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By Zhao Jinping and Zhao Fujun, foreign trade analysis research team, Research Department of Foreign Economic Relations, Development Research Center of the State Council (DRC)

Research report No 106, 2014 (Total No 4605)

Summary:

To better understand the trends in China's export business and the problems that foreign trade enterprises face, and to provide a basis for policy adjustments, the DRC's foreign trade researchers have handed out a questionnaire twice a year for the past several years. This survey, in May 2014, collected questionnaires from 546 foreign trade companies across 20 provinces and cities, with the results showing that, from January to May, China's exports and orders were better than last year, with prices rising slightly but with falling profit margins.

This year's exports are estimated to be around the same as last year's, with slow growth for the whole year. Increasing labor costs, the appreciation of the yuan, and trade conflicts are the main constraints in export growth. Enterprises suggest the government find ways to stabilize prices and the yuan exchange rate, accelerate export rebates, and provide more financial guarantees for enterprises.