*** Appreciation led to a sharp drop in overseas orders for hardware and other industries

The appreciation of *** is causing exporters to worry about the drop in overseas orders. A survey published at the Hong Kong Global Sources Autumn Sourcing Fair in Hong Kong shows that 60% of the respondents stated that exchange rate changes will lead to a drop in export orders, and 8% of respondents even pointed out that the appreciation of *** will seriously affect their business. In order to cope with the impact of this exchange rate change, suppliers have started to increase export prices.

The 239 companies that accepted the survey were suppliers of telecommunications, home furnishings, fashion accessories, garments, fabrics, hardware, sports, and security products. Nearly half of the respondents were in Guangdong, 24% came from Zhejiang, and 14% came from Fujian. Among them, more than one-third of the suppliers interviewed said that they expected the renminbi to appreciate by 2% or more, and their export value would begin to decrease; 32% of respondents pointed out that a 3% appreciation would cause exports to fall.

Huang Tanwei, foreign trade expert and president of Global Sources Exhibition Department, introduced that in order to cope with the risks brought by exchange rate changes, some suppliers will increase their export quotas to offset the impact of the appreciation of ***, and a few suppliers have begun to use them. The exchange rate of the US dollar against the exchange rate of 6.6 yuan was quoted, and the current exchange rate is around US$6.68 per dollar. In the survey, 3% of companies planned to use *** as the basic currency for trading.

European and American economies have subsided, raw material prices have risen, labor costs have risen sharply, and the value of *** has risen... How to deal with the increasingly complex foreign trade situation has become a problem that many Chinese export companies must consider.

Huang Tanwei believes that although the European and American economies have been greatly impacted, Wal-Mart's retail sales have increased by 2% in the first three quarters of the year, indicating that consumer goods have not declined, and that the hardest hit is durable products and low cost-effective products. The increase in emerging markets exceeded the decline in the European and American markets. Under such circumstances, exporters should learn to do two markets at the same time. While developing foreign trade markets, they must also gradually develop the domestic market.

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