As has been analyzed before, the appreciation of RMB has brought great challenges to many small and medium-sized import and export enterprises that win by price. After the appreciation of RMB, there is little profit left. Therefore, to fundamentally solve the problem, we must strive to optimize the structure of export commodities and enhance competitiveness. We should take strengthening R&D, improving product quality and increasing added value as the fundamental way to cope with exchange rate changes, change the commonly used low-price competition strategy in the past, actively introduce foreign high and new technologies, improve the scientific and technological content and added value of products, continuously develop new products, reduce the export proportion of low-grade goods, and correspondingly increase the export proportion of high-grade goods.
Second, make rational use of financial instruments and gradually adapt to the floating exchange rate system.
We should pay close attention to the development and changes of the new RMB exchange rate mechanism, and pay attention to and scientifically predict the trend of RMB appreciation. Enterprises should use reasonable settlement currency and financial instruments to avoid financial risks. At present, domestic enterprises can mainly use RMB forward foreign exchange transactions, forex futures trading, forward foreign exchange transactions, foreign exchange options, swaps, export bills, forfaiting and structured deposits. Enterprises should fully understand the functions of these businesses, choose various products according to their own risk tolerance and expected rate of return, pay attention to choosing the right trading opportunity, and realize the preservation and appreciation through foreign exchange investment.
Third, take the road of differentiation and branding.
After the appreciation of RMB, there is no way out for low-price competition. A very important means to improve the economic benefits of export is to create enterprises' own brands or even famous brands and export them with their own brands. As we all know, today's international market has entered the era of brand competition, and China enterprises still take price and quality as the means of competition. China is a big producer of products, but a small brand country. It can be seen that China's foreign trade enterprises are mainly OEM, lacking independent brands. The main reason is that many domestic enterprises lack long-term brand planning and have a weak sense of trademark. Therefore, in today's world economic globalization, China enterprises should establish the concept of brand competition, improve the grade of export products as soon as possible, enhance the brand connotation and design ability of products, create brand advantages of export products, and take the road of high-end brand names. This is the only way to realize the sustainable development of China's foreign trade by changing the growth mode of foreign trade from quantity to benefit, from a big trading country to a powerful brand country.
Fourth, accelerate overseas transfer, vigorously explore the international market, and implement a diversified export strategy.
After the appreciation of RMB, the international purchasing power and foreign investment ability of China enterprises have been enhanced, which has created conditions for some powerful enterprises to implement the strategy of going abroad and invest overseas. By investing overseas, we can transfer China's surplus production capacity, make full use of cheap foreign energy and raw materials, bypass various trade barriers faced by China's production, and then export them to overseas markets. Therefore, enterprises should gradually integrate resources, make rational use of financial leverage, moderately increase the pace of overseas expansion through mergers and acquisitions, and establish a global production and trade system. This can improve the resistance to exchange rate changes, reduce the impact of individual market fluctuations, and make enterprises invincible in the fierce international market competition.
Five, strengthen the cost management.
After the appreciation of RMB, foreign trade enterprises should effectively strengthen the cost management of procurement, production, warehousing and circulation, adopt the price reversal mechanism, fully tap the internal potential, and thus reduce costs. At the same time, the appreciation of RMB reduces the import price of raw materials, semi-finished products and technical equipment, which brings space for enterprises to expand imports, especially the domestic shortage of resources and raw materials and the transformation of existing equipment. Enterprises should increase international procurement to partially offset the pressure of rising export costs.