European Debt Crisis Causes Continued Decline in Construction Machinery Exports in China

This year, many people in the industry believe that the passive appreciation of the renminbi against the euro will affect the export of China's construction machinery industry. In the long run, export companies will be negatively affected by the exchange rate appreciation.

However, in the short term, the current appreciation of the RMB against the euro is the largest and the appreciation of the US dollar is relatively small. The major exporting countries of construction machinery enterprises in China are developing countries, such as Africa, the Middle East, and other countries that settle in dollars.

On the other hand, the main reason affecting exports comes from the demand for international markets. At the same time, the appreciation of the renminbi is only a factor affecting exports. Therefore, industry analysts believe that the pressure of appreciation of the renminbi will not cause too much impact on the export of China's construction machinery industry in the short term.

China's export market, which was hit hard by the financial crisis, has recovered during this year's global economic recovery. However, the unanticipated European debt crisis followed, making the entire export environment more complex.

Investment expert Soros said on August 10 that the world has just entered the “second act of the financial crisis”. He said that in the context of the worsening sovereign debt crisis in Europe, governments have been forced to cut their budget deficits, which may drag the global economy back into recession.

According to statistics from Hengyi Machinery, the major export products of China's construction machinery have experienced a slight increase in sales during the peak seasons such as March and April. Export sales in other months have been in a sluggish state, and small construction machinery products mainly exported to Europe and America are In the financial crisis, there was a slump, especially crushers, sand makers, and crushers.

The negative impact of the European debt crisis will affect the export of construction machinery in China in the next few months, causing the export market to relapse into difficulties. Construction machinery companies should be vigilant and respond positively as soon as possible. The appreciation of the renminbi this year will have little effect on China's construction machinery exports. The cancellation of export tax rebates for certain commodities that will be introduced will indirectly benefit China’s construction machinery exports.

The spread of the European debt crisis has caused the newly warmed export market to be in trouble once again. From the perspective of China's export sales of crushers and sand mills in May, it showed obvious signs of falling for two consecutive months. Judging from the overall environment of the international market, in the coming months, the European debt crisis will continue to lower the export of construction machinery in China.