Archive for April, 2012

Statuary Holidays in China

Posted on April 29, 2012  by Xixi  in Culture, Holidays   No Comments »
Statuary Holidays in China

 Chinese statuary holidays: New Year’s Day ( January 1st , one day off ); Spring Festival ( Lunar New Year, 3 days off, namely, New Year’s Eve , the Lunar New Year’s Day and the following day) ; Qing Ming Festival (on the day of Qing Ming, one day off ) ; International Women’s Day ( March 8th , women have half a day off ); Arbor Day (March 12th ) ; International Labor Day ( May 1st , a day off ) ; Chinese Youth Day ( May 4, half a day off for all the teenagers above 14) ; Dragon Boat Festival (the 5th day of the 5th lunar month, one day off ) ; International Nurses’ Day (May 12th ); Children’s Day ( June 1st, children under the age of 14 have one day off) ; Anniversary of the Founding of the Chinese Communist Party ( July 1st) ; People’s Liberation Army day ( August 1st, soldier in active service have half one day off ); Teachers’ Day ( September 10th ) ; Mid-Autumn Festival ( Chinese Mid-Autumn day, one day off ) ; National Day ( October 1st, 3 days off) ; Reporters’ Day (January 8th).

China’s major traditional festivals: the Spring Festival, Lantern Festival, Qingming Festival, Dragon Boat Festival, Mid-Autumn Festival. Besides ethnic minorities have also retained their own traditional festivals, such as the Water Festival of the Dai Nationality, Nadam Fair of the Mongolian Nationality, Torch Festival of the Yi Nationality, Danu Festival of the Yao Nationality, Sanyue Street of the Bai Nationality, Song Fair of the Zhuang Nationaltiy, Cangli Nian and Ongkor (Bumper Harvest) Festival of the Tibetan Nationality, and the Flower Jumping Festival of the Miao Nationality.

The Canton Fair Experience Order Loss As Made in China Products Raise Price

Posted on April 28, 2012  by Xixi  in Comprehensive Trade Shows, Exhibition   No Comments »
The Canton Fair Experience Order Loss As Made in China Products Raise Price

The 111th Canton Fair (CECF) had come to a close yesterday. According to Liu Jianjun, the spokesman of the Fair, the number of European and American buyers began to stabilize. As for the buyers from Middle East and Russia, the numbers grow by double-digit. Reporter learned from the mechanical and electrical, lighting, auto and other industries, that although the number of the buyers attending this Fair had not experienced any major change, three problems, namely, the loss of European and American orders, the rising labor cost and the fluctuations in foreign exchanges, still exert great pressure on those exhibitors.

European and American Buyer’s Purchasing Intention Significantly Decreased

From recent days of visits, we get to know that apart from reduced orders, the trend of the increase in short-term orders and decrease in long-term ones in the second half of last year remains, and buyers from traditional market like Europe and America shows obvious unwillingness in purchasing, and although the orders from the emerging market are increasing, their reputation is to be improved.

 According to Du Deli, general manager of Zhejiang cutting-edge Car Accessories Co., Ltd, “This year there are less customers, still less to say the orders, compared with the time before the 2008 economic crisis, the European and American order reduced by 3 folds. Although the order increase in the emerging market offset the decrease in the European market, some of the customers’ credit is not good, making the breach of contract a common place. If the customer refuses to take the goods, the company would suffer from a great loss even if the deposit had been in place.

The salesman for the European Market at SUMEC Electrical and Mechanical Co., Ltd said that the preliminary estimate showed that the overall procurement of the European merchants declined by 30%. “Before, the European customers would made orders of thousands of machines, but now the orders has shrank to only hundreds.

The latest data from the Guangdong Branch of the General Administration of Customs evidently manifested this phenomenon. In the first quarter of Guangdong’s export and import volume with The European Union , Japan and China Taiwan are $ 22,150,000,000 $ 16,960,000,000 and $ 11,340,000,000 respectively, down by 1.3% , 2.9% and 6.3% respectively ; the imports and exports with the ASEAN is $ 21.11 billion , an increase of 0.5%; and that with Korea, $ 11.4 billion, a growth of 35.3%. Among which the export with Korea had increased by 1.1 fold. And the export and import volume with the Africa amount to 8.96 billion USD, increased by 53.4%.

Product Price Rise Cannot Keep up with the Rising Labor Cost

Apart from the worries about the orders, the companies still worry about the rising cost of the upstream cost. According to Du Deli, besides the rising cost of the raw material, the labor cost is also a big worry. Compared with last year, the labor cost increased by 25% to 40%, while the product prices over the same period rose by only 5% -10%.

Zhang Xiangchen , director of the Policy Research Office of the Ministry of Commerce previously cited Standard Chartered Bank’s findings of 200 Hong Kong enterprises in the Pearl River Delta that this year, wages have risen by 10%.over the past four years, the average annual increase of labor cost was 20%.
AlixPartners Consulting Firm pointed out that if the Chinese currency and shipping costs gradually increased by 5%, while the wage level of annual growth is 30 %. In that case, by 2015, the production costs will be even with Mexico, and as a result, the price advantage of the labor cost will weaken.

Most SMEs Would Have Difficulties in Deal with the Exchange Rate Fluctuations

After The RMB exchange rate floating range enlarged by one fold, the risk rises in short-term transactions. As a result, how to deal with the exchange rate fluctuations becomes an important issue of this trade fair.

Huang Liang, operation director of the, a website focusing on matchmaking for the overseas buyers and Chinese export companies, said that in face of the rate fluctuation, the enterprises can resort to non-dollar settlement, or to shorten the borrowing time as short as possible.

However, while fixed exchange rate can be a way. If the customers asked for an extension, the fixed exchange rate will expire. And as the added values of the products from SMEs are relatively low, when faced with rate fluctuations, these enterprises can do nothing but negotiate for a price rise with the customers. and as is often the case, the customers would not be able to fend for themselves, still less to say paying more. the only way left for these SMEs to struggle. Therefore, to produce competitive products is a necessity for enterprises’ transformation. Liu Jianjun also suggests that the export enterprises should increase their competitiveness and strive for a strong pricing power.

India Decided to Extend the Duration of Anti-Dump Taxation against the Chinese Tires

Posted on April 22, 2012  by Xixi  in Anti Dumping   No Comments »
India Decided to Extend the Duration of Anti-Dump Taxation against the Chinese Tires

According to the report of Indian newspapers, the Indian government has decided to extend the period of anti-dump taxation against the tires produced by China and Thailand so as to protect it’s own tire industry.

According to Indian Ministry of Finance, the anti-dumping measures against imports of  non-radical tires from China and Thailand would be extended to October 7 this year. Ever since October 8 last year, India has began to exercise anti-dumping duties on these products.

In last October, in response to Indian Automobile Tire Industry Association, the Anti-Dumping Bureau of Indian Commerce and Industry Department carried out investigation into the non-radial tire produced by China and Thailand and decided these products went against the anti-dumping rules.

That was not the first time when India carried out anti-dumping measures against Chinese tires. On January 1st 2010, also under the requirements of the Association of Indian Automotive Tire Industry, the Anti-Dumping Bureau of Commerce and Industry of India ruled to impose anti-dumping duties to the non-radial tires produced by China and Thailand, the amount of which ranging from 24.97% to 88.27%.

Besides, India has also extended the anti-dumping measures against Chinese-made flat-bottomed steel wheels.

Recent Cases of Anti-Dumping Measures against China
On April 6, The US Anti-Subsidy Investigations against Chinese-made Solar Cells published its preliminary rule of levying 2.9 percent to 4.73 percent countervailing duties against Chinese enterprises.
On March 19, the final rule of United States against fluorescent brighteners produced by China decided that an anti-dumping duty of 64% to 109% was to be levied from Chinese enterprises.
On March 12, Canada has made its final rule on the “double reverse” investigation against the Chinese produced oil-tubing nipple, which found that Chinese enterprises have up to 173.4% dumping behavior and 44.7% subsidies.
March 1st Mexican made the final adjudication to the Chinese-made graphite electrode and levied an anti-dumping duty of 68% to 250%.
February 17, India made the final adjudication to the Chinese-made calcined-soda, and levied an anti-dumping duty of $ 36.26 / ton.
January 3, Argentina made the final adjudication to the anti-dumping case of Chinese-made children’s and men’s clothing, and carried out a minimum price limit of $ 81.5 / pc.

Sea Freight Rate Increase After Labor day Holiday

Posted on April 21, 2012  by Xixi  in Shipping, Shipping News   No Comments »
Sea Freight Rate Increase After Labor day Holiday

As the Container Transport on the EU Line Seek to Raise the Fare, Heat in Crude Oil Transportation Begins Fading

The Container Market: This week, the volume of China’s export on container transportation market is rising steadily, the demand from the Europe, the United States and other major routes experience certain amount of growth. The freight index continues to go upward this week. The volume of goods transported through the European and Mediterranean routes demonstrates a steady trend and the freight rates increases slightly after two major price rises.

Shipping Market This Week: As the Container Transport on the EU Line Seek to Raise the Fare, Heat in Crude Oil Transportation Begins Fading

1?The container market
This week, the volume of China’s export container transportation market rose steadily, Europe and the United States and other major routes transport demand growth in the freight index continue to grow upward this week . European routes volume of steady, experienced two prices, freight rates have pulled back slightly. Meanwhile, nine shipping companies, including the Maersk, Hapag-Lloyd, COSCO Container Lines, China Shipping Container transportation announced on May 1st that they would raise the freight rates on the European and Mediterranean route, with an average increase of 400 USD/TEU. if succeeded, the average tariff of the Asia-Europe routes will return to or exceed the its peak in early 2010. On the basis of a second price rise on the weekend (15th, April), the American route achieved a space utilization rate of over 95 %. And the America West Route fares rises by 12.7 percent to $ 2,285 / FEU.

2) Dry bulk Market
After the Easter holiday, the market has become more active. reign Easter this week , market sentiment has been warmer , the BDI kept an slightly upward trend with the development of Capesize and Panamax vessels, among which the increase of the Capesize is driven by the rising demand of the imported ore resulted from the de-inventory process of Chinese iron ore. And the new pallet of coal and grain has supported the panamax index to rise higher than 10%. Meanwhile, despite the earthquake in Indonesia this Wednesday, the production of coal was slightly influenced as many major coal mine areas are far from the earth stricken region and these coal mines are primarily in the open air.

3. The Tanker Market
This week, although the international oil price shows a fluctuation combined with a downward trend, it maintains its high level. On Friday, the Brent crude oil from North Sea stood at $ 122.08 / barrel, a 1.5% down in one week.

Affected by the Easter holiday, this week’s crude oil transportation market transactions fell greatly. The freight rate of all types of ships experienced an overall fell. And the freight fare of the refined oil market varies greatly with the overall index remain stable. Viewing from an overall perspective, this week the international tanker transportation market indicates four typical ship market changes as follows: of VLCC : somewhat lower ; Suezmax : low still ; Aframax : shrinkage in turnover and lower tariff; Oil Tanker : transaction reduced with varied performance.

4) Coastal Bulk Market
This week Coastal Freight Index continued to decline. In the Shanghai Shipping Exchange, On April 13, China’s coastal areas (bulk) freight index closed at 1185.11 points, which fell 1.8 percent when compared with last week. Coastal coal, metal ore and grain freight rates fell by 2.2%, 1.2% and 3.1% respectively

China’s Export of Rare Earth to Japan Increased by 167% In the First 9 Month This Year

Posted on April 20, 2012  by Xixi  in Importing from China, Power Rationing   No Comments »
China's Export of Rare Earth to Japan Increased by 167% In the First 9 Month This Year

On the 16th, April, Ministry of Commerce spokesman Yao Jian said in answering a reporter’s question that during the first nine months this year, Chinese total exports of rare earth amounts to 32,200 tons, among which 16,000 tons were exported to Japan, an year on year increase of 167% , accounting for 49.8% of the total China ‘s exports of rare earths .

Yao Jian said in January-September, the average exported price per ton of Chinese rare earth to $ 14,800. Besides Japan the main rare earth export destination, in the first 9 month, China’s rare earth export to the US amounted to 6,200 tons, accounting for 19% of the total export volume, constituting a year on year increase of 5.5%.

Yao Jian said that out of the purpose of energy conservation, recently China’s rare earth exploitation, production and export sectors have strengthened their management measures.

He also said that the scale of China’s rare earth mining and smelting plans and export quotas reduced by 25%, 23% and 39% respectively as compared with that of the year 2009, and at the same time a 15-25% tariff is also imposed on the export of rare earth. Rare earth ore and 41 kinds of rare earth products are being included in the Prohibited List of the processing trade, and the management of the qualifications of the rare earth export enterprises are being strengthened.

China now has 32 enterprises with qualification for exports of rare earth, including 10 foreign-invested enterprises.

Yao reiterated that the main goal of setting restrictions to China’s rare earth extraction, production and export of is to further protect the environment and exhaustible resources. “China’s export restrictions are in accordance with the norms of the WTO, and were carried out in mining, processing and all the export.”

He said that over the years China has been facing the pressure of the environment and resources, in order to meet international market demand for rare earth; China strives to maintain a considerable amount of rare earth export. He hoped that other countries in the world with rare earth resources can further develop their own rare earth resources. And China is willing to cooperation with other countries in the world to further improve the green technology in mining and processing of the rare earth resource.

HSBC: China Is to Become the World’s Largest Trade Country by 2025

Posted on April 19, 2012  by Xixi  in General News, Importing from China   No Comments »
HSBC: China Is to Become the World’s Largest Trade Country by 2025

According to the survey released by HSBC yesterday, by 2025, the total Chinese trade volum is expected to reach 6?300 billion USD, up by 1.5 fold, which is twice the size of the global trade increase over the same period. And China is to exceed the US as the largest trade A

The report indicates that although in the near future the Chinese trade would face with uncertainties and even slow down just as other markets. Viewing from a long term perspective, China is still one of the major increasing trade powers in the world.

Among others, Brazil gradually becomes a very important trade partner of China. By 2025, the bilateral trade between China and Brazil is expected to exceed 130 billion USD. and the trade increase propelled by coal trade and other large commodity trade between China and Australia is expected to exceed 170 billion USD.

The report predicted that by 2025, the top ten largest trade countries and regions( ranking by their respective share in the world trade) are  China, the USA, Germany, Japan, France, Hong Kong(China), the UK, Korea, Singapore, Canada( tied with Russia).

China Furniture Products Quality Control Part 2: Check the Details of Specific Products

Posted on April 17, 2012  by Xixi  in Importing from China, Quality Control   1 Comment »
China Furniture Products Quality Control Part 2: Check the Details of Specific Products

1. L Types of Bed (single bed/ semi-double bed/ double bed and bunk beds, high beds): the bearing standard of the bed board is 180KGS.

Test method: put a 50CM * 100CM sand bag (180KGS) in the center of the bed board and the board should not be bent. For QC staff( 60kg) to walk on the bed to see whether to see if it is broken, and whether the number of the bedplate meet requests, or bed slats and MDF connections fit together seamlessly (the interspace shall not fit in a sheet of A4 paper). U-shaped gun nail shall be used when fixing the bed slats, and no long foot nails should be used. If the board is made of plywood, the QC should bend the board to do a test and judge the inner structure of the plywood board.

And the bearing standard for the bed screen is 60KGS. Test Method: put a sand bag (60KGS) in the center of bed screen bar for 0.5 hour, and the bar should not be bent.

Test Method: QC staff shall sit on the bed plate and move to the side and place strength on the center bar of the bed screen. Besides, the QC shall pull the bed screen outward with strength of 30KGS to see whether the bed rails and bed-screen were fixed properly.

Note: in accordance with the laws of Japan, the gap between the plates on the bed screen shall not be greater than 100MM. the bearing of the bed ladder is 150KGS. Test Method: QC staff to walk up and down and move around, and to separate the bed ladder feet and pedal by hand reversely. Check to see whether the connection between the foot and pedal is close. Note that the bed ladder pedal can not have any knots. And only iron wire wrapped with Styrofoam can be wrapped with tape.

2. Mattress (cloth): To check whether the color and material of the cloth and color match with the samples, and wipe the mattress with a white cloth back and forth for 5 to 10 times to see if the color faded. Whether the stitches are smooth and the threads exposed. And touch to check whether there is any needle or gun nail, as well as whether the surface is clean. And lie down to test the flexibility and balance of the sponge.

3. Student Desk: to test the stability. The minimum load-bearing standard of the table plate is 20KGS. Check to see whether the main board is deformed. And its upper shelves would have woolen felt attached to its bottom. Note that the color of the shelves and tables need to be consistent. The paint would generally be PU or UV, which are more smooth and hard to the touch. When checking, the QC should pull the legs to see whether the joints is sturdily built and tilt the desk for 30 degree to see whether it would fall down or not.

4. Cabinets (cabinets, drawers, wardrobe, and layer cabinet): Check the cabinet drawer headboard and sideboard to see whether they are vertical without bending, and whether the distance between each drawer head are the same. Quickly pull the drawer back and forth for 5 to 10 times to see whether the drawer wall and drawer head are installed properly, whether the rail is smooth, and whether the screws are loose. Check to see whether the caster can move smoothly and whether the brakes work. When packing, the Styrofoam shall be put between the drawer heads so as not to slide out drawer. Under the four corners of the drawer cabinet a triangle Corner, Corner general size 100MM * 100MM * 15MM) need to be added. Large drawer need to have a tie-bar at its bottom. When testing, the QC should press down with 15KGS strength. And for large drawer cabinet, on the back of the upper part will be added two triangle plates (each at one side). If the height of the cupboard is above 1200MM, a horizontal pull bar needs to be added. The QC needs to check whether the door is deformed, the switch is close together, the left and right are of the same height. Open and close the switch for 5 to 10 times to check whether the hinge is falling and the screws on the hinge are right in place. When it comes to glass doors, sometimes the buyers would ask for protection from both sides with Styrofoam. And for TV cabinet, the bearing standard is 100KGS and at least 3 TV sets could be put into it. Finally, for layer cabinet, check to see whether the screw nail would fit in the embedded hole and would not be so loose as to fall down. And the Shelves stacked need to be separated with EPE.

5. Dining Tables and Chairs: the load-bearing standard of the table panel is 100KGS. Test methods is for the QC staff (around 60kgs) to walk back and forth, meanwhile, the QC need to press the corner of the table to see whether there are other sides are tilted. When laid horizontally, the table is to go through a 20kg horizontal pushing test and will be pulled by the leg to see the strength of the joint. For a collapsible table, the bearing standard at the joint is 45KGS. According to the different length of the table, the back of the table panel need to be reinforced to reduce the occurrence of deformation.

China Furniture Products Quality Control Part 1: Common Knowledge and Standard

Posted on April 14, 2012  by Xixi  in Importing from China, Quality Control   1 Comment »
China Furniture Products Quality Control Part 1: Common Knowledge and Standard

1) Frame material: MDF / particleboard / plywood / solid wood. Now Japan’s requirements on furniture FORMALIN content are very strict, therefore, the materials shall all go through the E1 standard before export. And usually the standard falls into three categories, namely, E0/E1/E2.

2) Leather: leather / PU leather / PVC
Leather: with fuzz on the back and visible pores on the front.
PU leather: with fiber strand on the back and no visible pores on the front, and soft to the touch.
PVC: with grid -like cross- thread on the back and hard to the touch.

3) Adhesive: the adhesive should conform to E1 standard.

4) Structure: the structure of the furniture varies with the function of furnature.

5) painting (paint) : the types of paint falls into various categories , such as : LAUQE , AC , PU , UV , PE. Among which, LAQUE and AC belongs to the NC class, also known as nitrocellulose, and the hardness of which is not strong, and a fingernail would leave a mark. While the PU is called polyester paint, which is soft and full to the touch. Being thick and hard, the paint would not leave a nail mark. And UV and BE are more expensive paint. All these paint could be tested for their dissolubility and acid resistance.

6) Packaging: Double-layer corrugated Carton, and 15MM Styrofoam protection products shall be put in the four corners and sides.

7) General Standard for Furniture Material

Dead knots, oil heart, bark is not allowed in any part of the furniture.
Black knots can be seen on both sides of the material, and knots could be dug out by hand are called the dead knots.
Dead knot are not allowed in stress spots (such as table legs, chair legs, stair treads, the foot of the bed) living knot in the legs and stair treads is also unacceptable.
No knot is allowed in joints (for instance, spots for fixing tusk tenon, drilling, and for the installation of embedded nuts and other parts).
* The color difference should not be obvious. The products should be arranged in an array to make color comparison, with the color on the color disc as a standard.
*Wood moisture content should be in less than 16%

Steps and methods for furniture QC inspection :
a.  The carton shall be shook to test whether inside parts should become loose. Any sound of loose part may suggest the products would be unacceptable.
b.  To match shipping marks, size of the carton, packing method, thickness and placement of the Styrofoam according to the data. To check whether clean EPE were put between separated parts. And Generally, hardware accessories need to be pulled out of the carton with a red rope.
c. To check whether the Carton ID “assembly instructions inside ” and “parts inside” are consistent with the actual packing condition, whether the quality label and assembly instruction are included as required, whether the hardware accessories are in consistent with the assembly instructions, and no rust is allowed. To check whether the caster can perform normally, whether the chock works, and whether the screws and wrenches are consistent with each other. please note that some part are MDF or plywood, and no strong pungent odor is allowed.
d.  Installation should in accordance with the assembly instructions to check the whether connection of the holes are consistent, the assembly is smooth, and the instructions are correct .
e.  Visual inspection: No additional wood block and fill soil to the panel. To check whether the surface was scratched and no dead section is allowed. Besides, to check whether the fill soil is obvious to the eye and white soil to black knot is not allowed. The color of the paint shall be checked to match the color panel. The smoothness, thickness and color difference should also be checked.
f.  the moisture content : To be under 16%.

China to Levy 10% Tariff on Imported Furniture

Posted on April 11, 2012  by Xixi  in Tariff, Tax   No Comments »
China to Levy 10% Tariff on Imported Furniture

The six years of “zero tariffs” era for imported furniture is coming to an end. The 2012 Regulation No. 15, recently released by the China General Administration of Customs clearly defined that an import duty of 10% will be charged on solid wood furniture, leather furniture, rattan & bamboo furniture and other furniture since April 15, 2012, which means that imports of furniture is expected to usher in a new round of price surge. The industry insiders believe that this move is expected to give advantage to domestic brand of furniture which can take the opportunity to adjust the product structure.

Price Surge Is Expected to Be Around the May Day

Zheng Kai from Orient Securities told reporter of the First Financial Daily that analysts believe that the tariff adjustments may trigger a wave of price increases for imported furniture, an increase of 10 percent in tariffs on imports of furniture may set the terminal price grow even higher.

According to Huang Liguo, vice chairman of China Furniture Association, A lot of imported furniture is actually already raised the price. If tariffs rises, the overall cost of  will follow, and in ideas the furniture prices are bound to go up .”

However, when interviewed, persons in charge of many famous furniture brand such as red apples, Kinwai (Guangdong) , Roach Fort(France) , Natuzzi(Italy), Wheeler(Germany), said that at present they have not received the message that the import tariff should rise up to 10 percent.

Wang Ke, Head of the Guangdong Furniture Association, told reporter that the average increase in 2011 furniture industry was about 10% and is expected to rise further. And the price surge is expected to be around the May Day. And for the durable goods such as furniture, this surge has been maintained at a reasonable level.

However, faced with the soaring prices of furniture, consumers remain calm. Especially after the “Da Vinci incident”, consumer’s concerns are more centered on quality than price. “I would certainly not buy domestic produced furniture—I am too concerned about the quality. “Even though with a 10% tariff raise, the foreign producer, in order to deal with it, may undertake a certain part, while raise the price of the end product, so I do not think the price for foreign furniture would go up too much.” Said Mr Zhu, a consumer.

Opportunities for Domestic Produced Furniture

Influenced by the instability in the international economic situation, the domestic real estate regulation, as well as continued rising costs of raw materials, logistics, store rent, and human resources, the domestic furniture industry performed relatively sluggish in recent years. China Light Industry Association 2011 Report on the Import and Export Volume of the Major Furniture Products shows that last year ‘s wooden furniture, metal furniture , plastic ( 10,575 , -100.00 , -0.94 %), furniture imports were up by 25.58% , 15.45% and 193.76% , while the export volume experienced an increase of 0.87% , 4.44% and 9.01% respectively .

With an overall downturn on the domestic furniture market, will enhancing the tariffs on imported furniture would make more room for the domestic furniture to develop?

In fact, there has been a polarization within the domestic furniture industry—the larger brand price maintained its stability with a rise, whereas some small brands are showing the sign of experiencing a “price war”.

An East Regional Sales Manager of a well-known furniture brand told reporters that although the market does not as popular as it was in previous years, the sales are still growing. And at the same time the company would raise the price in March and April annually in the last two or three years, and the price increase is from 3% to 5%.

However, more small and medium-sized brands, under the sluggish exports and domestic market demand, are forced to choose to give discounts. many domestic furniture brand in Shanghai have made a 50% discount.

Many people within the industry said that if imported furniture increases prices because of tariff rise, it might be a great thing for the domestic furniture. The Orient Securities research report shows that Securities report showed that a higher magnitude of price increases in imports of furniture would lead to the gross profit rate of Company’s proxy become lower than the domestic furniture, and of course it may lead consumers to transfer to the domestic furniture and improve store profitability. Of course, by using imported furniture price increases as an opportunity, the domestic furniture can also adjust its product structure to enhance competitiveness.