Foreign policies lead to blocked export "restriction of purchase order" to choke domestic sales

Recently, following the EU ’s implementation of the Forestry (FSC) certification of wood and wood products in March this year, the US Environmental Protection Agency (ePA) has proposed two proposed regulations to ensure that its domestically produced and imported composite wood products meet the formaldehyde determined by Congress Release criteria.

 

 

Statistics from the General Administration of Customs of the People's Republic of China released statistics recently. In the first half of 2013, Guangdong, China's largest furniture manufacturing province, exported 12.07 billion US dollars of furniture, a net increase of 2.377 billion US dollars, an increase of 24.42% over the same period of the previous year and 25.22% lower than the same period of the previous year Increase.

 

In contrast to exports, domestic furniture sales in Guangdong from January to June in 2013 increased by 8% year-on-year. From a growth point of view, it is 4 percentage points higher than exports. .

 

"Restriction of Purchase Order" Stifles Domestic Sales

 

In the face of blocked export, enterprises turned to domestic sales, which also formed a greater competitiveness in the domestic market to a certain extent. At present, cities in China are also implementing strict "restriction of purchase orders" on real estate, which undoubtedly chokes the domestic market.

 

Relevant data from the "2013-2017 China Furniture Industry Market Demand Forecast and Investment Strategic Planning Analysis Report" show that, affected by the country's macro-control of real estate, domestic furniture sales have also slowed down. In the first half of 2013, Guangdong furniture sold 61 billion yuan in domestic sales, an increase of 8% year-on-year, a decrease of 2 percentage points from the 10% increase in the same period of the previous year, and much lower than the average annual growth rate of 16.3% before 2012.

 

The analysis of the report pointed out that the weak domestic sales of the furniture industry in 2013 has a great relationship with the country's macro-control of real estate. The transaction volume of the property market has not improved much since the blowout in March, so the demand for furniture is also very limited. In addition, rising property prices have more or less affected consumers' budgets for buying furniture. (Editor: Peter)