At present, China's industrial production is still in the downstream industry chain, downward pressure still exist, most of the manufacturing enterprises still follow the "small profits and good sales" mode of production and sales, products added value is not high.Shinestar Steel Research Institute believes that this led directly to the profit level of industrial enterprises also encounter bottlenecks, such products in China's labor costs and tax costs rise in the background, but also gradually lost the price advantage, the lack of sustainable development momentum.
The current executive meeting of the State Council once again stressed the need to promote the upgrading of the real economy, it is necessary to speed up the smooth movement of the old and new energy, collaborative efforts to promote the real economy covering the Agriculture, industry and service industry to flourish.In recent years, shinestar group has been actively respond to a nation's call for upgrading the real economy, produce a lot of high quality products, such as straight seam steel pipe, galvanized pipe, api 5l steel pipe, welded pipe, seamless steel tube, etc.
Someone said, "made in China always suffer from two disease."One is the control of the machine and control system can not pass, one is the power system of domestic equipment does not pass, innovation ability is weak.At the same time, in the case of rising factor costs, China's manufacturing productivity is low, can not be resolved by technological progress to increase the high cost.
2016, China's overall economic growth rate slowed down, the three major trends in the demand for investment slowed down, consumption is stable, the downward trend of exports, endogenous growth momentum is gradually formed, the industry is facing the bottleneck of the development of structural adjustment.Is expected in 2017 with the shrinking of effective demand, economic downward pressure still exists, resulting in the macro economy may produce the economic downturn and the inflation rate upward pressure on the coexistence of "stagflation" risk.
In addition, the high cost of industrial production and industrial products will continue to restrict the development of the industrial economy.According to the data analysis, in 2016 by the overseas and domestic resources, energy, iron and steel, nonferrous metals and other commodities prices, hand driven PPI stabilized, on the other hand the possibility of future production factor prices generally rise increase, forming pressure on the cost of industrial chain, resulting in weakening demand, which restricted the sustainable development in the field of industrial economy.
Since 2012, the labor cost advantage of China as the "world factory" is decreasing year by year.In particular, the level of labor wages, with the level of developed countries gradually.2016 local companies flight situation caused's emphasis on tax of the enterprise in question, at the same time around the camp to increase further, the phase of enterprise tax burden is not reduced the problem such as increasing will exist.The future industrial structure adjustment will affect the whole industry development situation, corporate profits will be in the low post, tax burden of corporate profits stripping will hit production enthusiasm.However, problems have to find solutions, shinestar group will continue to focus on the development of China industrial economy, combined with their own actual situation to accelerate the transformation and upgrading.Produce a better straight seam steel pipe, galvanized pipe, api 5l steel pipe, welded pipe, API line pipe manufacturer, injected new impetus to the development of Chinese economy and vitality.
2017 will be a year of challenges and opportunities coexist, the world economy will face a huge challenge. As a manufacturer and services vendors of carbon steel pipe, welded steel pipe, line pipe, ERW pipe, LSAW steel pipe, Shinestar Group has always been focused on the development of the global economy. Today, Shinestar steel research institute would like to talk the method of China how to deal with the challenge of the global economy.
Firstly, look for the balance of the fiscal and monetary policy combination, carefully deal with it. From the Angle of demand, if you take more loose fiscal policy, it is good for economic growth but not conducive to reduce debt. Loose monetary policy can support aggregate demand, encourage private spending, but also may bring negative effects, such as low long-term interest rates are likely to cover up the structural problems of the economy and financial system, and squeeze profits leads to the more risky loans.
Secondly, continue to promote the structural reform is important. Low-income countries can focus on improving infrastructure, legal system, promote the development of capital market, etc. Developed economies can focus on improving labor supply and create better innovation incentive mechanism, and improve productivity growth. In general, improve infrastructure, strengthen the banking system robustness and medium can help you in all countries.
Thirdly, should continue to open international trade development. International trade to optimize the allocation of resources, improve the specialization of production, reduce the production cost, eventually bring economies of scale and increase to comprehensive economic prosperity; Also can promote the spread of knowledge and technology, new product research and development and productivity growth. International trade back can only deepen and delay the downturn of economic growth, not conducive to economic prosperity.
Fourth, promote inclusive growth. Many countries need to continue to strengthen the social safety net, improve health care, education and other infrastructure and conditions, to achieve more professional and regional flow of personnel, taking tax incentives to encourage women into the labor market, etc.
Fifth, face and deal with the economic transformation of the digital revolution correctly. While strengthen the social security system, improve the level of education, further strengthen vocational training and technology promotion, promote production quickly and effectively to reallocate resources to the most productive industries and departments, etc., to support people to adapt to the new job requires as soon as possible, and develop new technology into productivity.
Sixth, the international community needs to coordinate global policy combination, to revive the economy, benefit sharing. International coordination can make the individual countries support demand measures to produce more positive, the positive spillover effect, so as to strengthen its global effect, create more policy space.
In a word, the multiple challenges need strong, coordination of policy measures. Demand management should be in parallel with a reform of the supply side, fiscal, monetary policy, structural reform needs to cooperate, adjust measures to local conditions. the policy measures of each country should be coordinated, have the effect of auxiliary to each other.
Oportunities and challenges which China's economic development facing is on the rise, Shinestar Group will also be a scientific analysis of the new features of the international situation, efforts to seize opportunities, meet challenges and strive to produce more high quality galvanized steel pipe, welded steel pipe, line pipe, ERW steel pipe, LSAW steel pipe and other products, as with the international competitiveness of steel enterprises.
World economy needs to strengthen global economic governance, but the British off the EU referendum and Trump put forward the "US priority", which made regionalization to split and lost in globalization. In Europe, the US strategy is shrinking. In this context, new forces are needed, and new programs are leading global governance to a new stage. China is the world's second largest economy, China's economic development can not be separated from the world, the world's economy also needs China.
From the financial, trade, investment the three areas, by the effect of new president of the United States and the dollar interest rate and other factors, the global financial market will remain volatile and uncertainty in the short term, especially in emerging market countries will have to face the risk of currency devaluation and Capital outflow. At the same time, world trade still lack of powerful support, which make slow growth. Although the rebound of commodity prices or will bring some demand, but the magnitude is limited, global trade growth rate will remain lower than the economic growth. Global investment will be stronger due to USD raised, new trade protectionism and other factors, the recovery process is blocked. However, the rise of the fourth global industrial transfer, may lead to rebound in global investment. In addition, the Hangzhou G20 summit strong impetus to the global efficient financial governance which is good for developing countries and inject new momentum for global economic growth.
The report notes that during the cyclical transformation of the world economy, China's five major development concepts will not only lead China's economic development, but also will lead the world economy into a new long-term positive kinetic energy. Globalization is at a crossroads in the transformation and incubation of the new cycle of the world economy. "One to one," the building tactics not only for the global economy out of the crisis haze, to realize powerful recovery and sustainable development provides new ideas, but also against the trend of globalization to promote economic globalization has injected new impetus and vitality.
In the future, Shinestar Group will take the opportunity to meet the challenges, and strive to develop themselves to produce more high-quality spiral submerged arc welded pipe, ERW steel pipe, stainless steel pipe, scaffolding, galvanized pipe and other products to develop China's economic.
Look back over past 2016,though China’s foreign trade growth fell,structure optimization,benefits of quality and so on showed many new changes and bright spot.As a Welding steel pipe, line pipe, straight seam submerged arc welding pipe, galvanized pipe, submerged arc weld spiral welded pipe, scaffolding and other products of steel production services provider,Shinestar group has been paying close attention to the development of foreign trade.Shinestar Steel Research Institute said the development way of China's foreign trade on the import and export trade structure, market distribution and trade subject has different degree of optimization and improvement in 2016 that mainly embodied in these aspects:
First,internal production of power to further strengthen,private enterprises import and export growth of 2.2% in 2016,accounting for 38.1% of China's total foreign trade, up 1.2 percentage points from 2015.Our trade way tend to be more reasonable,the general trade import and export growth of 0.9%,accounting for 55% of the total cost of the foreign trade of our country,up 1 percentage points from 2015.Gradient transfer of processing trade progressed steadily,the import and export of processing trade in the central and western regions increased by 3.2%,accounting for the proportion of total cost of the foreign trade in our country ,up 1.3 percentage points from 2015.The international market diversification has made some progress,some "along the way" along the country's rapid trade growth,to India, Russia, Pakistan, Poland and Bangladesh and other countries import and export growth of 4.1%, 8.7%, 7.2%, 4.1% and 9.2%.
Second,in the superior products in optimal out has made good progress.In terms of exports,China’s traditional advantage products exports growth remained,textiles, plastic products and toys export growth of 1.9%, respectively, 0.5% and 24.9%,still keep a good competitive advantage.At the same time benefit from China's abundant capital, perfect industrial system and strong manufacturing capacity, our country enterprise in the speed up to go out and promote the international cooperation capacity also led equipment manufacturing and export of high value-added products,China's enterprises in accelerating to go out and promote international capacity cooperation also led the equipment manufacturing and high value-added products exports.Some mechanical and electrical products and equipment manufacturing exports also maintained a good momentum, such as medical equipment export growth of 6.1%, auto parts export growth of 3.5%.
Third,in terms of import,China's crude oil, copper and other commodities imports in 2016 continue to maintain the growth momentum, which also shows that China's domestic economy is running smoothly, demand has picked up.At the same time, the policy effect of expanding imports and optimizing import structure shows that some high-tech products such as advanced technology, key parts and important equipment have a rapid growth in import.In 2016, imports of electrical products increased by 1.9%, of which turbojet engine imports increased by 26.8%, ship growth of 26.6%, measurement and analysis of automatic control equipment and apparatus increased by 10.7%.
The future, we need to be more active in the face of complex and volatile international and domestic economic situation and import and export environment, and strive to build an open economy new system, and continuously improve the quality and efficiency of foreign trade development, build a higher level of open economy, the full realization of the "big Into the big out "to" excellent into excellent "change. Shinestar Group will also adhere to independent innovation, pay more attention to cultivate technology, brand, quality, service as the core of the new advantages of foreign trade competition, to produce more high-quality welded steel pipe, pipe, straight seam submerged arc welded pipe, galvanized steel pipe, ERW steel pipe, scaffolding and other products, playing an international competitiveness of the steel group.
At present China economy is slow in stabilization, steady for the better.Supply side structural reforms achieved interim results.The positive factors of economic growth are increasing, but the structural contradictions and risks of economic development still exist.As the SSAW steel pipe,welded carbon steel pipe ,stainless steel pipe,and other products manufacturers service,Shinestar group has been very concerned about the development of Chinese economy.Today, shinestar Steel Research Institute talk about the risk of economic growth in 2017.
First, the risk of external shocks. The global economy is facing increasing conflict, after the international financial crisis, the developed countries in Europe and the United States have been mired in structural problems, economic reform is sluggish, slow economic recovery, conservatism tends to rise.Global economic growth is expected to be generally weak, developed economies are still slow growth, emerging markets and the development of the economy will only moderate growth.U.S. inflation is expected to push up interest rates and the dollar exchange rate,the new president of the United States proposed to reduce income tax, expand the scale of infrastructure, repatriation of immigrants and other policies tend to push up U.S.Emerging market countries economic recovery is not solid, accompanied by domestic risk is intensifying,especially continue to rely on credit to drive economic growth eventually leads to increased risk of damaging adjustment.
Second is the real economy from the bottom of the recovery, the economy is still downward pressure.In 2016, the real economy from the bottom of the recovery,Mainly rely on supply side reform is expected to promote the recovery of PPI from the bottom, the real estate market driven by the growth of real estate investment growth picked up.At present, the fixed asset investment growth downward pressure, has not yet appeared signs of cyclical rebound in fixed asset investment.Private fixed asset investment growth continued to fall, real estate development investment growth may slow down.
Third is the real estate market than expected development potential risks.2016 real estate market than expected development of stable economic growth has played a positive role, but its negative impact in 2017 need to be concerned.The real estate market regulation will have a negative impact on investment and bank profitability indicators.2016 in October, some cities have adopted a more stringent measures to regulate real estate, real estate investment may also be down accordingly.At the end of June 2016, commercial banks non-performing loans 1 trillion and 437 billion yuan, more than the same period last year 31%.Although the proportion of non-performing loans of commercial banks is only 1.75%, but the proportion of non-performing loans and non-performing loans rising trend both need to remain vigilant.
Four is the pressure of capital outflows and devaluation is expected to rise. Since 2016 halfyear, China's foreign exchange reserves continued to decline significantly. From January to November of 2016, the foreign exchange reserves accumulated decreased by 278.76 billion USD, the foreign exchange reserves of 3.05 trillion USD to the end of November.After CNY joined the SDR, the CNY against the USD accelerated depreciation, as to December 29, 2016, has exceeded 6.95 CNY/ USD. Next year, IMF will do more rigorous evaluation to CNY exchange rate control measure, which will make CNY capital control more difficult.
Shinestar Group will face marketing risk and challenges, and will make great efforts to produce more high quality ERW Steel Pipe,galvanized steel pipe ,stainless steel pipe accelerate enterprise transformation and upgrading, and develop China's economic.
Reduce the burden of enterprise: the way of reform is the fundamental
China's fiscal science research institute, said at the annual meeting of the strategy of social science college of finance and economics to solve the existing problems of enterprise comprehensive heavy burden not only rely on lower taxes, must want to promote all aspects of system reform, Shinestar of iron and steel research institute agree with it. Cost just rely on existing lower taxes, such as tax cut, cut, such as social security contributions appropriate to these as phased measures can be, however, may not rely on lower taxes to make the enterprise profit.
Enterprises in market competition to make money, in fact, depends on two aspects: one is the ability to create value. Second is the ability of cost control. At present, enterprise, industry and the economy as a whole are in a critical period of transformation and upgrading, climbing a camp, the firm's ability to create value is not strong, in the process of operating profit is thin. Shinestar group always pay attention to the innovation and development, continue to produce more technology content of Angle steel, galvanized Angle steel, channel steel, galvanized channel steel and other products, to further improve enterprise value. At this stage of development, on the other hand, some costs rise faster, such as artificial cost, environmental cost, etc. These costs rise is a sign of economic progress, but if the enterprise is unable to digest, will squeeze profit margins. Therefore, the enterprise profit space narrowing, actually is the result of the overall costs. To solve the problems of the current enterprise burden, is not just a question of tax burden, but comprehensive burden problem.
Some experts believe that the current public opinion excessively focused on the issue of taxes, it is one-sided. Comparing to traditional industries and emerging industries, emerging industries profit space is large, the existing taxes won't feel heavier; The traditional industry overcapacity, market is bad, in this case the heavier the cost will be back, so he wants the government to cut taxes. The government should give support to the traditional industry. However, tax reduction space is limited, more difficult is the issue of how to reform.
On the one hand, through reform and make the enterprise have a better business environment, reduce the cost of five insurance, institutional trading costs. At the same time reduce the cost of financing through the financial system reform, through the logistics system reform to reduce logistics costs, through the reform of administration monopoly to reduce labor costs and so on. In addition, while the iron is hot still need their own hard, ultimately depends on increasing ability of the enterprise itself. , experts say, is not only cost reduction policy issues, more important is the issue of reform, but also to improve its own ability truly. Hard, both macroscopic and microscopic unifies, transformation and upgrading of enterprises and industries to real, the transformation and upgrading of China's economy can truly. As the ERW Steel Pipe, galvanized steel pipe, channel steel, galvanized channel steel products such as steel production services vendors, Shinestar group will also improve their own ability, produce more quality products, truly realize the transformation and upgrading.