A Sharp Appreciation Of The RMB Will Make The Small And Medium-Sized Textile Enterprises Face More Severe Situation.

It is hoped that the government will strengthen the systematic study of the RMB exchange rate regime, including the most reasonable range of appreciation and the way to avoid risks.

Strive for RMB

I am worried about the recent substantial appreciation of RMB.

The appreciation of the renminbi will bring enormous pressure to the small and medium-sized export enterprises represented by Wenzhou.

Under the current circumstances, a significant appreciation of the renminbi will make SMEs face a more severe situation.

The author estimates that if 2-3 percentage points increase, more than 50% of China's SMEs will be affected or even go bankrupt.

The appreciation of the renminbi, first of all, is the increase in production costs, which will inevitably weaken the income and welfare of employees.

Because the price increase is very sensitive. Most of China's labor-intensive products are repeatedly competing at low cost, low price and low level. Whoever raises the price means that they will withdraw from the domestic and international markets, so they dare not rush to raise prices, only to reduce their income and benefits.

Secondly, a large number of enterprises will be closed down, shut down and semi shut down, which will lead to a large number of workers losing their jobs.

At present, the number of employment provided by SMEs in China is 75% of the total labor force, accounting for 80% of the new employment opportunities in the society.

China's employment pressure itself is very large. If a large number of small and medium-sized enterprises fail again, no doubt it will be worse.

It can be said that small and medium-sized enterprises bear a lot of employment pressure, and they are also the main creators of national wealth and the important foundation of social stability. If enterprises do not have profits, they will cause social instability and directly damage the foundation of the national economy.

We must strive to maintain a certain degree of stability in the RMB exchange rate, and we can not easily adjust it. At least we must stick to it for 2-3 years and win the pformation and upgrading of SMEs.

No matter what the purpose of foreign countries and what political and economic impacts should be exerted, they should resolutely resist this pressure.

Since the beginning of this year, we have been concerned about the issue of RMB exchange rate, and have made investigations in the enterprises to listen to opinions.

It is reflected that every 1 RMB percent appreciation of the renminbi will lead to a decline in export profits of many enterprises.

For example, the profit of cotton textiles has dropped by 12%, the wool textile has dropped by 8%, and the clothing industry has dropped by about 13%.

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For this reason, we actively appeal to the government to control the appreciation of the renminbi, and make suggestions to the government through the forum and other channels, hoping to maintain a stable exchange rate and withstand foreign pressure.

At the same time, I hope that the government will strengthen the systematic study of the RMB exchange rate mechanism, including the most reasonable range of appreciation and the way to avoid risks.

Without a word, the current research in this area is still very weak and passive. It is not scientific to damage the domestic economy and reduce the pressure on foreign countries.

We must establish a scientific regulation mode and calculate the most reasonable range of exchange rate fluctuation according to the specific circumstances of different periods.

Of course, in the face of the possible appreciation of the renminbi, SMEs still need to take precautions to minimize the negative effects of appreciation.

First of all, it is necessary to reduce production and operating costs in many ways and ways, and to benefit from management. Secondly, we should accelerate the pformation of economic development mode and mode of operation, optimize the structure of export products, promote product upgrading, improve the technological content and added value of products, change the situation of "passive beating", and finally, actively expand foreign direct investment and accelerate the pace of "going out".

This will not only bypass the heavily guarded trade barriers, but also enhance the resistance to exchange rate changes, reduce the impact of RMB appreciation and strive for greater foreign market share.

In the near future, RMB appreciation and trade friction are all important factors that affect the export of Chinese enterprises, but the impact of RMB appreciation is greater. Trade friction can not be solved overnight. It is a long-term impact.

For enterprises, the two effects must be circumvented.

Relatively speaking, in terms of RMB appreciation, we have the initiative, so we must emphasize "stick to it".

China has the final say in international trade disputes, so we must stand firm and resolve disputes as much as possible.

At the same time, the two are related.

Foreign manufacturing contradictions and provoking trade disputes often start with accusing the RMB exchange rate.

Today, the United States touted the issue of RMB exchange rate, in fact, this is a disguised form of trade protectionism.

It is a common tactic used by the United States to reduce its trade deficit by forcing its currency to appreciate.

This requires political wisdom at the government level and "wits and wits" with foreign countries.