The renminbi exchange rate against the US dollar has risen all the way recently, and it has broken through the 6.56 level at one stroke, and has hit a new high since the exchange reform. The reporter learned from Dongguan, which is known as the “world factory,” that since the beginning of this year, due to the sharp rise in raw material prices and labor costs, the impact of RMB appreciation on Chinese factories is expanding. Many export enterprises in Dongguan are forced to raise prices, but due to bargaining power Limited, a large number of SMEs can only be struggling to support it.

Cheng Liangbo, general manager of Dongguan Jucheng Shoe Factory, wrote an account to the reporter. In the past year, the wages of workers in the factory have increased by 20% to 30%, but raw material prices for natural rubber rose by more than 200%. Orders are faced with a dilemma of losing money. At present, the product price increases by 15% barely maintain the factory operations. He said that the payment should generally be settled within six months or one year. The exchange rate at the time of settlement is based on the exchange rate at the time of signing the contract. However, as the exchange rate of the renminbi against the US dollar keeps rising, the already thin profits of the factory have dropped sharply, even at a loss.

Cheng Liangbo said that according to the current situation, if the price of export products does not increase, the factory can only wait to close the door, but the bargaining space is actually limited. Even if the price increases by 20%, it will not make up for the pressure of rising costs. The profit rate of the factory will remain. Very low.

According to Li Dazhao, director of the Great Britain Securities Research Institute, the trend of RMB appreciation has not changed from the recent situation. From this point of view, China’s export-oriented enterprises will face the dual pressure of labor shortage and appreciation of the renminbi for a long time.

Li Dazhao stated that China's manufacturing industry is facing tremendous pressure for transformation. Low-end manufacturing industries without technical content can only be passive in bargaining. Chinese companies need to create their own brands, increase product added value, and expand their bargaining power in the process. Enterprises that can adapt to environmental changes will stand out and those that cannot adapt will be eliminated.