The Munich Engineering Machinery Exhibition has ended. Like previous sessions, many new products and technologies have appeared at this exhibition, which is refreshing. The transaction volume of the exhibition also hit a new high. Of course, this is not surprising, because the time interval of three years is enough to significantly expand the global industry scale, so it is not surprising that the transaction volume increases.

The most insignificant but most eye-catching thing at this exhibition is that the Chinese exhibition group signed an order of US$230 million. This is because this number is really not worth mentioning compared to the total transaction volume of the entire exhibition. Equipment giants like Siemens and Caterpillar can reach this number with a larger order.

It is said that it is eye-catching because this is the first time that a Chinese engineering machinery manufacturer has won a big order at the Munich Exhibition. Nowadays, the Cold War has just ended. After the fall of the Soviet Union, China has become the only major power in the traditional Eastern camp, which makes people feel even more mysterious. Such an Eastern power, which is poor and backward in the Western impression, can actually steal the market of European and American established companies at the Munich Exhibition. This is undoubtedly a topic that can be fully hyped.

The Munich exhibition has always been the stage of developed Western countries, and developing countries rarely achieve good results in such exhibitions. In the past, the developing countries at the Munich exhibition were Brazil, South Africa and other few, and their products were relatively single, and sometimes they were directly produced by Western multinational companies in these countries, which was indecisive. However, the booths rented by the China Exhibition Group were not large in size, but they brought more than a dozen products, including large-volume mining excavators, large-tonnage electric wheel dump trucks, loaders, concrete pump trucks, etc. The product line is very wide, reflecting the size of a major equipment country.

The prices of Chinese products are extremely low, so low that customers feel like they are buying cabbage. Moreover, this low price has also impacted the price system of old Western companies, forcing companies such as Pumai and Haifei to lower their product quotations to calm the emotions of traditional customers.

All of these can certainly not escape the sensitive vision of Western financial journalists. For a time, some praises and some derogatory ones have made the matter of China exhibition group a hot topic in the media.

The European Commission, which had just been established, was actually involved in this topic. On the day of the end of the exhibition, the European Commission received a statement led by German PMA. In this statement signed by more than a dozen large European companies, it accused the Chinese government of manipulating exchange rates and seriously underestimating the value of the RMB, resulting in the serious low prices of Chinese engineering machinery products, and impacting the traditional market of European companies. The statement asked the European Commission to set up a special team to investigate the matter and impose severe punishment on China.

The European Commission convened trade representatives from various countries to discuss the proposal of Pumai Company. As a result, the delegates at the meeting almost rejected the demands in the proposal in unison, believing that the so-called Chinese government's exchange rate manipulation does not exist. China is a poor developing country, and its currency value itself is very low and there is no problem of intentional underestimation.

Of course, this is just the reply from the committee to Pumai and other companies. The real reason is that the European Commission believes that China's undervaluation of currency is a good thing for Europe. Currently, thousands of companies in Europe invest in China and use China's cheap labor to produce. The daily wages of Chinese workers are less than USD according to the exchange rate stipulated by China, which allows these European companies to still make several times more profits than before while significantly reducing product prices.

In addition, although cheap construction machinery from China made companies such as Pumai feel uncomfortable, cheap shirts and socks from China are the favorites of European people. Because Chinese goods are good and cheap, the price level of the entire Europe has been effectively controlled, and the expenditures for social welfare by EU countries have also been greatly reduced.

It can be said that in the eyes of these trade representatives of various countries, the Chinese are just a group of diligent old oxes. They eat grass and squeeze out milk. How can farmers think that cows are too easy to support?

"The European Commission believes that the fundamental reason for this is that your equipment is too profitable and has long charged customers with inappropriate high prices. The Chinese have not taken dumping behavior, they just return the price of the product to a normal level."

An official named Bovad of the European Commission replied to Heinzel. This was taken up by Heinzel. Pumai Company authorized him to submit a statement to the EU. He originally thought that he had gathered more than a dozen large enterprises, which was enough for the European Commission to pay attention. Who would have thought that the European Commission would have such an attitude after consultation?

"Mr. Bowad, our product pricing has always been like this, and there is no situation of making huge profits. The reason why Chinese products can affect us is entirely because their exchange rates are low. I have reason to think that with their quotes, each equipment produced will lose more than 30%." Heinzel argued.

"Can you come up with evidence?" Bovard asked.

“I can submit the production costs of our Pumai Company as a comparison.”

"But they are not Pumai Company. As far as I know, the average wage of ordinary workers in your company is 40 marks per hour, while the average wage of Chinese workers is 05 marks per hour. Do you think your production costs are comparable to those of Chinese people?" Bovaddow, as a trade specialist of the European Commission, he still has sufficient economic information.

"Mark 05 per hour!" cried Heinzel. "Do you believe that the wages of Mark 05 per hour can hire workers? Even if they live a simpler life, the amount of money is not enough of the calories they need every day. This only shows that the exchange rate stipulated by the Chinese is false, and their local currency is much higher than what they claim."

"This is just your guess. The European Commission will not consider your request until you can provide further evidence." Bovard shrugged and declared coldly.

He was not interested in arguing with the German in front of him. This guy was obviously a little crazy. According to Bovad's idea, you Pumai could also find a way to reduce costs. Why can't you move the company to China? The labor force in China is cheap, which will definitely greatly reduce your production costs. In this way, will you have competitiveness? Now Chinese people underestimate the currency and simply give money to Europeans. Europeans will not pick out this layer of window paper. Do you don't like good and cheap products?

Heinzel had no choice but to do anything when the proposal was rejected. Heinzel was very clear about the bureaucratic style of government officials. Although these officials often talked about "taxpayers", when "taxpayers" really wanted to do whatever they wanted to do, they would only put forward articles to perfunctorily. They would do as much as the articles stipulated. If there is no provision in the article, even if you kowtow to them, they would never do it.

There is no actual evidence for the exchange rate. If the EU thinks that the RMB exchange rate is too low and wants to force the RMB to appreciate, then they can find 100 reasons to do so. But if the EU doesn't care about it and companies want the EU to stand out, it will be more difficult than climbing to the sky.

Western companies all know that if you want to accomplish something, the most important thing is to "lobby". Find a few agents to reflect their opinions to the government. The government will naturally find a way to do it for the sake of votes. But if there is no such lobbying, people will be too lazy to work more. A cup of coffee, a cigar, and a Times's days after reading for a long time. Who doesn't like it?

Europe was not done. After Haifei and other American companies returned, the same proposal was proposed to the US Department of Commerce, but it was not adopted. In the 1990s, the United States was in the midst of economic prosperity brought about by the rapid development of information technology. As a country dominated by labor-intensive industries, China has almost no industrial competition with the United States, but it has great complementarity. Cheap goods from China can effectively reduce the living costs of the American people and thus reduce the fiscal pressure of the US federal government. The Department of Commerce will ask China to make the RMB appreciate unless it is crazy. As for the threat of a few Chinese engineering machinery companies to American companies, it is nothing more than a disease of scabies. What is the point.

Before the storm could be started, it had subsided. After all, major Western companies still received a large number of orders at the exhibition, and the difference was not much compared to previous sessions. Therefore, as time went by, the little unhappiness brought to everyone by the Chinese people was gradually forgotten.

The China Exhibition Group, which was not known to have been missed, returned to China happily. As soon as he walked out of the security check area at the airport, he received a warm welcome from various units.

There were not many people coming to welcome the company, only a few staff members in the company's office. The team was Zheng Yuxin, deputy director of the office. This was a lesbian in his early 30s, beautiful, smart, lively and capable. Because Feng Xiaochen repeatedly emphasized the principle of simplicity in the company, Zheng Yuxin and the others didn't even type a banner. They just made a cardboard on the packaging box and wrote the words "Welcome Mr. Feng", which made the people next to them mistakenly think that they were employees of a bag company, and maybe there were only a few people in the whole company.

The pick-up specifications of Lin Chong, Luo Ye and other units are very different. I heard that after signing a large order at the Munich exhibition, the top leaders of several units made a special trip to the capital and took people to the airport in person. The red banners were as overwhelming as rural weddings. If they were not concerned about the order in the terminal, these companies would have wished to bring the waist drum team and yangko team in the factory together, with the purpose of letting the people of the whole country know that they had achieved a "zero breakthrough" at the top international equipment exhibition.
Chapter completed!