2008-7-25 08:56
alexnee
misunderstanding and unhealthy way for China's international trading
In our forum,many guys are complaining why it is so difficult to catch the first order,when will come my first order, I worked very hard in the past N months,but fail to get any positive result,what's the matters?
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Obviously,the international trade in China is not easy now,but,personally, I do not think it is the whole story,the main problem is what makes it so hard.
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In my personal view of point,it comes from many ingredient, I'd like to outline part of them.
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1.International competition.The global has been to a country,a small country,which makes the comptition more and more furiously.With the developent of transmission technology,the information tranfer is faster and faster, as soon as one client sent out a inquriy,thousands of quotation will be followed,it is amazing for the buyer,but crazy for the seller.
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2.China government fail to adjust its export policy accordingly.In the beginning years,the system is quite right,the government gave the drawback tax to the manufactures to encourage them to enlarge production to earn more foreign currency,however,with enlargement of export,China should have rejected the refund tax in the right time,however, I do not see the government fail to do so,but try to do it in the recent years,which is too late, I will explain it in the follwing points.6{@3_l"\8c K
3.Yeah,obviously,with the encouragement of the government,the manufactures enlarge their business like a rocket,which makes more and more people who have some funds on hand want to share the fruits,so the factories born like the bamboo shoot in spring.More and more factories take part in the market, and cut down price year by year,month by month,day by day.?2Z3AV|,J
The competition is from the inerntional competition to domestic one,who is the lowest price,who won the order.The manufactures have to win the orders to let his company running on even if there is no profit left.We can see every canton fair is a fair for price cutting between Chinese manufactures.It's silly,while the foreign buyers are smiling in heart.
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4. Unfortunately,the domestic manufacturers never stop this price fight,coz they believe they have the only straw left which will help them survive,the refund tax,that's why i say the govenment did not do a good job in the past years.But,why I also say it is too late to reduce and
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reject the refund these years,there are three reasons for that.tKz&W,w
a.The competition has been to the last scene,many fields such as textile industry,small home appliances,shoes, have no profit left,they just have to let the machines running,with the hope that the government will help them to survive in the near future,obviously,the day is far away.'d)H.z9ld
b.There are more and more developing countries who can offer cheaper labors now,such as Vietnam,Latin America and African country,the Chinese are losing its king state for cheap price product,you can see more and more fund pouring into these contries,even the Chinese enterprices.#Bq*u!sUW6O6Ii
c.The intenational market has been a mess with the cheap price product offering by Chinese manufacturers,they even do not know what's the real price.I take our sandwich maker for an example, with the production cost rising in the past years as well as the exchange rate reducing of USD,the production cost for the basic sandwich maker has to be at least 4.8-5.0USD/UNIT,while many buyer are enjoying the one in 4.5USD or below,if price rising,they quit and delect the order... The Chinese manufacturers are tasting the bitter fruits for their crazy action in the past years.
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Alas, I do not see the road for international business in China,if you do not do something,more and more companies are bankrupt and falling down,more and more labors are out of work,even the lowest salary with hardest work,the future is fade away,I am afraid to say.
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Where is the road,how can we survive, who knows...?9AMG8L:h0UD^
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Thanks for attention,next time i may share some ideas to solve the problems.
2008-7-29 16:30
alexnee
The government has been guiding the enterprises to go a technical path to change the current awesome situation,that's correct,but it does not hit the point.'nlN
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Personally, the most important thing we should do immediately is to go up the salary to the normal labor as well as give better insurance to the civilians,which will definitely enlarge the demand in the demastic market, of course,the enterprises can enlarge their production accordingly,which will go in positive circle.In fact,the government has done something since Jan.1,2008,when it published a new labor law,however,he made the situation even worse.It is not wise to transfer the government responsibilty to the enterprices,in fact,many factories just try to survive,how can they take over such a heavy burden? Then,what and how can we the solve the problem? It is very easy,the great American has told us the best way, use more scientific tax policy. _N#~t2CxlX:DD
1.Peronal income tax. Get an obviously zone for the tax from start,and ask extreme high tax for those in high tax.It must be connected with the bank system in escape someone try to evade tax,give them the deadly punish if they do so.lR0tfP,`?
2.Use different tax policy to the enterprises,to encourage and help those who have advantages in teconology and potencial ones, keep those who are running well,to defeat those who waste heavy resourse and explose heavy pollution.
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I believe the scienfic tax will bring enough money to give higher salaries.2_-R[
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Of course,all those depend on we have a good government and the government can be inspected by its citizens. The bottom line is that the government do serve for the society,not a worm of our nation,but like a public service department,I think a reform is necessary and urgent in our nation,otherwise,all the effort is useless.Till the day,when we used up our labor resources,we may realized and tasted its bitterfruit then.
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Thanks for attention.