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On the morning of the same day, Vice Minister of Commerce Zhong Shan held talks with representatives of the electromechanical, Minmetals Chamber of Commerce and 11 companies from different industries in different provinces of the country.
"Currently, foreign trade is to protect employment, maintain stability, and maintain growth. If the external demand market is down, the domestic demand market will not be able to make up for it temporarily." Zhong Shan said in analyzing the current situation, "the financial crisis has not yet bottomed out. To date, the United States and Europe The Japanese economy has not seen a significant improvement, and this trend is still spreading to other countries."
Zhong Shan emphasized to the representatives of the company that although China's economy showed some signs of improvement in March, enterprises still need to work hard to overcome various difficulties.
In view of this, the government and enterprises from all walks of life have reached a peak in the attention of the Canton Fair. The newspaper was informed that the daily transactions of the current Canton Fair will be handed over to the State Council on the same day, and at least six officials above the deputy ministerial level will visit the inspection.
Strive for emerging markets to make up for traditional markets
At the symposium on the day, starting from the speeches of representatives from Zhejiang Province, representatives from enterprises in key foreign trade provinces such as Tianjin, Guangdong, Sichuan, Chongqing, Fujian, Jiangsu, Shandong, Yunnan, and Hunan revolved around the past six months, especially this year. The three quarters of the foreign trade situation, the current Canton Fair and the government's policy recommendations have been spoken.
Enterprises generally report that the export volume has dropped sharply since the fourth quarter of last year. Not only have a large number of orders been lost or cancelled, but also orders that have been previously placed are also invalidated due to the bankruptcy of customers.
In the first quarter of this year, especially in January-February, the situation was even worse. Although it improved in March, the reason for this is that the base in January-February is relatively small. In the first quarter of this year, the export of representatives from enterprises in the central provinces such as Sichuan and Chongqing fell by about 30%, while the export of enterprises from Tianjin, Guangdong and other eastern coastal provinces declined by about 15%.
The person in charge of the Chamber of Commerce and Industry also said that the exports of mechanical and electrical products dropped by 20%, 22% and 18% respectively in the first three months of this year. The reason is that the export growth of major products (computers, communication equipment, home appliances) has dropped significantly. Among them, the processing trade, which accounts for 60% of China's exports of mechanical and electrical products, fell by 38%.
It is worth noting that from Yunnan, the representative enterprises mainly exporting to Southeast Asian countries also indicated that the company's exports in the first quarter of this year fell by 77.7%. Similarly, export bus companies from Shandong also said that the industry's export growth in the first quarter fell by 60%.
However, some companies believe that the trend of export decline has been in the end. "From the current order status, it is expected that the decline in exports in the second half will be narrowed," said the Sichuan representative.
For the transaction of the current Canton Fair, the representatives of the company are divided into two factions. One group believes that the current Canton Fair has fallen sharply compared to the Spring Fair in the same period of last year; the other group believes that the volume of the Canton Fair has not been greatly affected, because "most of the buyers who can come to the Canton Fair are purposefully procured. Many of them are professional agents who purchase from a number of companies, and the purpose is very clear."
When analyzing the reasons, enterprises generally believe that the weak demand in Europe and the United States is the root cause of the decline in exports. In addition, the continued depreciation of the US dollar by other countries has led to a decline in the export cost of the country's products, which has weakened the international competitiveness of China's export products.
Taking passenger cars as an example, "The main competitors of China's passenger cars in the international market are Japan and South Korea. Our main market is also the traditional market of Japan and South Korea. At present, the Korean currency continues to depreciate against the US dollar, which has led to a sharp drop in the growth rate of China's passenger cars this year. "The representative of Shandong said.
In view of the weak demand in the traditional export market, many companies have also proposed to “compensate the traditional market with emerging marketsâ€.
The representative of the company in Tianjin said that among the 294 merchants that the company received in the past two days, only four from North America and Western Europe, "We believe that exploring emerging markets can make up for the lack of European and American markets." Guangdong representative also said that in this session Among the customers of the Canton Fair, Asian customers account for about 60% of their total customers.
The company focuses on three major issues
At the symposium on the day, corporate representatives gave policy recommendations to the government, focusing on export tax rebates, exchange rate stability and financial support.
The person in charge of the Electrical and Mechanical Chamber of Commerce said that he hopes that the state will consider raising the export tax rebate for related products in a special period. “There are a lot of customs barcodes and room for callbacks,†he said.
The representative of Tianjin suggested that the tax rebate for construction tool extrusion guns is only 5%. “Although demand has dropped significantly, we can’t cut prices any more because raw material prices have bottomed out and even rebounded.â€
In addition, the long export tax rebate period is also a prominent problem. Some companies said that the export tax rebate period of several months made it impossible for enterprises to use the funds in time.
In the recommendations of enterprises, the issue of "maintaining exchange rate stability and policy stability" is also widely mentioned. The company believes that exchange rate stability can enhance the bargaining power of merchants, and the stability of policies can help the smooth operation of foreign trade enterprises and enhance corporate confidence.
In addition, under the financial crisis, the most prominent problem for foreign trade enterprises is still financing.
The representative of Jiangsu pointed out that some of the country's current financial preferential policies are concentrated in large central enterprises, and it is difficult for general enterprises to benefit. He further suggested that the government can give appropriate support in the financial aspect in the context of a significant reduction in the number of new orders.
Zhong Shan said that financing difficulties are a common problem for foreign trade enterprises, and the business sector will attach great importance to this situation.
In addition, in this survey, a number of companies indicated that the rise of international trade protectionism has hindered corporate exports.
Companies from Chongqing revealed that some of the company's long-term US customers have increased their purchases in the United States.
Zhong Shan said that for the rise of world trade protectionism, the government attaches great importance to it and enterprises should pay more attention to it.
Our reporter was informed that the Fair Trade Bureau of the Ministry of Commerce is establishing a working mechanism for the three-in-one government, business associations and enterprises to deal with foreign trade barriers. Among them, the government will provide legal services and appropriate financial support to enterprises.
Sun Jiwen, deputy director of the Foreign Trade Department of the Ministry of Commerce, said on the same day that the recommendations made by the surveyed enterprises will play an important reference role in the implementation of specific policies in the future.
The whole meeting, Zhongshan, listened very seriously. Especially when he heard that some enterprises mentioned that there was still growth in the first quarter of this year, he was very concerned about the specific situation and reasons. Zhong Shan expressed his position on the representatives of the enterprises present and will carefully study the recommendations made by the company.
Source: 21st Century Business Herald
The Ministry of Commerce investigates Canton Fair enterprises focusing on export tax rebates, exchange rate stability, financial support
On April 17, the first phase of the 105th Canton Fair went to the third day, and the intensive research of the Ministry of Commerce was carried out in secret.