Four major problems facing the export of electromechanical products in China und
1, Chinese exports to the EU
Electrical
Products are facing new restrictions on requirements
8 13, the European Union "Directive on Waste Electrical and Electronic Equipment" (the WEEE Directive) has been formally implemented, various types of machinery and electronic products exports to the EU producers in China will bear the high additional cost of electronic waste. WEEE directive is to control the major electrical and electronic waste, while achieving reuse of these wastes, the bill requires the product manufacturers, importers and
Dealers
Responsible for recycling and disposal of waste into the EU market of electrical and electronic products, no doubt that the Chinese company exports to the EU added a no small cost. According to estimates, this directive will be implemented could lead to China's home appliance exports to the EU rose 10 percent, while the costs of the result is compared with foreign products
Competition
Power drops to a certain extent, inhibit the growth of China's export of electromechanical products the same.
And July 1, 2006, the other involving hazardous substances in raw materials, machinery and electronic products qualified instruction "in the electrical and electronic equipment on the Prohibition of the Use of Certain Hazardous Substances Directive" (ROHS Directive) will also be implemented on the EU requirements electrical and electronic products market may not contain lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls and river diphenyl ethers in the six hazardous substances. According to estimates of China Electrical and Exporters Association, the implementation of these two directives, the EU will make China's exports of electromechanical products in 71% of the total affected.
The implementation of EU directives
two export of electromechanical products in China will have a significant impact on the EU, specifically will impact China's large household appliances, small household appliances, IT products,
Power Tools
Electric electronic toys,
Illumination
Equipment, home
Electricity
Sub-device, automatic vending equipment 8 categories related products and their upstream and downstream businesses.
2,
RMB appreciation
Expected to make short-term mechanical and electrical products export growth momentum has been hampered
2005 7 21, U.S. dollar against the RMB trading price was adjusted to 1 U.S. dollar to 8.11 yuan revaluation of 2%, which marked the introduction of market supply and demand and with reference to a basket of currencies, managed floating
Exchange rate
System. Although a lesser extent, the renminbi appreciation, China's export of electromechanical products did not lead to a greater impact, but the policy changes to strengthen the yuan appreciation expectations. The RMB appreciation will directly improve the domestic raw material and labor costs, making exports weakened international comparative cost advantage, export-oriented enterprises, especially for primary products, the cost increases will be a direct result of its competitiveness on foreign markets is reduced, low-cost advantage will be further weakened. Occupied most of China's exports share of mechanical and electrical consumer electronics products, home appliances, data processing equipment is sensitive to exchange rate fluctuations, the most vulnerable to direct impact, but these products are facing fierce international competition, they often rely on cheap labor support low-cost advantage, exchange rate fluctuations can easily lead to the export substitution, loss of customers and markets.
Moreover, domestic electrical and mechanical industry, there are still many weaknesses: first, processing
Trading
Export share of the total export of electromechanical exports nearly 70%. Second, the state-owned enterprises export growth slow electromechanical, the first 10 months increased by only 14.4%
Private enterprise
Although the increase of 69.4%, but less than 10% of the total, while foreign exports accounted for 73.9% of total exports of electrical and mechanical.
2004, the 7625 state-owned enterprises in electromechanical exports, exports of more than 100 million U.S. dollars in only 52, involving mechanical and electrical exports as many as 27,864 foreign-funded enterprises, which export more than 100 million U.S. dollars of a 357, 5 million to 100 million U.S. dollars up to 283 between. Furthermore, by raw material prices, energy supply and other factors, 2004
Motorcycle
,
Air conditioning
Device,
Refrigerator
,
Transformer
Considerable part of such price increases have varying degrees, when coupled with the impact of rising exchange rate, international competitiveness must greatly reduced. Therefore, the expected appreciation of the renminbi will likely continue in the short term to make mechanical and electrical products export growth momentum has been hampered.
3, energy, raw materials supply will increase business costs
Because China's export of electromechanical products in most of the structure is resource-intensive products, energy and raw material prices will inevitably lead to increased business costs, prompting them to increase their export prices, export prices rose but nowhere near as raw material products increase, corporate profits be further compressed.
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