RMB “broken 7” what’s the impact on the instrumentation industry?

Last week, the international trade relations, global stock markets experienced “Black Friday”, turns down. August 5, the RMB onshore, offshore exchange rate both “broken 7”, raising concern. Meanwhile, the yuan central parity against the US dollar fell below the 6.9 mark for the first time since December 2018. As the “7” is considered an important psychological barrier of RMB exchange rate has a significant indicator of the RMB exchange rate “broken 7” is bound to affect market sentiment Control Engineering Copyright , and thus the yuan “breaking 7” became a wholly one of the most talked about network hot topic.
So, the yuan “breaking 7” is a good thing or a bad thing? Import and export of the instrumentation industry will bring what kind of impact? Conducive to export, expand overseas markets as widely used in industry, agriculture, research and other areas of measuring instruments and equipment, collection, analysis and control of , instrumentation product range covers almost Applications in all areas of human activity. Not only expand the range of applications quickly, after decades of development, China’s instrument industry has formed a relatively complete product, with a certain scale of production and development capabilities of the industrial system, growing very fast, some of the products to meet domestic market demand, but also exported to overseas markets. From the number of instruments exports in 2017 our country, from January to December 2017, exports amounted to a total of 31 provinces and cities nationwide instrumentation industry was $ 43.871 billion, an increase of 27.15%. Since 2018 trade war fermentation, the United States imposed tariffs against many export enterprises really put pressure on profits, but over the past year, the majority of enterprises are actively seeking export market diversification to reduce US tariffs are subject to the impact of the enterprise. RMB “broken 7” of the instrument in the export trade of enterprises, help to reduce the foreign currency-denominated export commodity prices, increased exports CONTROL ENGINEERING China Copyright , increased corporate earnings, improving product competitiveness CONTROL ENGINEERING China Copyright , expand overseas markets. Therefore, the domestic instruments for enterprises, on the one hand can seize the opportunity, seize the global market in terms of price advantage; on the other hand CONTROL ENGINEERING China Copyright , companies need to continuously strengthen technological innovation, advanced to catch up, to fight for the interests of domestic users. Is not conducive to imports, increase their procurement costs, however, the yuan “breaking 7” is the “double-edged sword”, contrary to the export trade, import instrumentation procurement costs will increase. In terms of high-end instrumentation, our country still the main imports. Data show that from January to December 2017, the cumulative total imports of the country’s 31 provinces and instrumentation industry 66.52 billion US dollars, an increase of 47.97%. Since most imported instruments denominated in US dollars to the US dollar clearing, with the RMB “broken 7”, RMB purchase of imported equipment meant price increases. In the high-end instrumentation and components, due to lower domestic alternative products, domestic enterprises can only pay more to buy imported equipment, resulting in increased costs, dampen domestic demand high-end scientific instruments, hinder the progress of science and technology. However, the yuan “breaking 7” while reducing imports, will help improve the local currency-denominated import prices, increasing import substitution, to consolidate their business advantage in competing with foreign companies in. In the domestic instrument to meet the needs of the premise, users will turn to choose domestic instrumentation products, and promote the development of domestic high-end instrumentation. In recent years, affected by many factors macroeconomic regulation, exchange rate fluctuations, the development of domestic industries, China’s import and export trade instrumentation products market fluctuations. Domestic enterprises in the instrument concerned about the international situation changes, should pay attention to their basic work, such as product innovation, product quality, and management, deep secret agents in these areas, in order to survive in the face strong wind and waves.

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