Since April 2022, affected by various factors, the exchange rate of RMB against the US dollar has fallen rapidly, depreciated continuously. As of May 26, the central parity rate of the RMB exchange rate has fallen to around 6.65.
2021 is a year when China's foreign trade exports surge, with exports reaching US$3.36 trillion, setting a new record in history, and the global share of exports is also increasing. Among them, the three categories with the largest growth are: mechanical and electrical products and high-tech products, labor-intensive products, steel, non-ferrous metals and chemical products.
However, in 2022, due to factors such as the decline in overseas demand, the domestic epidemic, and the huge pressure on the supply chain, export growth dropped significantly. This means that 2022 will usher in an ice age for the foreign trade industry.
Today's article will analyze from several aspects. Under such circumstances, is it still suitable to import products from China? In addition, you can go to read: The Complete Guide to Importing from China.
1. RMB depreciates, raw material prices fall
Rising raw material costs in 2021 have implications for all of us. Wood, copper, oil, steel and rubber are all raw materials that almost all suppliers can't avoid. As raw material costs rise, the product prices in 2021 have also risen a lot.
However, with the devaluation of the RMB in 2022, raw material prices fall, prices of many products will also drop. This is a very good condition for importers.
2. Due to insufficient operating rate, some factories will take the initiative to reduce prices for clients
Compared with last year's full orders, this year's factories are obviously underutilized. In terms of factories, some factories are also willing to reduce prices, in order to achieve the purpose of increasing orders. In such a case, MOQ and price have better room for negotiation.
3. The cost of shipping has dropped
Since the impact of COVID-19, ocean freight rates have been rising. The highest even reached 50,000 US dollars / high cabinet. And even though ocean freight is very high, shipping lines still don't have enough containers to meet freight demand.
In 2022, China have taken a series of measures in response to the current situation. One is to crack down on illegal charges and drive up freight rates, and the other is to improve customs clearance efficiency and reduce the time that goods stay in ports. Under these measures, shipping costs have dropped significantly.
At present, there are mainly the above advantages for importing from China. All in all, compared to 2021, import costs in 2022 will be significantly lower. If you are considering whether to import products from China, you can refer to our article to make a judgment. As a professional sourcing agent with 23 years of experience, we believe that now may be the perfect time to import products from China.
If you are interested, you can contact us, we are your reliable partner in China.
Post time: May-26-2022