior management.".