Zhejiang, A Major Foreign Trade Province, Has Faced Severe Tests.

Recently, Hangzhou Customs announced Zhejiang's foreign trade data in the first quarter of this year.

Due to the slow global economic recovery and frequent trade frictions, the total import and export value of the province is 69 billion 950 million US dollars in the first quarter of this year, up 5.2% from the same period last year, while it is lower than the national average growth rate by 2.1 percentage points.

This is the first time Zhejiang's quarterly foreign trade growth has dropped to single digits since 2010.

Order profit double reduction

Guan Weimin, chairman of Hangzhou Xinyi garment making company, has been busy opening up Hangzhou Tower new stores this year.

In July this year, the first domestic women's clothing store in Hangzhou Xinyi garment will be opened at the Hangzhou Tower.

As a foreign trade enterprise, sales of Xinyi garments decreased by 6% in the first quarter of this year, and the volume of business is expected to shrink by 10% this year.

"The key is to have orders and no money to earn, to sell a piece of clothing, the profit is only about 1%."

Guan Weimin said that the problems he faced now are more serious than the global financial crisis in 2008.

Hangzhou's foreign trade import and export company, Fang Zhong, said that this year's Christmas products profit is also very low, and now almost rely on export tax rebate support.

Customs statistics show that in the first quarter of this year, Zhejiang's export growth was slow. The export volume of traditional bulk export commodities such as electromechanical products, textile yarns, fabrics and products and garments was less than 5%, while the export of high-tech products decreased by 3.5% compared to the same period last year.

The key factor is competitiveness decline.

The impact of RMB appreciation and the decline of international market demand on export enterprises has not been reduced. Coupled with the rising domestic factor costs, the export enterprises in coastal areas are under great pressure.

Some enterprises say that they do not have orders but are afraid of orders. "The more you receive, the more you will lose."

Guan Weimin said, because abroad

Guan Weimin explained that Xinyi clothing had been established for more than 20 years, and the management cost of all aspects has been very scientific. However, the rise and fall of personnel wages is the most critical factor for enterprises to control costs. The monthly salary of Xinyi garment workers was only around 2000 yuan the year before. This year has already been 4000 yuan, plus the rising cost of raw materials, rents and pportation costs, which has eaten up the profits of his products.

Zhang Handong, director of the international trade and economic research center of Zhejiang Provincial Department of Commerce, said that the current situation of Zhejiang's foreign trade enterprises is more severe than that of 2008.

He explained that the reduction in international external demand at that time was only temporary; and now that Zhejiang's foreign trade is facing the fact that the competitiveness of export products is declining, this problem will persist for a long time: "Zhejiang is now on the one hand, the brand competitiveness has not been formed, on the other hand, the demographic dividend has been depleted, and the price competitiveness is not as good as that of Southeast Asian countries. In the short term, it will have to face the embarrassing situation of not being able to get low."

The era of rapid growth has passed.

Zhang Handong said that according to the import data in the first quarter of this year, the import of mechanical and electrical products and high-tech products dropped sharply, which proved that the enthusiasm of foreign trade enterprises in Zhejiang is weakening. Foreign trade enterprises have already faced a critical period of survival and are in urgent need of policy support from the government departments.

At least, we should restore support in the 2008.

In fact, the growth rate of Zhejiang's foreign trade is lower than that of the whole country. There are also special reasons.

Zhang Handong explained that Zhejiang's share of exports to the EU was far higher than the national average.

European Union countries

Zhang Handong said that if the measures are right, it is possible for Zhejiang to achieve 10% growth in foreign trade throughout the whole year, but it is impossible to grow 20% or even 30% over the past year.

The promotion of labor costs will force enterprises to increase labor productivity and pform to capital and technology intensive exports.

Export enterprises should work hard to improve internal value, increase the added value of export products, upgrade the structure of export products and consolidate the foundation for future development.