Encounter Exchange Rate "&Nbsp"; Sichuan Shoe Enterprises Face Upgrading Or Foreign Factories.

January 6th, yesterday, the RMB against the US dollar.

According to the central bank statistics, since the reform in 2005, the exchange rate reform has gone through 5 years as of November 2010. The RMB has appreciated 23.97% against the US dollar, and has appreciated 14% against the euro.

"The continuous appreciation of RMB has caused great pressure on China's export oriented enterprises, especially manufacturing enterprises."

Yang Chunxuan, Secretary of the Sichuan Provincial Commerce Department Party committee, told reporters that last year, although the volume of foreign trade exports in Sichuan increased significantly, the profits of the enterprises did not show the same growth.

"We have calculated that the RMB appreciation will be one percentage point, and the profit of the company will be reduced by at least 3 percentage points."

Yang Chunxuan said, because the appreciation of the renminbi has greatly increased the cost pressure of enterprises.

If enterprises want to occupy the market and increase the cost, the price will naturally be raised, but the price increase will inevitably reduce the competitiveness of the products in the world.

"For example, a pair of shoes, we want to sell 5 dollars, the cost increases, we raise the price to 6 dollars, at this time, Vietnam and Philippines can produce the same shoes can not sell 6 U. S. dollars, if we want to avoid being other countries' business", our enterprises will only lower the price, the profit margins will be small.

In order to occupy the market, many enterprises have to reluctantly "earn less".

Encounter "life and Death Gate" Sichuan enterprises or upgrade or build factories abroad

"Footwear, textile manufacturing, bags and other enterprises producing large quantities of commodities are more serious. Factories in Vietnam, Philippines and even India have caused great pressure on us."

In addition, the appreciation of the renminbi has great psychological impact on enterprises.

On the one hand, Yang Chunxuan said that, on the one hand, enterprises should sort out their customers and establish good relations with long-term and high-quality customers. If possible, foreign exchange and their clients agreed to lock in the exchange rate to avoid risks; on the other hand, enterprises can make innovations in the market development, adjust the industrial structure, eliminate single, low value products, produce more value-added products, produce more products with brand value, and actively try to "go out" and invest in factories abroad. In addition, we should also closely explore and promote the RMB settlement system, "directly using RMB settlement, and popularly speaking, is to avoid the loss of profits in many exchange links, which is also important for foreign trade enterprises". How should foreign trade enterprises avoid the appreciation of RMB?

At the same time, Yang Chunxuan believes that the government should also strengthen early warning of RMB appreciation in order to enable enterprises to acquire more information in foreign trade.