RMB Appreciation Or Overseas Orders Fall

A survey published in Hongkong's global resources autumn acquisition fair revealed that 60% of the surveyed companies indicated that exchange rate movements would lead to a decline in export orders, of which 8% of respondents pointed out that RMB appreciation Will seriously affect their business. In response to the impact of such exchange rate changes, suppliers have begun to increase export quotas.

RMB appreciation is causing Exporter Yes Overseas orders fall Worries.

The 239 companies surveyed were suppliers of telecommunications, home furnishing, fashion accessories, garments, fabrics, hardware, sports and security. Nearly half of the respondents were in Guangdong, 24% from Zhejiang and 14% from Fujian. Among them, more than 1/3 of the surveyed suppliers said that the value of RMB would appreciate by 2% or more, and their exports would begin to decrease. 32% of respondents indicated that a 3% appreciation would lead to a decline in exports.

Huang Tanwei, President of the global resources Exhibition Department, said that in order to deal with the risks brought by exchange rate changes, some suppliers will increase export quotas to offset the impact of RMB appreciation. A small number of suppliers have begun to make oral quotations with the exchange rate of US $1 to 6.6 yuan, while the current exchange rate is about 1 yuan to 6.68 yuan. In the survey, 3% of the enterprises plan to use Renminbi as the basic currency of trade.

European and American economic recession, rising raw material prices, rising labor costs and RMB appreciation. How to deal with the increasingly complex foreign trade situation has become a problem that many Chinese export enterprises must consider.

Huang Tanwei believes that although the economy in Europe and the United States has been greatly affected, the retail sales of WAL-MART in the first three quarters have increased by 2%, which means that daily consumer goods have not declined. The biggest impact should be on durable goods and low cost products. Growth in emerging markets outstrips the decline in the US and Europe. Under such circumstances, exporters should learn to do two markets at the same time, while developing the foreign trade market, and developing the domestic market step by step.

In this survey, 30% of the respondents said they would focus on developing the domestic market to cope with the current export situation.