The global epidemic seems to be starting to break out!
Rough calculations show that countries with severe epidemics currently account for more than 30% of global GDP. Against this background, everyone has begun to worry about whether the epidemic will affect global economic growth. Stock markets in Europe, the United States, and Asia have all fallen recently. With the outbreak of the epidemic, logistics and shipping companies have been hit twice, and many well-known companies have been forced to be acquired and cut wages…
This kind of worry has also spread in the textile market. A foreign trade company in Wujiang area Textile boss said: Difficult! Foreign trade will be more difficult this year, and I don’t know to what extent it will be affected. I just feel that customers are slow to place orders, and we can only take one step at a time!
For textile bosses, this year’s epidemic is not just a “black swan” affecting China’s economy, but has become a key factor affecting the global economy in the first half of the year.
With the development of the epidemic in other countries, this uncertainty factor is increasing. At present, many economists are not able to make accurate judgments, but there is still a layer of haze in the hearts of Boss Bu!
Behind the fall of various countries, there may be a second suspension of demand!
In the face of China’s successful “anti-epidemic” experience, it is estimated that the spread of the epidemic will force more countries to adopt strict isolation and control measures, and even follow the Chinese model and impose restrictions on various economic activities. Pressing the “pause button” will inevitably cause the market economy to slow down in the short term.
Textiles and clothing are China’s traditional labor-intensive export industries and have always accounted for a large proportion of export trade. According to customs statistics, in 2019, my country’s total import and export of global textiles and clothing reached US$306.179 billion, accounting for 6.69% of the country’s total import and export trade.
Among them, the export volume of textiles and clothing was US$280.705 billion, accounting for 11.24% of the country’s foreign trade exports; the import volume of textiles and clothing was US$25.474 billion, accounting for 123% of the country’s foreign trade imports. %. In 2019, my country’s textile and apparel import and export trade achieved a trade surplus of US$255.231 billion.
Although at present, countries have not yet stopped work on a large scale, the epidemic continues to spread, and production in Japan, South Korea, and Europe may be affected. The European Union, the United States, Japan, and South Korea are all textile and apparel countries in my country. It is a major exporter of products, so if the epidemic breaks out globally, the textile and apparel industry will have a greater impact!
New orders are being placed slowly, some orders have been cancelled, and foreign trade bosses are worried!
As early as the early stage of the outbreak of the domestic epidemic, the textile industry was in a state of shutdown, which directly led to a one-month delay in the start of the industry. The delivery date of the order that was originally finalized years ago was forced to be delayed. It was not easy to wait until The market is gradually resuming work, but due to labor shortages, downstream printing and dyeing shipments are slow, resulting in delivery times of about 10 days, and some orders even 20 days. This has also caused some customers to cancel orders due to delivery issues.
“We just tested foreign trade last year. We received some foreign trade orders before the year and planned to deliver them after the year. However, due to the impact of the epidemic, logistics and production were hindered. Now some orders have been cancelled!” Mr. Xu, who has just entered the foreign trade circle, said. In addition, many textile bosses said that after the start of work, the order receiving situation was not as expected. Some textile bosses even said that no orders were issued nearly 10 days after work started!
In March, most textile companies have started operations normally. Although the degree of construction is affected by the return of migrant workers, normal business links have begun normally. However, it is understood that the situation of foreign trade orders this year is not as expected. Only a few textile bosses said that orders were placed compared to last year. Many textile bosses said that large orders were missing, the order volume was significantly reduced, and there were even price reduction operations, which led to textile bosses accepting orders. Singles are harder than in previous years.
The World Health Organization raised the global risk level of the new coronavirus pneumonia epidemic from “high” to “very high” on February 28. This is the first time that the global risk level associated with an event has been assessed as “very high” by the WHO since it systematized its risk assessment methodology in 2012.
It can be seen that the epidemic will have a considerable impact on my country’s foreign trade exports. At present, from a country perspective, the epidemic situation in Southeast Asia will be better than that in Japan and South Korea due to temperature reasons, so domestic exports to Southeast Asia are not expected to have a great impact; while in Europe, due to the uncertainty of the epidemic situation in Italy and other countries, it is expected that the epidemic situation in March and April will not be great. European orders may have some negative impact.
However, in general, the impact of this year’s epidemic on the industry may last for the entire first half of the year, but the global industrial chain is not easy to change, so textile bosses do not need to be too pessimistic, the cake is still there , just wait for the spring to bloom! </p
