Therefore, since 2009, China has more than 28 provinces have increased the minimum wage standard, the general high temperature oil pump workers are more than 3,000 yuan a month, some factories even give more than 5500 yuan. High temperature oil pump material cost includes steel, rubber, hardware raw materials, logistics costs and other expenses, in recent years, with the impact of inflation, sharply rising. The high labor cost makes the price advantage of China's high-temperature oil pump export gradually lose, and some European and American customers have begun to transfer orders to India, Vietnam, Bangladesh and other lower-cost countries. This double exchange loss has hurt export-oriented firms more than rising raw material and Labour costs.
High temperature oil pump costs continue to rise, further compression of profit space, market share continues to decline. The supply pattern of rural labor force in China is changing from "unlimited supply" to "limited surplus". The increment of labor force between the age of 16 and 64 decreased at an annual rate of 13.6% from 2004 to 2011, and is expected to stop growing in 2015, that is, the demographic dividend will gradually disappear.
Europe and the United States and other countries continue to downgrade the credit rating of RMB appreciation pressure continues to increase, the large high temperature oil pump enterprises do not dare to rush to accept long foreign trade orders, in order to avoid exchange rate fluctuations bring losses. For export-oriented enterprises such as high temperature oil pump export, the real effective exchange rate rises by 1%, and the export/sales ratio decreases by about 0.3%~0.5%. Therefore, the cost of raw materials such as hardware and plastic has risen by at least 10%~20% on average in the whole year only because of the exchange rate factor. According to statistics from the International Labor Organization, workers in Indonesia are paid $148 per month, Vietnam $85 per month and Cambodia $61 per month, all far lower than in China.
China's high temperature oil pump export is facing the new domestic situation, it is urgent for China's foreign trade research and decision makers to coordinate the international and domestic markets, to calmly analyze the complex situation of opportunities and challenges, dig out the deep reasons affecting China's high temperature oil pump export. Meanwhile, the rest of the world's currencies continue to appreciate against the dollar, both more and less than the yuan.
