How hardware companies respond to the advent of the 6.3 era

On August 11th, the exchange rate of *** against the US dollar was reported to be 6.3991, which broke through the 6.4 mark for the first time, setting a new high since the exchange rate reform.

"The recent acceleration in the pace of renminbi appreciation is mainly driven by market forces," said Ding Zhijie, dean of the School of Finance of the University of International Business and Economics. According to data released recently, China’s trade surplus reached US$31.484 billion in July, the highest since February 2009, and exports reached US$175.13 billion in July. The monthly export scale has set a new record of US$161.97 billion that was just set last month. "The unexpected increase in the trade surplus and the strong rise in exports have shown that the ** exchange rate is strong and the supply exceeds demand in the ** market, which has contributed to the strong exchange rate."

As we all know, people's non-appreciation can reduce the cost burden on imported energy and raw materials, and help promote the export of mechanical and electrical enterprises to improve the technical level, improve the quality of mechanical and electrical products, thereby promoting China's mechanical and electrical industry restructuring and improving China's status in the international division of labor. However, there will undoubtedly be an impact on China’s export and electromechanical enterprises, especially labor-intensive electromechanical enterprises. Once the value of *** increases, in order to maintain the same *** price bottom line, the price of electromechanical export products in foreign currencies will increase, which will weaken Its price competitiveness; and to make foreign currency prices of export products unchanged, will inevitably squeeze export companies' profit margins, which can not but affect export companies, especially labor-intensive enterprises.

Ding Zhijie, Dean of the School of Finance at the University of Economics and Business, said that the appreciation of *** will allow some inefficient companies to either exit the export market or increase production efficiency and improve the quality of export products, thus further enhancing market competitiveness.

Obviously, for the majority of electromechanical enterprises, the appreciation of *** is also “several happy families”. The *** exchange rate has broken the 6.4 mark, and it is likely that the electromechanical industry will face a new round of reshuffle.

The author suggests that the majority of electromechanical enterprises that still rely mainly on the advantages of the labor force, persist in scientific and technological innovation, and increase the value of their subsidiary products will be the long-term way out before they can persist in this ups and downs.