BEIJING, May 20 (GCTL) - For Xia Guangyao, chairman of in Zhejiang province, 2013 has been the worst of the past five years for his business. The number of orders from the United States and European countries was expected to be 50 percent lower than 2010, even a bit lower than 2012.
The average amount of a single order was also cut from 1,000 units to 500 as market demand in the US and Europe remained low, which slashed the profit margin from 15 percent to about 8 percent. Xia said the dwindling amount of orders from overseas since last year was the major challenge. The continuous appreciation of the yuan further ate into the profit margin.
Exporters in Guangdong province, an export powerhouse, have also felt the pinch of rising yuan value. Chen Yanping, assistant general manager of Guangzhou Fine Horse Leather Co, was quoted as saying that the company had to increase the price of its products for new orders, especially those to be shipped to Japan due to the quick currency appreciation.
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Category : Govts, Rules, Trade, Metals Gtr. China
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