Pour trade Hardware industry cost pressures need to accelerate the upgrade hedge
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by: frbiz
Recently, the central bank issued a statement saying that he would further promote the reform of RMB exchange rate formation mechanism, enhance the flexibility of RMB exchange rate, means a period of time appreciation of the yuan continues to face pressure. At the same time, has opened recently in many provinces and cities of the wage increase "big screen", which means a further rise in labor costs. Large increase in costs to greatly impact profit margins, especially in foreign trade enterprise even more. For the first half of the export situation in particular, rapid hardware industry, an avalanche of cost pressures, reversing forced hardware companies have to accelerate the upgrade foreign trade structure, enhance innovation and competitiveness, in order to enable enterprises in the fierce market competition does not stand invincible.
According to my understanding, salary increase from spring tide on April 1 this year, Shanghai will take the lead in the monthly minimum wage from 960 yuan to 1,120 yuan adjustment, since in Jiangsu, Zhejiang, Guangdong, Fujian, Tianjin, Shanxi, Shandong, 14 provinces gradually adjusting the minimum wage, the adjustment in more than 10%, even more than 20% of the province.
According to Renmin University of China professor Wang Jinbin economic analysis, pay for the Chinese economy is good, everyone can share the fruits of economic growth to achieve the ultimate goal; but on the other hand, in the current economic situation, no doubt increased the foreign trade enterprises cost, short-term growth for exports and the impact produced.
Apart from labor costs, the land and water resources, energy input costs are also increasing. Some experts said the international market of crude oil, iron ore and other bulk products into the price recovery channel, in March of this year, China's import of primary products prices have been for 4 months showed double-digit increases, and gains increased month by month.
The RMB appreciation will slow down China's exports to European markets resumed growth, the promotion of increased imports, while increasing market Chinese products in non-euro area products with competitive pressure from the euro zone.
High costs make profit margins of China's foreign trade enterprises to bear the weight of metal. Some strength bad businesses operating in this process if inadvertently, they would be out of the market. China's hardware manufacturing has long been relying on low-wage, high consumption, high emission pattern of growth will be unsustainable, foreign trade structure adjustment facing the passive pressure.
In my opinion, on the implementation of foreign trade structure adjustment, China's hardware entrepreneurs to hold a progressive attitude, and not overnight, with the appropriate government reform, change from passive to active adjustment to adjust. At the same time, policies can not go too far, or they will have too much impact, negative impact on business. As costs rise and the RMB appreciation will be reduced hardware export profits, the original product and the market has been unprofitable hardware business should be to develop new products, new markets, etc., to realize their own upgrades, so as to avoid in the market have been eliminated.
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