The impact of RMB appreciation on my country’s foreign trade enterprises is mainly reflected in the following aspects.

1. Impact on the profits of foreign trade enterprises

Foreign trade enterprises mean that they are sold to foreigners. If the local currency denominated cost remains unchanged, if the agreement is to settle in foreign currency, This means that the sales cost denominated in foreign currency increases, or the sales revenue denominated in local currency decreases, which means that the company's profit margin will be reduced, and the impact will be serious and even a loss.

From the perspective of the structure of my country's foreign trade enterprises, processing and labor-intensive enterprises have relatively weak pricing power and relatively limited profit margins, and will be greatly affected; for enterprises with high technical content and substitutable For companies with weak competitiveness, they have a higher say in pricing and can pass on costs to customers, with relatively limited impact on profits. It can be seen that appreciation has a great impact on the profits of low value-added processing and labor-intensive foreign trade enterprises. In severe cases, some enterprises may not survive.

The impact of appreciation on profits

2. The impact on the international competitiveness of foreign trade companies

As the RMB appreciates, the price of foreign currency-denominated orders remains unchanged, which means that costs increase. , profits are reduced. If the price of foreign currency-denominated orders increases, it means higher costs for foreign customers. In the case of alternative supplies, it means that international price competitiveness weakens. To improve the international competitiveness of enterprises, foreign trade enterprises need to improve their competitiveness in product performance, otherwise they will lose their cost competitive advantage by raising prices.

The impact of appreciation on international competitiveness

3. The impact of appreciation on corporate foreign exchange settlement

Exchange rate appreciation is uncertain. Under the expectation of appreciation, It is necessary to shorten the exchange rate settlement cycle. If it is slow, it means losses in exchange settlement. The order may be a loss, or it may be settled in RMB with customers. It is necessary to avoid long-term depreciating currency settlement, otherwise the risk of exchange settlement losses will increase.

The impact of appreciation on corporate foreign exchange settlement

In order to reduce the impact of RMB exchange rate appreciation on foreign trade companies, companies need to improve product performance advantages instead of relying on cost advantages to win customers. At the same time, exchange rate management will be strengthened to avoid the risk of exchange losses. On the state side, it is necessary to provide corresponding preferential support policies to enterprises that are greatly affected and have a large number of employees during the appreciation period to help them tide over the difficulties.