On the 11th, the US Senate passed the "2011 Currency Exchange Rate Supervision and Reform Act" with a vote of 63 votes in favor and 35 votes against the strong opposition at home and abroad. The purpose of the bill is to force the renminbi to appreciate against the dollar to help the United States ease trade imbalances with China. However, it is still unclear whether the bill can pass, because the bill needs to be approved by the Senate and passed by the US President Barack Obama before it can become law. Many House leaders have criticized the bill.
The appreciation of the renminbi will have an impact on people's lives to a certain extent.
On the positive side, the first is to facilitate the import of goods, the prices of imported goods used by people will decline; the second is to stabilize domestic prices and increase income, provide more employment opportunities; once again, it is conducive to tourism and study abroad. On the whole, it is conducive to continuing to promote the exchange rate system and even the reform of the financial system. It is also conducive to reducing the demand for foreign capital for domestic purchases and reducing the real estate bubble.
However, the appreciation of the renminbi also has many drawbacks: First, it is not conducive to foreign tourists entering the country. Inbound tourism for foreign tourists has become relatively expensive, which has a detrimental effect on domestic tourism; secondly, it is not conducive to commodity exports.
The biggest impact of the appreciation of the renminbi is China’s export trade. The trade friction between China and the United States is based on China’s huge trade surplus with the United States. As soon as the renminbi appreciates, China’s monetary advantage will disappear.
For the abrasives industry, the appreciation of the renminbi will also have a certain impact on it.
In terms of exports, according to statistics, in the first half of 2011, brown corundum exported 332,000 tons, amounting to 214.1 million US dollars, compared with 323,500 tons in 2010, amounting to 171.3 million US dollars, an increase of 2.65% and 25% respectively. The FOB is US$644.75 per ton, up by 21.78% per ton of US$529.43 per ton in 2010; the export of silicon carbide is 110,300 tons, with an amount of US$275.7 million. In the same period of 2010, it was 106,200 tons, with an amount of 186.8 million US dollars. The year-on-year growth was 3.86% and 47.63%, and the FOB was US$2499.26 per ton. In the same period of 2010, it was 1,758.27 US dollars per ton, up 42.14% year-on-year; the export of abrasive tools was 97,300 tons, with an amount of 142.5 million US dollars. In the same period of 2010, it was 76,500 tons and the amount was 103.1 million US dollars. The year-on-year growth was 27.31% and 38.35% respectively. In 2011, the FOB was US$1464.83 per ton. In the same period of 2010, the FOB was US$1347.94 per ton, up 8.67% year-on-year.
It can be seen from the above data that in the first half of the year, the export trade of abrasives and abrasives has risen steadily, and the industry's production and sales are on the rise. In the second half of the year, if the renminbi continues to appreciate, the abrasives exporting enterprises or the domestic abrasives industry will inevitably face great challenges. The appreciation of the renminbi will reduce the profit margin of export enterprises in a certain period of time, so that the competitiveness of enterprises and their share in the international market will decline. Some manufacturers of export products may switch to the domestic market and join the ranks of domestic market competition, so that they have already competed. The fierce competition in the domestic market is even more fierce.
Not only that, the further development of the US debt crisis and the European sovereign debt crisis will affect the pace of world economic recovery, which will also have an impact on exports. Coupled with the power shortage, money shortage, labor shortage, the domestic market private lending crisis, the monetary tightening... In the second half of the year, the development of the abrasives industry is very serious, and enterprises should take precautions.
Modern unique streamlined design, decoration with imitation leather fabric, colorful Sofa shape, suitable for different decorative styles of interior space, solid wood frame structure, medium density fiber board armrest, lined sponge, cushion, not easy to deformation, equipped with independent spring and high elastic oak tendon; steel part of cold rolled steel, surface electric chrome plating or stainless steel. Sofa is an integrated structure, hardware connection, exquisite manual craftsmanship, beautiful lines, comfortable sitting, in line with ergonomic principles, to provide consumers with a warm, comfortable, romantic atmosphere
Office Sofa Set,Office Futon,Office Sofa Chair,Modern Office Sofa
FOSHAN CITY LESHUN RONGHUI FURNITURE CO.LTD , https://www.ronghuifurniture.com