Exchange rate fluctuations erode profits of foreign export companies

On November 4th, the 108th Canton Fair concluded, marking another significant event in China's trade calendar. This year, nearly 200,000 overseas buyers attended the fair, showing a slight increase in transaction volume compared to previous years. Dalian exhibitors secured approximately $470 million in orders, which was slightly higher than last year but still fell short of pre-crisis levels. Facing ongoing challenges such as exchange rate fluctuations, rising raw material costs, and increasing labor expenses, Chinese export companies are accelerating their transformation and seeking new competitive advantages in the global market. As a key indicator of China’s foreign trade performance, the Canton Fair continues to reflect broader economic trends. According to official data, 199,266 international buyers from 208 countries and regions participated in the 108th session, maintaining a level similar to the previous year. While the number of attendees remained stable, the total transaction volume saw a modest improvement over the last edition of the fair. Beyond external demand uncertainties, Chinese exporters are also grappling with rising operational costs. Xie Wanxiang, general manager of a ginger tea exporting company, noted that the price of ginger has surged several times compared to last year, while labor costs have also climbed. Many companies have raised wages twice this year, leading to increased production costs. Additionally, the continuous appreciation of the yuan has squeezed profit margins for many foreign trade firms. Amid these pressures, exhibitors reported heightened bargaining power from buyers, who are more cautious about placing large orders. Most are opting for shorter-term contracts and smaller production runs. According to the General Assembly statistics, the number of short-term orders (within three months) has risen by over 50%. In the first phase of the fair, 51.8% of orders were for less than three months, while only 12.3% were for long-term contracts exceeding six months. This shift highlights the evolving dynamics in international trade and the growing need for flexibility among Chinese exporters.

Woman's Watches

Women don't seem to have much interest in overly complicated craftsmanship. It is better to come directly to a watch that can match fashion, which seems to be more valuable. Most of our watches are stainless steel Woman's watches, here we have elegant and fashionable Quartz Watches, luxury skeleton Mechanical Watches, classic dress Casual Watches. We support OEM&ODM watches service, whether you are personal or corporate, we are very welcome Inquiry.

woman's watches

Woman's Watches,Mechanical Ladies Watch,Wrist Watch For Ladies, Automatic watch

SHENZHEN ORINO WATCH CO.,LTD , https://www.orinowatch.com