The Ministry of Commerce recommends that Chinese exports increase prices appropriately

Say goodbye to vicious competition and actively raise prices. Assistant Minister of Commerce Lu Jianhua said that as the global market demand gradually picks up, the rise in raw material prices will be an inevitable trend. In the face of market changes caused by the financial crisis, the cost pressure of Chinese foreign trade enterprises will increase, and export products need to raise prices appropriately.
Lu Jianhua’s speech, regardless of its intention, actually contains two meanings: First, when the Chinese economy is increasingly entering a high-cost development stage, no matter what type of enterprise, including foreign trade enterprises, they face product costs. Increasingly, the price increase of products is inevitable. Second, in the past, many foreign trade enterprises have adopted the "self-inflicted" vicious competition under great pressure. When the cost pressure continues to increase, this kind of competition must be withdrawn. stage.
Looking back over the past few years, we can see that China's economic development once had a low-cost development stage, including resource costs, environmental costs, and labor costs, and prices have been very low. In a sense, this low-cost situation provides a competitive advantage for Chinese companies to grow. However, low cost is undoubtedly a "double-edged sword". On the one hand, it has brought price competitiveness to many enterprises, but on the other hand, it is also overdrafting the future and sacrificing the environment.
Nowadays, people have reached a consensus that the low-cost, extensive growth model has gradually come to an end. China's future must choose a more sustainable development mode. The shift in the way of development is naturally or unnaturally accompanied by rising development costs. From the background of the increase in economic costs, both the current situation of the ecological environment and the constraints of resource endowment are pushing the increase of environmental costs and resource costs. In other words, increasing the cost of use helps to increase the protection of the environment and makes resource prices more clearly reflect changes in value. At the same time, from a dynamic perspective, the cost of China's labor force will continue to increase in the future.
At present, the most difficult stage caused by the global financial crisis seems to be far away. Although economists are still arguing whether there will be a “double dip”, an undeniable fact is that the world economy is picking up, especially The Chinese economy has taken the lead in establishing the main tone of the recovery. The recovery of the global economy will improve the external demand environment of Chinese export enterprises, and at the same time, it will produce another result, that is, the price of raw materials will rise, and the downturn will be swept away.
This means that from a cost perspective, whether it is a large long-term background or a current reality, it shows that the cost pressure of exporting enterprises will continue to increase. The pressure of cost, while forcing export companies to raise product prices, also warns that in the past, the way in which enterprises competed in overseas markets by engaging in vicious price competition must be completely abandoned.
Undoubtedly, the price of Chinese foreign trade enterprises' export products is too low, which is not only a vicious price competition, but also likely to cause new trade frictions. In recent years, overseas anti-dumping cases against Chinese products have been more intensive, both because of the fact that in the context of the financial crisis, some protectionist forces overseas have become more active, and inappropriately targeted Chinese products, and because some Chinese domestic companies are “drinking thirst”. Practice, give people a mouthful. From this perspective, foreign trade enterprises can increase the price of export products, which is conducive to blocking the mouth of overseas trade protection forces, and can also increase profits.
Of course, in the short term, the price increase of export products may affect competitiveness to a certain extent. When the low-cost advantage of “Made in China” is no longer the case, how to maintain the charm of the global market is indeed a realistic and difficult task. Obviously, in the stage of high cost, in order to resolve the pressures and difficulties brought about by the cost, Chinese enterprises must increase the added value of export products through institutional innovation and technological innovation. Frankly speaking, this is destined to be a difficult road to transformation, but it is also a path that cannot be avoided and cannot be bypassed.
When it comes to raising the price of Chinese exports, there is still a policy that cannot lead to more thinking, that is, the export tax rebate policy. As everyone knows, China's foreign trade policy once turned "neutral" in 2007, which is necessary to change macroeconomic imbalances and domestic economic restructuring. However, after the global financial crisis, the neutral trade policy failed to continue. In the context of stabilizing external demand, the government has repeatedly raised the export tax rebate rate several times, and its policy objectives are very obvious.
In the period when the financial crisis is seriously impacting China's real economy, and adjusting the export tax rebate rate during the period of sharp deterioration of the external demand environment, it is indeed a warmth in the economic winter for some enterprises in difficult situations. Helping to achieve the goal of maintaining economic growth has certain positive significance. However, some companies rely too much on the government in the name of the crisis, with the intention of “exporting full tax rebates”, or after the economy has recovered, they still hope that the idea of ​​policy is not appropriate and will not help long-term competitiveness. Upgrade.
In other words, the export tax rebate rate of many industries that were once raised in the crisis should have the determination to reduce the camera in the future. Otherwise, subsidies or tax rebates in some fields and industries will supplement the prices of export products, so that they will not be reasonably upgraded, which is not conducive to increasing the incentives for enterprises to increase the added value of products. The upward adjustment of export tax rebate rate is incompatible with industrial structure upgrade. The problem is also difficult to solve, and subsidies are often posted to overseas consumers.
In general, the price of Chinese export products has reason to get more attention. Lu Jianhua’s statement made public opinion pay attention to this issue once again. This is a good thing. Appropriately increasing the export price of some products will also be a necessary choice in the future.

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