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Chinese garment exporter recollects hard experience in 2008 (3) |
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16:32, January 04, 2009 |
PROSPECT
"As the worldwide financial crisis worsens, China will be confronted with bigger challenges in 2009 to stabilize foreign trade," said Commerce Minister Chen Deming.
Chen cited further shrinkage in demand from the United States, European Union and Japan, where economies had plunged into recession due to trade protectionism and increased trade frictions.
But others have seen some positive factors. Zheng estimated "The hardest day may have passed," looking optimistically at his product logo in an interview with Xinhua.
In Zheng's view, export-oriented enterprises will meet smaller cost pressures in 2009. This was attributed to China's continuous rise of export tax rebates in 2008. Garment exports enjoy a 14 percent rebate at the end of 2008, compared with 11 percent on August 1 and 13 percent on November 1.
In addition to raising tax rebates for exporters, China made policies to encourage upgrading processing trade, and has taken measures to ensure credit extension for smaller businesses.
Meanwhile, China's exports of daily-use consumer goods are still competitive in international markets, and there is potential for trade growth with emerging markets and developing nations, said Zheng.
To help small and medium-sized enterprises raise funds and improve cash flow, the State Administration of Foreign Exchange (SAFE) raised exporters' advances on foreign-currency payments to 25 percent in late December from the previous 10 percent.
SAFE official Cai Qiusheng said "Enterprises that have good credit and haven't violated any foreign-exchange regulations can qualify for the new limits. The financial crisis has caused difficulties for many enterprises and this move would give them more operating capital."
Zheng also saw growing competitiveness from continuous depreciation of RMB, China's currency.
China will not hinge upon depreciation of RMB to expand exports, said Commerce Minister Chen Deming.
"Given shrinking demand from abroad, the effect of export stimulation through currency depreciation is rather limited," said Chen.
Zheng is set to mainly rely on domestic sales in 2009. "But I will not give up export, since I have been in the sector for so many years. This time, I will tap the world market with my own brands."
Source:Xinhua
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