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Business / Economy

Can trade rebound sustain?

(Xinhua) Updated: 2012-10-16 09:45

Huo, however, pointed out that the fundamental causes that hinder China's foreign trade growth, such as withering overseas demand and increasing trade protectionism, would not change overnight.

"Thus, China needs to rely on transforming its pattern of economic development and the upgrading of foreign trade to get it out of this predicament," according to Huo.

"Under such circumstances, export-oriented Chinese enterprises will have to adjust structures and change their development modes to boost their productivity and competitiveness," Liu, the spokesman, added.

Enterprises seem to have a more bleak outlook toward the future trade situation.

Eric Liu, sales manager for Zhejiang-based lawn mower maker Changjiang Machinery Co Ltd, said the current difficulties may last five more years.

Liu said rising labor costs, a volatile currency and higher commodity prices added to Changjiang Machinery's export woes.

"Years ago, the US dollar fell against the yuan, forcing us to shift to the Euro. Then the Euro fell again, further squeezing our profit margin," Liu said. "And as a lawn mower producer that consumes a huge quantity of iron and steel, a rise in the prices of raw materials has also eaten into our margin."

Ying said the current trade difficulties have forced many smaller enterprises with low competitiveness to close.

Meanwhile, export-oriented enterprises are seeking ways to diversify their business patterns.

Ying said he would consider tapping the domestic market or setting up overseas businesses if the current sluggish trade situation continues.

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