For the export of Chinese enterprises, the appreciation of RMB in 2005 and 2006 can still be digested by means of internal cost reduction to avoid export price increases. However, with the accelerated appreciation of the renminbi, the reduction of the export tax rebate rate, the increase in the staff's wage costs, the increase in procurement costs and environmental protection costs, and the occurrence of various factors, the resulting superposition has brought tremendous pressure on enterprises, and they were forced to adjust their export prices. The phenomenon of large-scale price increase of export products, and even higher and higher development momentum.
Since the reform of the RMB exchange rate system in July 2005, the RMB has appreciated by 2.42% against the US dollar; in 2006 and 2007, it has appreciated by 3.24% and 6.46% respectively; since 2008, the appreciation has exceeded 1.5%, and the annual rate is estimated to increase by 10%. Above, this is in line with the predictions of some famous international research institutions on the accelerated appreciation of the RMB in 2008.
Since the reform and opening up, Chinese enterprises have still experienced such huge exchange rate fluctuations before, and it is inevitable that they will be helpless. According to reports, export companies generally suffer large losses. Faced with such challenges, the author studied the countermeasures of some Japanese companies to cope with the appreciation of the yen in the past, and combined with China's current status, for the reference of China's foreign trade companies and export product manufacturing enterprises.
First, the appreciation of the renminbi should be predictive, predict the exchange rate and Other factors, and develop an export cost plan.
Since the exchange reform, the RMB has appreciated by more than 13% in 30 months. It is necessary for enterprises to recognize whether the RMB will appreciate in the future and the extent of appreciation. Comprehensively consider the various factors of rising export prices to develop export cost plans, purchase according to plan, and set export prices.
For example, in the second half of 2008, the export business was calculated based on the appreciation of RMB 10% from the beginning of the year. The exchange cost was 6.48 yuan, and then the factors such as the increase in water and electricity and employee income in 2008, plus certain other risk factors. .
2. Under the premise that the prices of imported products and parts remain unchanged, the increase in imports can offset the loss of export exchange rates.
The appreciation of the renminbi will lower the price of imported products denominated in US dollars, and export companies can partially offset exchange rate losses if they import at the same time. If the export product is assembled from imported parts, such as a processing trade type enterprise, then the export loss can be resolved by simply increasing international purchases.
Third, take financial measures to prevent exchange rate risks, such as forward settlement and sale of foreign exchange, foreign exchange swaps and other means to avoid exchange rate risks.
Fourth, increase investment, especially R&D investment, to improve product quality and increase prices by increasing product added value.
5. Transfer production bases to countries with lower manufacturing costs. The investment environment in countries such as Vietnam and Cambodia in Southeast Asia has greatly improved. The investment environment in countries such as Thailand is also more standardized, and the market is larger, which is also a good choice. Chinese companies take orders through local headquarters, carry out research and development, design, and produce in places where the cost is cheaper overseas, and then sell them all over the world. This mode of operation has become a common mode adopted by multinational companies.
6. Improve the competitiveness through mergers and acquisitions. It is also a good opportunity for enterprises to actively develop and enhance their competitiveness by making acquisitions bigger.
7. Develop new export markets. Taking energy exporting regions such as the Middle East as an example, due to high oil prices, the import strength of these countries has increased, and opening up these markets is an important way to enhance competitiveness.
8. Exported in RMB in the surrounding market. In recent years, the popularity of the renminbi in the border areas has gradually increased. If export enterprises in the border areas consciously use the renminbi as the settlement currency, they can effectively avoid exchange rate risks.
Furunda Imp & Exp Co., Ltd. , http://www.lygloves.com