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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0r)E3N3Z#G$b'p"a4mbusiness forum,trade forum,business opportunity,Business China,Business India,Brazil businessIn my personal view of point,it comes from many ingredient, I'd like to outline part of them.forum.fobshanghai.com1K*S(j0z#a+F$e)t.m2r
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.){6S0S%t#k8{&b4b(]
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.
#Z5k5]7[)f,W4f+X[A Professional Business Forum]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.
#h"j(i&N-h ?6G&]business forum,trade forum,business opportunity,Business China,Business India,Brazil businessThe 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.
)}/f$T;D(U#A(s;H:}'u4. Unfortunately,the domestic manufacturers never stop this price fight,coz they believe they have the only straw left which will help them survive,the refund tax,that's why i say the govenment did not do a good job in the past years.But,why I also say it is too late to reduce and
'p7a&q.?:A4{business forum,trade forum,business opportunity,Business China,Business India,Brazil businessreject the refund these years,there are three reasons for that.business forum,trade forum,business opportunity,Business China,Business India,Brazil business5P6P.F'L M7F$U0b7~
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.
$G4l/W4z!C n[A Professional Business Forum]b.There are more and more developing countries who can offer cheaper labors now,such as Vietnam,Latin America and African country,the Chinese are losing its king state for cheap price product,you can see more and more fund pouring into these contries,even the Chinese enterprices.
:K8h9B4q&{#TFOB Business Forumc.The intenational market has been a mess with the cheap price product offering by Chinese manufacturers,they even do not know what's the real price.I take our sandwich maker for an example, with the production cost rising in the past years as well as the exchange rate reducing of USD,the production cost for the basic sandwich maker has to be at least 4.8-5.0USD/UNIT,while many buyer are enjoying the one in 4.5USD or below,if price rising,they quit and delect the order... The Chinese manufacturers are tasting the bitter fruits for their crazy action in the past years.forum.fobshanghai.com/f:G4U9f9D1a$j:\
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.forum.fobshanghai.com.p3v3N'd5V3h)K3D
/L-n!e-X$ZWhere is the road,how can we survive, who knows...business forum,trade forum,business opportunity,Business China,Business India,Brazil business!q6a/i$^)K)e:r,c*x(p1{
*~+V+y!],?#A:w[A Professional Business Forum]Thanks for attention,next time i may share some ideas to solve the problems.
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