China's import and export is still in the normal situation and foreign trade operations is generally good, according to the spring "Report on the Foreign Trade Situation of China" which was recently released by the Ministry of Commerce. At the same time, China's foreign trade environment at home and abroad continues to tighten and uncertain factors are still on the rise.
According to the report, the impact of American subprime mortgage crisis is further deepening and spreading, and has begun to develop in depth in areas like consumption, investment. "If the U.S. economic growth continues to slow down, the growth of China's exports to the U.S. will continue to decline."
The report says that the continued rise of primary commodity prices at the international market will put mounting pressure on China's export enterprises. As a manufacturing and trading power, China has become the key bearer of increasing raw material prices. Profit margins of China's export enterprises will be squeezed, which will result in profit decline and rising operating pressure.
At present, the main domestic factors that affect exports are the appreciation of the RMB, rising prices of raw materials, increases of labor and environmental cost, higher interest rates and last year's foreign trade policy adjustments.
In the near future, enterprises need a period of time to perform structure adjustment and absorb the rise in cost, so their profits could be affected in the short term, the report says.
By People's Daily Online
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