Since early May, Europe has generally restarted its economic dependence. The number of new virus infections initially rebounded slightly, but has continued to drop to a relatively low level in the past week. Concerns about secondary spread have begun to ease, and capital market confidence continues to increase. For textile foreign trade, it has released a good signal.
But I never expected that due to its own ineffective epidemic prevention, the United States frequently attacked China in order to shift the blame. Sino-US diplomatic wars of words continued, and bilateral relations cooled. Now the Hong Kong issue may trigger a new round of political games between China and the United States. As a result, As a result, the RMB depreciated sharply.
Some analysts believe that amid continued tensions between China and the United States, the RMB exchange rate faces a bumpy road ahead. A new low of 7.2 yuan since 2008 has entered the market’s view. Some professionals also said: “The risk that China and the United States will evolve into a ‘new cold war’ and the first phase of trade may collapse may cause the RMB to depreciate beyond the 7.2 yuan mark.”
The continued depreciation of the RMB is undoubtedly good news for bosses who are about to settle foreign exchange. However, the intensified tension between China and the United States has made the recovering textile industry Foreign trade has cast a further shadow.
“It’s so difficult for textile workers in foreign trade this year. I thought I was looking forward to sunny weather, but who knew there was a hail of bullets ahead!” A foreign trade textile boss who has been in the business for more than ten years said.
The global economy restarts, and European and American orders “break the ice”!
In mid-May, the editor visited the market and found that with the restart of economic activities in Europe and the United States, many textile bosses said that foreign inquiry orders began to increase, and a few companies were increasing orders. Mr. Yuan, a foreign trade boss in Wujiang area, said: “Orders have recovered recently, mainly due to the rescheduling of orders that were previously canceled due to the epidemic and orders that were stopped during production. New orders are still relatively small.”
Looking back to March, due to the global outbreak of the new coronavirus pneumonia, foreign economic activities pressed the “pause” button. Domestic textile and foreign trade companies are in the process of resuming production and preparing to increase their efforts to rush the orders received before the year. As a result, most foreign trade orders have been canceled or delayed, and foreign trade orders were once “frozen”.
As overseas markets restart, orders from some countries have begun to “break the ice.” “Recently, our orders have been growing exponentially, mainly from the United States, maybe due to the lifting of restrictions abroad. Consumers are eager to buy things. At present, our orders can be completed until the end of June, mainly home textile fabrics.” Another foreign trade boss, Mr. Lu, said.
It has been five months since the domestic epidemic broke out and the overseas epidemic broke out. Currently, under strict epidemic prevention measures, the confirmed cases and infection rates in various countries have declined significantly. Many countries have gradually “unblocked” and resumed normal work and life.
For example:
Italy on 5 The retail industry reopened on June 18, the borders reopened on June 3, and the economy is gradually restarting;
On May 20, US Vice President Pence said, “All U.S. businesses The economies of 50 states have begun to restart.” On the same day, Bangladesh and India each added 5 new ports of call based on the existing waterway agreement;
The British Prime Minister said in May A press conference was held on the 28th, announcing: “Give the summer to the British people”;
Belgium plans to “lift the ban” in June, when all hotels, restaurants and cafes will resume Business
……
Mr. Zhang, a textile boss, said that during the worst period of the foreign epidemic, most orders were postponed or canceled. Now that the epidemic has improved, the previous prototypes have been responded to, and orders delayed due to the epidemic are also being restored, and production is being arranged. “The worst is over, and there is finally hope for the future.”
Sino-US relations continue to deteriorate, and subsequent orders are a mystery
Originally, according to the development of the plot, there will be a small wave of market prices in the foreign trade market in the next half month. After all, July and August are the traditional off-season for foreign trade. Many overseas countries will have holidays, and generally orders will be placed in advance. issued, but it is not the case.
After the Sino-U.S. trade war, a war of words began over the new coronavirus epidemic. Coupled with the United States’ containment of Huawei, the U.S. Senate passed a bill that may prevent some Chinese companies from operating in the United States. Listed.
After all these twists and turns, the Hong Kong issue has now become a potential flashpoint. The relationship between the two countries has taken a sharp turn, which has led to the market becoming more worried about the continuity of future orders. Many textile companies Foreign trade companies even plan to take turns in June.
As early as the beginning of the month of the survey, many foreign trade bosses were worried about the market situation in May and June. Because Trump frequently throws blame, it will disrupt many plans and make terminal orders more cautious. “Our boss plans to take a rotational vacation next month. He has been completing the orders he received before last year, but now there are no orders left. Looking at the current situation abroad, the economy is not likely to get better for a while.” A foreign trade salesperson said recently. ��
“Recently we have received several proofs, all of which are 200-300 meters in length. I don’t know if we can receive them later. If the United States continues to impose tariffs, it will inevitably It will affect subsequent orders,” said Mr. Chen, who has just been in foreign trade for two years.
Since this year, the internal impact of the epidemic on domestic textiles is still slowly recovering. Coupled with the deterioration of the external international environment, both domestic and foreign trade markets are currently facing greater challenges. pressure, market competition has become increasingly fierce.
Today, Sino-US trade relations are once again tense, which also poses a huge challenge to textile exports. After all, China is the world’s largest producer and exporter of textiles and apparel. Although currently textile exports have not fully recovered due to the impact of the epidemic, and the rising Sino-US trade friction has not had a substantial impact on current exports, it must be said that it is like a time bomb. It will send a negative signal to the market, thus affecting the placement of subsequent orders.
“We are very worried about what will happen to the orders after June. On the one hand, we are afraid that the Sino-US trade will cause the current orders to be placed in advance and overdraft the market outlook. On the other hand, we are afraid that the world’s largest and second largest companies will Discord among large economies will inevitably affect the global market, suppress market risk-taking sentiment, and be detrimental to market recovery,” Mr. Lu worried.
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