China'S New Trade Policy To Ease The Pain Of Surplus Enterprises

Scientific macro adjustment of foreign trade policy is inevitable and necessary at the moment, but we are not afraid of policy changes.

This year, in order to alleviate the "surplus" problem, the state has issued a new foreign trade policy continuously. Since July 1, 2007, China has substantially reduced the export tax rebate rate of some commodities. In July 23rd, the Ministry of Commerce and the General Administration of Customs jointly issued a notice to announce a new batch of catalogues with restrictions on industry and trade.

"This adjustment is unprecedented compared with previous adjustments in history."

A foreign trade enterprise circles commented.

This round of policy adjustment starts from ensuring sustained economic growth and creating a better foreign trade environment.

It can be expected that the large and small foreign trade enterprises all over China will face a new round of trials. There are risks and opportunities.

At the moment, these enterprises have to face the "throes" brought about by the sudden tightening of policies.

After the implementation of the tax rebate policy, the profit of our products dropped from 13% to 9%, the export cost increased by about 4%, and the gross profit rate decreased by 2.3% to 2.4%.

Our products are mostly handicraft products and light industrial products, so the tax refund policy has the greatest impact.

Qian Jingqi, general manager of Hongye, a listed company, has no choice but to respond to reporters from Xiaokang.

However, Qian Jing Qi also indicated that he could understand the adjustment of the country's foreign trade policy.

He believes that policy changes will help adjust the structure and level of export products.

In the long run, it will be more conducive to the survival of the fittest. Hongye shares will make use of policy adjustment as an opportunity to further integrate related businesses. "The future should be more promising."

In fact, it is not just a series of policy changes in Hong Kong's Listed Companies in emergency response.

Recently, China Fiberglass (600176) announced that the export rebate rate of the company's glass fiber products will be reduced from 13% today to 5%.

In 2006, the export volume of the company was $136 million 983 thousand and 300, and the total profit from static profit in the year of 2006 will be reduced by 10 million 958 thousand and 700 US dollars according to the 8% reduction in export tax rebate rate, accounting for 26.39% of the total profit of 324 million 259 thousand and 500 in 2006.

At the same time, Jingxin Pharmaceutical (002020) also announced that the export tax rebate rate of quinolone pharmaceutical products will be reduced from 13% to 5%, and the reduction of the export tax rebate rate will have a significant negative impact on the company's performance in 2007 and subsequent years.

As of August 31st, 28 listed companies issued a notice on the impact of the adjustment of the export tax rebate rate. According to the prediction of the profit decrease in the announcement, the export tax rebate adjustment affected the related companies' performance by 14.09%.

Besides, the new deal in processing trade has also brought a new round of "shock wave" to the processing trade enterprises.

"The cost is even higher. We estimate that after the implementation of the new policy, there will be an annual margin of about 60 million yuan."

Xu Di Gao, manager of Panyu Qixin Knitting Co. Ltd., told reporters.

Xiao Zhenyu, director of the Guangzhou Municipal Bureau of foreign trade and economic cooperation, also believes that the adjustment of the policy will have adverse effects on some processing trade enterprises in the short term, especially for Guangzhou's textile and footwear, jewelry, leather, chemical, feed and other traditional industries.

According to the estimates of Guangzhou Municipal Foreign Trade and Economic Cooperation Bureau, more than 470 processing trade enterprises in Guangzhou were affected by this policy adjustment. According to the estimated import and export volume of processing trade in Guangzhou last year, 2 billion 587 million US dollars were included in the new restricted category, accounting for more than 10% of the total export value of processing trade in Guangzhou, and the related enterprises should increase the margin burden of 1 billion 245 million yuan.

Small and medium-sized enterprises have been adjusting their faces to adjust the "shock wave" for this round of policy adjustment. At present, all relevant enterprises are actively organizing to minimize the impact.

Qian Jingqi told reporters on "well-off" that the company will make use of this policy change to gradually change the mode of trade growth and create a new value chain of foreign trade, so that the company can not only provide quality products, but also provide various value-added services, promote the pformation of companies to compound suppliers, and expand the company's living space horizontally.

The strategic vision of our company is expected. As a listed company with profound foreign trade tradition, the advantages of capital, product base and R & D will provide strong support for the development of the company.

Compared with the strategic reconstruction of big enterprises, many small and medium-sized enterprises are reluctant to support under the continuous policy shock.

We can understand the starting point of the policy, but several products of our company have been affected by tax rebates of varying degrees.

Our profits have been very low, and now the tax rebate is reduced and profits are even lower. "A company named Zhou Xing, a Northwest health care raw material producer, told the" well-off "reporter," profits are reduced, but the cost is constant. In fact, after the implementation of the tax rebate policy, we basically lose no money. "

According to reporters, the company was founded in 2006, and its products are mainly exported to Japan, the United States and Europe.

"We intend to intensify our efforts to develop new products and improve the pricing and bargaining power of our products after a period of accumulation of operations. Now it seems that this plan has to be delayed."

The executive reluctantly said.

According to the reporter, a small number of small and medium-sized enterprises, similar to the operation of the Northwest Company, are in the minority in the country. Some are in the initial stage of entrepreneurship, some have just had some accumulation. Under the adjustment of the foreign trade policy, some of the small and medium-sized enterprises are facing the test of survival while facing the "contraction front".

The Pearl River Delta region is a developed area of processing trade, where a large number of Hong Kong funded, Taiwan funded and domestic small and medium-sized enterprises are mainly engaged in processing trade.

According to an insider in the processing Christmas gift industry in Guangzhou, after the implementation of the new deal in processing trade, some factories in the industry have a great impact.

"At present, in order to cope with the change, conditional factories are making an effort to reduce costs, improve equipment and reduce labor force."

"At present, around 90% of the world's Christmas gifts are processed in the Pearl River Delta region. The low price competition in their own industries is very intense. After the implementation of the new deal in processing trade, the profits of the whole industry have dropped by 3% to 5%, and some small factories are actually struggling on the brink of life and death." the industry told the "well-off" reporter, "the new deal stipulates that the" margin pfer "management of the account margin should be carried out. When importing enterprises, they should pay a certain proportion of import duties and a certain proportion of the value added tax, which is too difficult for the small factories whose capital is only hundreds of thousands of yuan.

Finally, the reporter revealed to the "well-off" reporter that, as far as he knows, there are already individual enterprises shutting down and switching to production, including Hong Kong funded and domestic capital.

Not long ago, Zhang Yansheng, director of the national development and Reform Commission's Institute of foreign affairs and director of Beijing Institute of foreign studies, went to Xiamen and other places to investigate the response of enterprises to the adjustment of foreign trade policies.

The results of his research also show that most of the products of SMEs are concentrated in "two high and one capital" and labor-intensive sectors, so the impact of foreign trade policy adjustment is the biggest.

This is also recognized by Wang Xiaohua, deputy director of the Ministry of Finance and taxation. He thinks that the adjustment may make the small and medium enterprises that are mainly competitive means facing the adjustment of survival, and the large and medium-sized enterprises that take quality and brand as the main means of competition are opportunities for development.

According to statistics, in the foreign trade enterprises of the whole country, small and medium-sized enterprises account for about 90%.

There is no doubt that these small and medium-sized enterprises have played a crucial role in improving the local government revenue, increasing employment and promoting the overall development of the local government in the rapid economic development in recent years.

Experts said that in the process of foreign trade policy adjustment, if a large number of small and medium-sized enterprises are going to decline or close, the chain reaction that triggered will not only be economic, but also a series of negative reactions in society.

Jiangsu Su Mei Da group is mainly engaged in the import and export of mechanical and electrical products. A person in charge said that the total number of employed persons in the whole industry was 400 thousand. After the export tax rebate policy was adjusted, it was estimated that 250 thousand workers would be unemployed.

From the perspective of the development of international trade, a large number of small and medium-sized enterprises are also shouldering the important task of promoting the sustainable development of the economy.

At present, China's neighboring developing countries are very competitive with us, such as India, Vietnam, Philippines, ASEAN and some other countries and regions, which share similar conditions and endowments, and have cheap labor and resources.

"They are actually a" backup "for Chinese investment. If some small and medium-sized enterprises have lost their products, then the products can only be pferred to neighboring countries, which is a great loss for our country.

Zhang Yansheng pointed out to "well-off" reporter.

In addition, the fact that small and medium-sized enterprises are the most innovative and dynamic is one of the most innovative and dynamic groups in which some of them can grow into large enterprises.

"I personally believe that the adjustment of the current policy has made some enterprises that are relatively thin profits can not withstand the pressure, but they should not let these enterprises die on their own."

Zhang Yansheng said.

Small and medium-sized enterprises need help. "We should see that SMEs with the ability to raise prices and develop new products are only part of them. Most enterprises lack capital, talent and technology to adapt to the new policy environment.

Therefore, our policy should consider how to help these SMEs. "

Zhang Yansheng told reporters "well-off".

What should be seen is that China is in the stage of heavy chemical industry, and most of the small and medium enterprises most affected by policies are producing high pollution, high energy consumption and resource products.

Zhang Yansheng believes that small and medium-sized enterprises as the main body of market development, whether it is the government, society or industry leading enterprises, has the responsibility to help them complete product pformation and technological pformation, so that they can embark on the track of cleaner production.

From the perspective of capital, we can set up some funds to help enterprises pform and upgrade or support large enterprises.

Technically speaking, we should admit that the technological strength of small and medium-sized enterprises is very weak. According to statistics, 93% of China's Enterprises above Designated Size have no R & D activities.

Because R & D is high risk, high investment and high return, it is too expensive for small and medium-sized enterprises.

This requires the national innovation system to enable universities and research institutes to provide technical support and joint research and development for enterprises, and encourage them through some tax incentives.

This has also been approved by Zhou's top executives. "It is suggested that the state can set up a directional support fund similar to the" SME development fund ", which can help enterprises to pfer part of R & D risk.

In addition, Zhang Yansheng also suggested that supporting small and medium-sized enterprises needs to create a good investment environment in the Midwest.

At present, the pressure on the environment, ecology, land and labor shortage in the eastern region has become more and more obvious. However, in the Midwest, these advantages have led to the pfer of some small and medium-sized enterprises to the central and western regions.

But objectively speaking, the investment environment in the Midwest still has a large gap compared with the eastern region.

Therefore, the central and western regions also need to provide favorable pfer conditions for enterprises. This part also needs to be done according to the law of market economy.

In the interview, some business people suggested that scientific macro adjustment of foreign trade policy is inevitable and necessary at the moment, but not afraid of policy changes.

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