Despite the unexpected optimism of may's imports and exports, China's foreign trade companies are still worried about high costs.


Rising Labour costs, real exchange rates and rising commodity prices are putting pressure on corporate margins.
At the same time, the shift in foreign trade growth has been driven by a passive adjustment.
According to the experts, it is necessary to adjust and adjust the foreign trade "to the low price" and the structural upgrade in the gradual process.

"The rise in labor costs is inevitable for China's economic development."
Wang Jinbin said, a professor in the school of renmin university of China economy, the social security of China's economic system reform lags behind, and the Chinese economy in the income distribution system has obviously deficiencies, elements in proportion to the primary distribution of income in the past decade are falling.
Moreover, there is a long-term shortfall in the labor force of the disadvantaged workers.
As a result, the rapid rise in Labour wages can be seen as a market self-correction that has clearly underdone these three factors.


"Salary is a good thing for China's economy, can achieve the ultimate goal of everyone share the achievements of economic growth; but on the other hand, in the current economic situation, there is no doubt that increase the cost of the foreign trade enterprises, short-term shocks for exports and growth."
Wang Jinbin said.


In addition to Labour costs, the cost of inputs such as land and water is also increasing.
"Enter the international market crude oil, iron ore and other commodities prices recover channel, in the year to march, commodity import price level in our country has been presented for 4 months in a row double-digit rise, and gains increased month by month."
Bai shuqiang, a professor at the university of international business and economics, said.


China also faces upward pressure on the yuan.
China international currency, foreign economic and trade university professor, director of the center for economic research Sun Hua fung said, according to the bank for international settlements released on June 15, the real effective exchange rate, from January 2010 to may, the euro zone's overall 7.84% devaluation, the dollar by 2.62%, a 5.49% rise in the yuan.
This means that, although the yuan bilateral nominal exchange rate against the dollar remains the same, relative to the euro zone's real effective renminbi appreciation of close to 13.33%, a practical effective appreciation of close to 2.87% against the dollar.
Actual revaluation of the yuan against the euro, will slow the restorative growth of Chinese exports to the European market, promote imports increased, at the same time also aggravate Chinese products in the euro zone and the euro zone's products on the market competition.


Experts say the high costs will weigh on the profit margins of foreign trade companies.
This is because of China's export commodity price is decided by the international market, manufacturers will increase the cost of out very hard, or will say goodbye to "cheap age" of China's foreign trade.
In this process, weak enterprise could be eliminated, the foreign trade structure facing passive adjustment of thrust, has long been China's manufacturing industry relies on low wages, high consumption, high emission growth pattern will be unsustainable.


Mei xinyu, a researcher at the ministry of commerce research institute, said as China's economic development, the cost of Labour, land and other factors are bound to rise, this is the inevitable trend, is not to stop.
It is difficult for companies to continue the strategies of the cheap Labour era.
Therefore, governments, businesses and societies should now form consensus that the model of low-cost labor must be reformed.


Mr Wang also says that the manufacturing surplus has accounted for more than 90 per cent of the trade surplus since the mid-1990s.
In foreign trade, China's economy has chosen a path of employment and not profit.
Today, it is true that there are drawbacks such as worsening trade conditions and excessive consumption of resources, which need to be corrected.


"But it should be a gradual process that cannot be overdone."
Wang Jinbin warns: "the structure of China's foreign trade upgrade is an opportunity, but the cause is passive, should change passive to active adjustments, 'to deflationary force can't come too fast, or policies will have too much impact: policy cannot bear the cost, or significant negative impact on employment."


Bai Shujiang also, at present, our country "enterprises with foreign investment and processing trade" of trade structure and trade surplus will still be formed in a certain period of time, but along with our country in the field of foreign trade on "extension market, adjust structure, promoting the balance", the scale of trade surplus will continue to decrease, foreign trade development tend to be the basic balance.
China's export enterprises should do to cope with early, seize the trade growth mode transformation this basic direction, as soon as possible, the foreign trade structure of innovation can enhance the enterprise and competitiveness.


Sun said rising costs and a stronger yuan would reduce export earnings.
To realize the product, the market will be unprofitable for a long time, the enterprise can develop new products, new markets, the process will have some businesses fell, but the survivors must be realized the upgrading of enterprises.