*** Increasing pressure on the value of exports to European companies need to break through

The debt crisis in Europe is still intensifying and deepening.

As the EU’s largest trading partner, the EU’s continued deteriorating debt crisis will inevitably bring shocks to China’s imports and exports to Europe. The recent increase in EU anti-dumping measures against Chinese exports may be a signal. On September 15, the EU made an anti-dumping final ruling on ceramic tiles originating in China, with a punitive tariff of up to 69.7%. Almost at the same time, the European Union raised the threshold for Chinese tire exports to the region. Tires whose performance indicators do not meet the EU minimum standards will not be sold in the European Union after November next year.

At the same time, the appreciation of the renminbi against the euro has recently accelerated. On September 25, the central parity of the renminbi against the euro reported a high of 8.6219. In the context of increasing economic turmoil and anti-dumping pressures in Europe, how much does the appreciation of the renminbi affect Chinese import and export companies? How should the export companies respond and highlight the issues?

Weakening the competitiveness of export companies As the debt crisis in Europe continues to intensify, the euro was once weakened and the renminbi is entering a new round of appreciation of the euro. In early September, the central parity of the renminbi against the euro exceeded the key level of 9.0. On September 25, the central parity of the renminbi against the euro was reported at 8.6219, setting a new high for the central parity of the renminbi against the euro in the past two years.

Radar, director of the International Economics Department of Renmin University of China, said in an interview with the China Economic Times that the rapid appreciation of the renminbi against the euro will increase the cost of Chinese export companies.

“At present, China’s economic and trade ties with the European Union are getting closer and closer. The appreciation of the renminbi against the euro is quite significant for China’s exports to the EU.” Wang Junjun, dean of the Financial Research Institute of the Central University of Finance and Economics, said in an interview with this reporter that the renminbi There are two direct impacts on the appreciation of the euro: one is to increase the cost of Chinese enterprises’ exports to the EU and to weaken the competitiveness of Chinese products in the EU market; the other is a favorable factor that will reduce the cost of Chinese imports from the EU. In this sense It will help ease China's inflationary pressures. In the long run, it will affect China’s trade structure. China's products exported to Europe are mainly labor-intensive and low-end products. Products imported from Europe are mainly high-end products. Since high-tech products are not as price sensitive as low-end products, the appreciation of the renminbi will lead to the import of Chinese products to Europe. Increased, while foreign exports decreased.

Zhao Xijun, deputy dean of the School of Finance at Renmin University of China, said in an interview with this reporter that a country’s import and export are linked to exchange rates, but it is more related to the competitiveness of the country’s products in the international market. The exchange rate is an influencing factor, but not all factors. The appreciation of the renminbi against the euro will indeed increase the cost of Chinese export companies, but it will have little impact on China’s total exports to Europe. According to Zhao Xijun's analysis, since the exchange rate reform in 2005, the appreciation of the renminbi against the euro has not been small, but China’s exports to the EU are increasing, and the trade surplus is also expanding. This is theoretically the opposite. Theoretically, it should be a reduction in the appreciation of the renminbi. Only rightly, this also shows that the competitiveness of Chinese products in the international market is increasing. However, he also stated that the appreciation of the renminbi is beneficial to the import of Chinese companies. China mainly imports aviation products, precision instruments and agricultural products from Europe. He suggests that import companies should seize the best time for exchange rate fluctuations.

"The exchange rate market is a trend in China's exchange reform, and China's export enterprises cannot always rely on exchange rates to obtain competitive advantages," said Zhao Xijun.

The exchange rate risk management should be strengthened Given the deteriorating European economy and the worsening market environment, how should China's exporting enterprises to the EU deal with the impact and impact of RMB appreciation? Experts agreed that exporting enterprises to Europe need to enhance their competitiveness in the European market by strengthening measures such as strengthening exchange rate risk response capabilities and cost control, and stressing the importance of RMB appreciation and the deteriorating economic environment in Europe.

Zhao Xijun believes that if the renminbi appreciates against the euro, the enterprises that are really affected are those that are not competitive in the market, and those that are competitive in the international market are less affected. "China's export companies need to improve their ability to deal with exchange rate risks. They also need to improve their market competitiveness from the aspects of raw material cost control, production, operation and management."

Wang Yujun thinks that Chinese export companies are relatively lacking in managing exchange rate risks and need to be strengthened. Enterprises can use some operations to lock in risks. In the short term, exporting enterprises will be more difficult. In the long run, Chinese export enterprises to Europe will need to change their trade structure, increase the export of high-tech and value-added products, and reduce the export of labor-intensive and resource-intensive products. Faced with the pressure of increasing costs, Chinese enterprises must focus on the control of production and export costs and strengthen their competitiveness.

According to reports, after the EU's anti-dumping arbitration against Chinese tiles, many ceramic companies in Guangdong started to consider relocating their production bases to lower-cost countries or establish joint ventures in export-oriented countries to avoid the EU’s high tariffs. threshold. Brand building is also particularly important. The tariffs on Chinese ceramic brand-renowned companies that export to the EU are 20.6%, far below the upper limit of 69.7%.

"In addition, export companies can also request government policy support. Of course, we must pay attention to the support methods, such as increasing industrial investment, strengthening basic research and technological innovation, which will not violate the trade rules." Wang Yujun told this reporter.

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