The influence of digital currency on small and medium sized ente

5. If it is a processing enterprise engaged in foreign trade, the appreciation of RMB means that foreign purchasers must buy your things at a higher price, which will certainly have an impact on orders. If RMB appreciation is 5%, China's textile exports may drop by 20% to 30%. The following is the expert's answer: the appreciation of RMB has made the export price of our procts relatively higher, the price competitiveness of foreign procts lower, the operating costs of export-oriented small and medium-sized enterprises increase, the export quantity and export profits decrease, the operating risks increase, the competitive pressure increases, and the ability to attract foreign investment decreases< (1) proction cost increase
e to the depreciation of the US dollar, changes in the exchange rate, rising prices of raw materials, rising labor costs, and rising land prices, the proction and operating costs of small and medium-sized enterprises in China have risen sharply. The main raw materials of the enterprise, such as steel, copper, iron, corn, soybeans, etc., basically increased by more than 60% from the beginning of 2007 to June 2008. As a result, the proction cost price of some enterprises is higher than that of export procts. China's small and medium-sized export enterprises mainly use price as a means of competition, with low export price elasticity and small price rection space. The appreciation of RMB will greatly weaken the competitiveness of China's small and medium-sized enterprises in the international market. With the rapid increase of proction costs, export-oriented small and medium-sized enterprises are facing great difficulties. Due to the rapid rise of proction costs and other reasons, about 20% of the 300000 small and medium-sized enterprises in Wenzhou, Zhejiang Province are facing bankruptcy< (2) the decrease of export profit
the appreciation of RMB means that the export price of procts is relatively higher, which leads to the decrease of price competitiveness of China's procts in foreign markets, the decrease of market share of export commodities and the loss of profits of export enterprises“‘ If the RMB rises by 10 cents, the company will lose tens of millions of yuan. " In addition, the export income suffered by export enterprises is converted into RMB exchange loss, which further reces the profits of export enterprises. As China's export-oriented small and medium-sized enterprises mainly focus on primary procts and labor-intensive processing procts, and relatively few high-tech and high value-added procts, they mainly rely on cheap labor, give full play to the comparative advantages of traditional instries, and participate in the international market competition through price advantages, so the export profit margin is very low. The appreciation of RMB will directly weaken the international competitiveness of export commodities, seriously affect the export of small and medium-sized enterprises with low price and low technology content, lead to the decline of profit margin and economic benefits of enterprises, and many enterprises are facing the situation of being eliminated. For example, China's textile and clothing, home appliances, toy processing, communication equipment, computer and other processing and manufacturing instries mainly obtain certain comparative advantages in the international market at low cost. The appreciation of RMB will greatly affect the export of such procts and the profits of the whole instry“ With every 1% appreciation of RMB, textile export profits will decline to varying degrees. Among them, the profit of cotton textiles decreased by about 12%, wool textiles decreased by 8%, and clothing instry decreased by about 13%. "
(3) the increase of operational risk
the appreciation of RMB exchange rate and the increase of uncertain factors of exchange rate change bring greater transaction risk, accounting risk and economic risk to export-oriented small and medium-sized enterprises. In the export trade of goods and services, for those export enterprises that have sold goods but have not received payment or signed orders, e to the appreciation of RMB exchange rate, export enterprises have to pay more domestic currency, which brings transaction risk and accounting risk, and forms direct exchange loss. The rise of RMB exchange rate has also brought great pressure to those small and medium-sized enterprises with large foreign exchange receivables. As China's foreign trade mechanism and finance are not perfect, lack of mature foreign exchange market, export-oriented small and medium-sized enterprises' awareness of exchange rate risk prevention and resistance are weak. RMB appreciation speed is too fast, from the long-term impact on enterprises, further increases the difficulty of export proct pricing, increases the risk of enterprises, resulting in the deterioration of business status“ This is also an important reason why trade enterprises oppose appreciation. The degree of deterioration depends on the specific situation of enterprises. Enterprises whose proct markets are mainly concentrated in foreign markets, such as a large number of processing trade enterprises, may suffer more serious financial deterioration. "< (4) increasing competition pressure
for a long time, most of China's small and medium-sized enterprises are mainly labor-intensive procts and low value-added export procts, and the intensity of management innovation and scientific and technological innovation is low. The appreciation of RMB has led to a substantial increase in enterprise costs. These small and medium-sized enterprises relying on low price competition to win the competitive advantage in the international market are struggling, Some small and medium-sized enterprises are facing the difficulty of closing down. The appreciation of RMB also makes the labor price of China significantly higher than that of Pakistan, Bangladesh and other neighboring countries. For example, the labor cost of Chinese garment enterprises is 66-68 cents per hour, while that of Pakistan and Bangladesh is 41 cents per hour and 39 cents per hour respectively. The wage level of workers in China's coastal areas is 69 cents per hour, compared with 25 cents per hour in Bangladesh and 35 cents per hour in Pakistan. With the appreciation of RMB, the export-oriented small and medium-sized enterprises in China's textile and clothing, household appliances, processing and manufacturing instries no longer have the advantage of occupying the international market mainly by relying on low prices, and their competitiveness has declined< (5) the decline of the ability to attract foreign investment
the appreciation of RMB will lead to the rise of proction costs, the decrease of profits and the increase of business risks, which will weaken the enthusiasm of foreign investors, "increase the cost of foreign direct investment in China, and in the situation of competition in the surrounding areas, it is likely to lead to the decrease of the introction and utilization of foreign direct investment in China.", So as to restrict the expansion of proction scale and proction capacity of small and medium-sized enterprises. Due to the appreciation of RMB, South Korean proction capital has fled in Shandong Province in recent years< Third, measures and countermeasures should be taken by export-oriented small and medium-sized enterprises for RMB appreciation. China's export-oriented small and medium-sized enterprises must be rational thinking, scientific decision-making, calm response, take corresponding measures and countermeasures, and constantly improve the competitiveness and anti risk ability of procts in the international market< Before the exchange rate reform, most of China's export enterprises, in order to facilitate the calculation of costs and income, have been mainly using US dollars in international trade settlement, rather than using the frequently changing exchange rates such as euro and yen. The exchange rate reform enables RMB to be managed and adjusted with reference to a basket of currencies. At present, the appreciation of RMB mainly refers to the appreciation of RMB against the U.S. dollar, and it is not necessary for RMB to appreciate against the euro and other currencies. Export enterprises should strengthen the study of RMB exchange rate mechanism, pay special attention to the exchange rate changes of RMB against US dollar, euro, yen and other major currencies in the near future, and deeply study the impact of exchange rate changes on enterprises. In the valuation of export commodities or assets business, we should adhere to the principle of "settlement of foreign exchange as soon as possible, holding a proper amount of foreign currency, flexible management of foreign currency claims and debts", carefully and flexibly choose appropriate and safe settlement methods, speed up the time of collection and settlement of foreign exchange, and avoid the losses caused by the revaluation of RMB. We should timely adjust financial instruments according to the actual situation, adopt flexible settlement methods, use multi currency settlement, and appropriately use foreign exchange forward trading, hedging and other means to lock in exchange rate risk< In the face of RMB appreciation, export-oriented small and medium-sized enterprises should work hard, seek benefits from management, and constantly rece proction and operation costs. On the one hand, enterprises should strengthen internal management, straighten out internal processes, and make great efforts to rece procurement costs, manufacturing costs, management costs, and operating costs from procurement, proction, sales, storage and other aspects, so as to improve efficiency, rece costs, and rece unnecessary expenses as much as possible. On the other hand, we should rece the cost of proction and operation through multiple channels and ways. For example, set up sales companies or exclusive stores abroad, or directly contact with foreign businessmen to develop e-commerce, rece the intermediate links of export, improve transaction efficiency and rece transaction costs; Make full use of foreign resources and energy, increase the proportion of imported raw materials in procts, and rece the cost of raw materials; Transfer the proction base to the less developed areas, make use of the local lower price human resources and natural resources, and rece the proction cost; Expand the proction scale of enterprises, rece the cost with the economic benefits of scale< At present, China's export-oriented small and medium-sized enterprises mainly focus on primary procts and labor-intensive processing procts, while there are relatively few high-tech and high value-added procts. With the appreciation of RMB, the comparative competitive advantage of low price of labor-intensive procts will disappear. Enterprises must tap the potential, develop procts with high added value and high-tech content, adjust the proct structure and speed up the upgrading of procts. Enterprises must take increasing research and development efforts, improving the quality of procts, increasing the scientific and technological content and added value of procts as the fundamental methods to deal with exchange rate changes. On the one hand, we should strengthen independent R & D, change the operation mechanism, enhance the ability of independent innovation, develop new procts, and increase the proportion of our own intellectual property rights and core technologies; On the other hand, we should make use of RMB appreciation, actively introce foreign advanced equipment and technology, strengthen absorption and digestion, speed up technological innovation, promote proct upgrading and upgrading, and improve the scientific and technological quality and level of procts, so as to graally transform China's export-oriented procts from labor-intensive and resource intensive to new procts with high technology content, deep processing and high added value, Improve the international competitiveness and anti risk ability of China's export procts< (4) to expand foreign direct investment and speed up the pace of "going out"
the appreciation of RMB enhances the international purchasing power and foreign investment ability of enterprises, and creates currency exchange advantages for enterprises' foreign investment. Export oriented small and medium-sized enterprises should have a global vision, vigorously explore the international market, implement the export diversification strategy, and realize the export from proct to capital and brand in a planned and step-by-step way. Powerful enterprises can make full use of "two markets and two resources" at home and abroad by means of combination and reorganization“ Enterprises can choose to set up enterprises and factories abroad, and can use local proction factors to proce and sell in foreign countries; If the cost of proction factors in the target market is high, enterprises can also choose a third country with low factor cost to proce and export to the target market. " In this way, we can not only bypass the heavily guarded trade barriers, but also improve the resistance to exchange rate changes, rece the impact of RMB appreciation, and strive for a greater share of foreign markets
(5) to build a brand and take the road of differentiation and brand operation
under the situation of world economic globalization, Chinese enterprises are facing a market competing with world brands. Most export-oriented small and medium-sized enterprises in China lack long-term brand planning. Many enterprises have been competing in the international market through low prices, so the profit margin is very small. China's export enterprises