Foreign trade enterprises need to ease risks through multiple channels

2023-08-30 13:37:04

2013Since 2013, China's export-oriented SMEs have generally faced "internal and external troubles" such as RMB exchange rate fluctuations, rising labor costs and sustained weak external demand. It is generally believed that the traditional era of relying on demographic dividends and exchange rate advantages has come to an end, and foreign trade enterprises need to transform and upgrade multi-channel risk mitigation.
"How many companies have gone up and how much they have lost is a continuous drop in the value of the renminbi." At a business forum held in Hankou, this remark became the opening remark of the leaders of several export enterprises.
Zhou Xiaochuan, governor of the People's Bank of China, made it clear at the annual meeting of the International Monetary Conference in 2013 that China will not enhance its domestic competitiveness through competitive currency depreciation, reflecting China's thinking of promoting economic transformation through price-push mechanism and domestic reform.
Many entrepreneurs believe that enterprises can not focus on the exchange rate all day, nor can they rely on the "demographic dividend," the transformation and upgrading is the fundamental way out. Enterprises should use their own marketing ideas, professional ability, research and development and product innovation to resolve the risks, to the international market fair competition. High value-added products and first-class marketing and management offset exchange rate fluctuations and rising costs.


Tao Yiping, president of the Fujian Branch of the Bank of China, suggested that foreign trade enterprises should enhance their awareness and ability to defuse and resist financial risks, and use RMB forward and option derivatives to lock in costs and benefits ahead of time. At the same time, they can also use RMB for trade settlement to avoid exchange rate risks.
Experts believe that, while exporting enterprises accelerate the transformation and upgrading, the government should ease the tax burden for enterprises, build a platform, do a good job of service, and create a relaxed external environment. Only by working together can we really create an upgraded version of China's economy.