Financial crisis

The financial crisis has had repercussions around the world.

Negative impact of the financial crisis on China

The impact of the financial crisis on China, as early as 2005 and 2006, the appreciation of the yuan, raw materials rose, the Pearl River Delta, the Yangtze River Delta small and medium-sized enterprises, a lot of which are not technological strength, like clothing, shoes and hats, hardware, toys, these are afraid of tens of thousands of enterprises have withdrawn, like Dongguan, have been transferred to the Guangxi Province there! That is a new economic zone. So to think of small and medium-sized enterprises have a big development, at present the difficulty is relatively large, because three feet of ice is not a day's cold, small and medium-sized enterprises, the reason for these conditions, because of the rise in raw materials lead to rising costs, the appreciation of the yuan led to the export of the price advantage of becoming smaller, at the same time, the country has adopted a tightening of the credit policy led to the. Many SMEs do not have much capital of their own and have to rely on credit. In the past, many places in the Pearl River Delta, enterprises can tide over his difficulties after defaulting on wages, and now with the central government in 2007 introduced a number of policies to protect people's livelihood and the implementation of the new labor contract law, the phenomenon of defaulting on wage penalties are very serious, and on the employees to sign a contract as well as termination of employment, there are a series of protective measures, these measures have a good side, but there is also a negative side of the enterprise. There are many reasons why small and medium-sized enterprises are struggling to survive and make money.

Like many small and medium-sized enterprises in Shanghai, a lot of South Korea, Japan, a look at the earning before immediately quit, which want to change, I'm afraid that there is a certain degree of difficulty, the main measures may be currently in business, through the relaxation of the silver root, tax cuts, and other measures, so that this part of the enterprises to hold on to, so that they are the first to survive, and if this is done, do not deteriorate, then the form of after a year or half a year later, the situation will improve.

China's opportunities in the financial crisis

From my understanding of the various aspects of the U.S. economic problems this time on our domestic economic situation has a great impact, on the one hand, in the field of exports, we know that our country's trade surplus of close to more than half, mainly from the United States, if the export market to the U.S. appeared to be a big shrinkage, it is logical that will be on the wheels of the country's export-driven economy to have an impact. On the other hand, in some financial areas, involving some of the purchase of U.S. financial institutions as well as corporate bonds have a relatively large impact, and in recent days we can know that the disclosure of the CIC in the U.S. losses are very large, these are our domestic losses.

But from another point of view, I have recently been doing some research on this issue, I feel that we should be on the development of China's economy, whether it is the overall macroeconomic aspects or the development of small and medium-sized enterprises, I think it may be a big opportunity. Why do you say so? There may be several backgrounds that we can discuss together. The first background, including the United States to force the rapid appreciation of the renminbi as well as measures to restrict our exports, although very realistic, but I think as long as the outside environment allows us to normal rules of behavior to develop, I think China is quite abundant. In the short term, the export of primary processed products may be affected, but at this time we can instead force our export structure to upgrade. As long as there is such a trend in this peripheral market situation, I believe that domestic small and medium-sized enterprises, including large enterprises can certainly do a good job of upgrading their products. Of course, it may take time to buffer, which leads to the second piece of the problem. From the central as well as all aspects, the macro decision-making level will be very good grasp of this time, while striving to give China's small and medium-sized enterprises and including large exporters, will provide a buffer time.

We can find that we look carefully, in mid-July this year, the appreciation of the yuan against the dollar began to stop, and there was a moderate depreciation, which is the foresight of the strategic decision-making, which can have two roles, the first role in preventing a substantial appreciation of the dollar on August 8 to China's exchange rate reform to bring the impact. We can look through history to find that many exchange rate reform countries, including Japan, including South Korea, Germany, from the history can be found, often in the first stage of exchange rate reform, when the country against the dollar from appreciation to depreciation, most of the fatal shock, Japan, South Korea, Germany have experienced. Our country, from all aspects of horizontal comparison, should be the first case, is to make the dollar reverse appreciation for the yuan reverse depreciation of the staggered risk, I think it produces a great buffer release role. Nearly 8 months of the dollar appreciated significantly, including international oil, agricultural prices and other substantial plunge in the case of China's exchange rate, but relatively stable, this point in China's exchange rate reform is a milestone on the road; the second role, we also know that this period of slowing down of the appreciation of the yuan, China's small and medium-sized enterprises, especially export-oriented enterprises, it can be said that a great buffer to give a chance to take a breather. I am here is also a reference to a proposal for small and medium-sized enterprises, that is, by the end of the year, the RMB will be controlled to within the current appreciation, as long as there is no major financial turmoil in the country, there may still be a slight depreciation of the process of the RMB, small and medium-sized enterprises can make full use of this time, the arrangement of the fourth quarter of the export of the production of the big exchange rate policy should have a good value of reference for the small and medium-sized enterprises.