Mechanical and electronic products in China face huge cost pressures

'Falling off', make China's mechanical and electrical products exporters mood also more and more. 'The recent euro exchange rate volatility is operating revenue for the company to bring a big pressure, main reason is a lot of orders in 3 ~ 6 months ago has targeted price. 'A senior told reporters yesterday that the euro now, the company will perform at the beginning of the contract, and European customers to pay or the euro, means that these orders have no money to earn. In China, like the TCL communication top face huge cost pressure of mechanical and electronic products exporters. With the modest recovery in the global economy, and speed up the pace of Chinese enterprises 'going out', at the same time, considering the low base last year, this year our country mechanical and electrical products import and export of the restorative growth. 'Growth in April, China's exports to Europe also remained at 25%, but the response may be a lag. In 5 ~ 6 months, especially in the third quarter reaction will be more obvious, is likely to decline in six to seven points. 'The Ministry of Commerce international economic and trade institute huo jianguo has said publicly that export enterprises may be affected mainly mechanical and electrical companies, because exports, mechanical and electrical products accounted for more than half. During the Canton fair this year, China mechanical and electronic chamber of commerce to the survey of 296 companies, while the mechanical and electrical industry product clinch a deal the price increased by 8% on average, but due to rising raw materials and labor, the average cost will be increased by 10%. The recent profits dropped 1% than the same period last year. The euro more mechanical and electrical products of the profit levels down. 'In Europe orders based on settlement, the impact will be, but is not big. 'Galanz gui-zhong liu, deputy general manager of responsible for overseas business, points out that the euro will affect the market for Chinese goods in Europe, but the problem is that Chinese goods in Europe market prices is difficult,' basic has already been completed in the first half of the order, will affect the second half of the European exports, also look at July and August orders. 'In the face of the pressure of the euro, mechanical and electrical enterprises have to rack one's brains, seek to mitigate losses. A senior, said * * quarter due to decline in the euro, the euro recorded part exchange loss, the company's strategy is through the central to handle matters relating to management, to monitor the company of the total foreign exchange risk, focus on hedging transactions with the bank at the same time, emphasize the functional currency. In the face of continued euro weakness, the Ministry of Commerce spokesman yao jian, said at a regular press conference Thursday at Chinese export enterprises will take more cost pressures, and China's exports to Europe have been negative effects, 'we will further focus on the sovereign debt crisis, timely improve China's foreign trade policies. 'Yao said. But the chairman secretary Li Fei DE argues that basic has shifted to Asia, European companies on the market sales of electrical appliances product from China, mostly from this point, the euro's influence on the Chinese electrical appliances enterprise is short term. Mechanical and electronic products in China face huge cost pressures