The appreciation of the yen has made neon's export-oriented enterprises continue to be sluggish.

Now it is not only the metal and textile industries that are affected, but also the mining industry has basically come to a standstill in the second half of the year.

However, whether it is metal textiles or mining, they are not the main output products of neon.

In the Japan-to-Mi trade, the share of semiconductors, automobiles, and home appliances, which are relatively strong, accounts for almost half of the total output.

And the more competitive in these three fields are only a few excellent enterprises.

Six companies in the semiconductor industry, including NEC, Hitachi, Toshiba, and Fujitsu, and Toyota, Nissan, and Honda in the automotive industry.

In the home appliance industry, Panasonic, Sony, Shirakawa Electric, Sharp, etc., the export products of these excellent enterprises account for more than half of the total foreign trade value of Neon.

According to statistics, 13% of all employees in Neon are employed in the above enterprises.

For a country, this ratio is actually very exaggerated.

Therefore, although many small and medium-sized enterprises are difficult to sustain, the total export share of neon has not been greatly affected.

However, it has not affected for the time being, and that does not mean that it will not be affected in the future.

Because of the appreciation of the yen, the price of neon products exported to the United States here is also rising.

In the current era, neon products are exported to the United States, which are first priced in yen and then converted into US dollars.

For example, a Toyota car is priced at 3 million yen in North America, which is 12,000 US dollars at last year's exchange rate.

However, due to the exchange rate, the price of Toyota cars in North America has become nearly 18,000 US dollars at the same price of 3 million yen this year.

With a huge gap of 6,000 US dollars in the middle, the people of the United States even like neon thin leather cars, and they have to weigh whether it is cost-effective.

In the beginning, Toyota will also reduce the price to maintain their market share.

But now this trick is not easy to use, because the government of the United States has imposed a price limit on neon imported products.

Neon companies cannot arbitrarily reduce the selling price of their products in North Rice, otherwise they will be subject to anti-dumping warnings.

The price reduction can only be reduced a little, and it must also be agreed by the Ministry of Commerce of the United States before the price reduction can be carried out.

Lao Mi is so unreasonable, deliberately limiting the price of neon products, so that it is not competitive in the North rice market.

In order to prevent its own market share from being encroached upon, neon companies are willing to maintain the market despite the deterioration of profits.

Of course, this also includes Shirakawa Electric, and since the beginning of the year, the export profits of Walkman and CD players have fallen again and again.

The share is declining at a rate of 2%~4% every quarter, and no one can stand it in a year.

And looking at this trend, it is likely to be the norm for quite some time to come.

If it weren't for its own unique technology, Shirakawa's situation might have been even more difficult.

In overseas markets, in addition to neon companies are producing products such as walkmans and CD players.

The country of Nazhou and the country of Mi also have their own related brands, but because of the late start, the market share has not been large.

Relying on their international popularity and unique technology in audio, Sony and Shirakawa Electric have been mainstream brands in overseas markets.

But no matter how mainstream it is, it can't stand the price rising and rising, and if it rises more, everyone will naturally choose the low price.

If it weren't for the fact that the portable Walkman and CD player, which occupy the majority of the capital, the price itself would be within three or four hundred dollars.

Even if the price rises by 40%, it is not too exaggerated, and it is much better than the thousands of dollars increase in cars.

Therefore, in terms of market share, Shirakawa Electric and Sony can barely maintain their advantage.

However, on some high-end models, sales have dropped significantly.

Looking at the financial report in his hand, Bai Chuanfeng frowned.

"In terms of high-end models, has Philips surpassed us now?"

"Hai" Hasegawa also frowned.

In the previous high-end market, the only one who could compete with Shirakawa Electric was Sony.

But because of the rise in the yen, Philips, which unwittingly ranked third, has squeezed Shirakawa Electric out of the second place in 10,000 years, and now the latter is in third place.

However, for this force majeure factor, not to mention Hase, even Shirakawa Kaede has no good way.

Philips is headquartered in Helan, and the currencies of the three countries in the Plaza Agreement have appreciated, but He Landun has not.

So when the technical gap is not too large, Philips quickly completed the overtaking.

"Speed up the development of the market in Tuzhou, Beimi doesn't let us reduce the price, then we will drop in Tuzhou!"

This kind of hooligan way of reducing prices, Shirakawa Kaede was also forced.

Lao Mi is too domineering to him, so he can only find a way from other places.

"In short, in the market that North Mi has lost, we need to make up for it from somewhere else.

In addition to the Tuzhou market, we must also step up the development of low-end markets in Southeast Asia.

Li Jiapo, Xiangjiang, and sticks, they should have no problem consuming low-end products. ”

This is also a way of open source, although low-end products are low-profit, but they can earn a little is a little.

Speaking of the Southeast Asian market, the revenue in a few years may not be comparable to that of Zhizhou.

However, after listening to Shirakawa Kaede's decision, Hasegawa was a little hesitant, "Eh, is the price reduced in Zhizhou?"

In that case, will the state protest? ”

Shirakawa Kaede thought for two seconds, but still stuck to what he had just thought.

"Let's do this first, and wait until there is a reaction from the state."

Now Zhizhou is still a plate of loose sand, even if there is an objection to the price reduction of Baichuan Electric, the implementation is early.

In order to reduce costs and ensure their own profits, don't you see that big companies like Toyota are also tightening their belts?

The cutting coolant that used to be used once and thrown away is now honestly collected and reused.

And with the continuous appreciation of the yen, not to mention profits, many neon companies have taken preserving the market as the first factor.

At this time, if you withdraw from the overseas market, it will be a major blow to the company. In the future, if you want to come in again, it will be very difficult.

The market has always been ruthless, as long as you disappear from the public eye for a while, who will remember you when the time comes.

Therefore, in order to keep the market, profit is no longer the first element to pursue, and even enterprises do not hesitate to reduce prices at a loss.

Shirakawa may not have reached that level yet, but the outlook for the future is also not optimistic.

Of course, it is not only Shirakawa Kaede who has a headache, but several giants in the fields of semiconductors, automobiles, and home appliances are also in a hurry.

Since everyone is a victim and a member of Keidanren, they all secretly decide to put pressure on the neon government.

Although when the yen appreciated, most of the chaebols within Keidanren voted in favor.

But no one could have imagined that the yen would appreciate so quickly.

At the beginning, the bottom line of appreciation was 1:200, but now, it is basically hovering between 1:150~1:160.

This exchange rate is a huge burden for any export-oriented enterprise.

As a result, with the combined efforts of most of the chaebols, the Nakasane cabinet was forced to find another way to cool the yen under pressure.

Continuing to sell the yen and eating into the dollar is one of the measures. At the same time, the new Minister of Finance, Kiichi Miyazawa, also began to visit the United States frequently.

Faced with Neon's appeal here, Baker's Treasury Secretary of the United States replied coldly.

"Each country has its own ideas about the currency market, and it is Neon's own judgment that it does not criticize each other and act on its own, and Neon's intervention in the purchase of dollars.

It's good for you to buy it yourself, don't expect Mi Fang to buy it too. ”

Since then, Neon has been isolated on the issue of exchange rates.

Another reason behind this is that both Germany and Britain want the yen to appreciate further in order to weaken the competitiveness of neon manufacturing.

is still the same sentence, dead friends do not die poor.

Your yen has risen so much anyway, it doesn't matter if it rises a little more.

In the face of international isolation, Neon has no choice but to continue to do things on himself.

As a result, in October, the Bank of Japan continued to cut its benchmark gold by 0.5%, and the bank interest rate reached a record low of 3%.

On the one hand, the reduction of interest rates can stimulate domestic demand, and on the other hand, it can also reduce the holding rate of international capital on the yen.

However, as before, the exchange rate of the yen has not changed much, and it is even rising.

At this time, even the radical policy of Kiichi Miyazawa began to panic, which is too abnormal.

The laws of economics that we have learned in the past seem to have completely lost their effect at this time, and there are no similar cases in history.

Kiichi Miyazawa, the uneasy Tibetan minister, called the head of the Bank of Japan Sumita several times during the long night.

"Sukita-san, what does the Bank of Japan think of the current exchange rate market? No problem tomorrow, right? ”

Faced with the exchange rate of 1:150, the panic in Miyazawa's heart was clear to even Sumita on the other end of the phone.

But in the face of such a question, what can Sukita answer?

The foreign exchange market is not controlled by the Bank of Japan, and there is nothing Sukita can do other than comfort him.

This is a small microcosm of the sharp appreciation of the yen.

The people rejoiced, the manufacturing industry wailed, and the government panicked.

However, near the end of October, with the neon government once again submitted a large number of domestic demand revitalization plans to the United States.

The United States suddenly relented about the neon appeal.

Reducing tariffs on U.S. products, opening up the semiconductor market and computer market, simplifying the review of imported products, and the continued reduction of interest rates on the yen.

After getting these votes, Baker finally stood with the Prime Minister and shouted to the outside world.

"As part of the ongoing dialogue between Japan and Japan on economic, trade and financial issues. The two countries coordinated with each other and reached an agreement on a range of issues of common concern. ”

Although it was not said what specific agreement was reached, the market believed that it was a consensus on the yen after the Plaza Agreement.

As a result, the yen began to decline, falling to around 1:164 in just one month, and remained in this range until the end of the year.

Seeing that the yen's appreciation finally showed signs of fatigue, the entire neon government and manufacturing industry breathed a sigh of relief.

Although the current exchange rate is still very high, everyone is satisfied that it can maintain this level.

It's no wonder that the previous rise was too fast, and now the exchange rate is almost the bottom line, and everyone can accept it.

But will things be so smooth sailing? Of course not, but that's for later.

'86 may not have been easy for the export manufacturing industry, but the people are very happy.

(End of chapter)