China's environmental protection policy impacts some European stone buyers

For some time, buyers from all over Europe flocked to China to purchase a large amount of goods, including tiles, stone, and children's clothing. However, the times have changed. As the Chinese government cleans up polluting industrial bases, plus China's labor costs and the appreciation of the renminbi, the relationship between Chinese and European buyers is changing. "When my boss came to China 10 years ago, he had a lot of orders in his hands. Everyone wanted to do his business. It was really the buyer's market. But now even if you have an order, it is not obvious that the factory will follow you." Run." Hautzendorfer, who works in mainland China, said. Hausendorfer is responsible for the purchase of granite and marble tiles, which are then sold at European home improvement centers. According to Hausendorfer, the stone business was stagnant in 2008, during the financial crisis. Although the situation has improved, he is not optimistic about the future of China's stone industry, partly because of the adjustment of industrial policies. In the second half of last year, the Jinjiang government of Fujian announced that it plans to rebuild the ecology through mine closure operations. Jinjiang is located near the port city of Xiamen. The geological features of this area are coastal volcanic rock formations, known for producing decorative stone. These stone materials are very popular among customers in the European self-service decoration center and are one of the areas where Hausendorfer purchases stone. Some local suppliers have speculated that after the implementation of the shutdown measures, there may be only 70 left in about 400 quarries. According to Hausendorfer, the reduction in capacity and the closure of the quarry result in a wholesale price of decorative stone used in kitchens and bathrooms that will rise by about 8% this year. The shift of China's industrial focus is only one of many changes that affect some traditional trade patterns. As the value of the euro has fallen sharply since mid-2011, the appreciation of the renminbi against the euro has been enough to hit Howendorfer and other buyers from the euro zone. In addition to exchange rate reasons and environmental policies, for European stone buyers, the steady rise in wages of Chinese workers is also a factor in pushing up the price of stone. Hausendorfer said that migrant workers are less and less interested in the work that requires high-intensity physical strength. Stone workers with suitable labor skills can now earn about 7,000 yuan a month. This level is equivalent to the average salary of the white-collar workers. With the increase in operating costs in China, it has become a choice for European buyers by moving to other countries. However, not all Chinese-made goods are so easily replaced. Hausendorfer has considered purchasing stone in Shandong Province, where wages and other costs are relatively low. However, he eventually gave up the idea of ​​purchasing stone in Shandong, because in the harsh climate of Shandong Province, quarrying can only be carried out in certain seasons and cannot be mined throughout the year. “It’s not feasible to choose other potential Asian sources. For example, although the quarrying industry in Vietnam is thriving, the scale of production determines that it cannot replace China.” Hausendorfer said that it is not feasible to transfer production to the euro zone. Sex, in countries like Spain and Italy, operating costs are too expensive. “Turkey’s operating costs are indeed cheaper, but Turkey’s quarrying industry often has some machining processes that need to be done in Germany, such as polishing.” Weiler also believes that the process of transferring production from China will be slow, he It is not believed that there will be a large number of purchasers leaving China in the near future. Weiler said that China's manufacturing industry is the world's best, for example, its market share in the global toy market is as high as 95%. It is amazing. "China still has the advantage of large-scale production. This advantage is not easily replicated in other regions. ."

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