This year, affected by the global COVID-19 pandemic, not only the textile industry, but almost all export industries have been hit hard. As time goes by, economies around the world have gradually recovered, and foreign trade has finally shown signs of recovery.
Recently, the editor learned from a conversation with a trader during a market research visit , after entering August, the export volume of recycled fabrics has greatly improved, with one to two cabinets being shipped out every day. Recycled fabrics are mainly exported to European and American countries, and European and American orders are improving. But having an order is even more worrying. “The orders currently on hand have been received in December. The market has recovered a lot, but I am also worried that these orders will be canceled at any time. These orders are ultimately exported to the United States, where the epidemic situation is very unstable. Today’s foreign trade The export situation is still volatile and there are many unfavorable factors, which is what enterprises are worried about.”
And indeed, as the business owner said, while foreign trade has picked up recently, , Yao Mozi incidents are emerging one after another!
The RMB soars again, and foreign traders who have not settled foreign exchange are already crying!
Some people say: If the exchange rate rises to 6.5, then this year will be in vain.
On September 15, the central parity rate of RMB against the US dollar increased by 139 basis points from the previous trading day to 6.8222, a new high since May 13, 2019.
After the opening, the onshore and offshore RMB exchange rates against the US dollar both jumped, rising above the 6.80 and 6.79 levels successively.
After the outbreak of the new crown epidemic in the United States, the Federal Reserve released water unscrupulously, and the flood finally came. As the U.S. began printing money, the U.S. dollar index entered a downward trend since late March and has shown no signs of reversing so far. The RMB has continued to appreciate since the end of May, with the USD/RMB exchange rate continuing to appreciate from 7.17 at the end of May to currently exceeding 6.8. In addition, the exchange rate of the RMB against major currencies such as the euro, Japanese yen, and pound sterling has also appreciated recently.
Looking back at the peak at the end of May, foreign trade people couldn’t help but look at each other with tears in their eyes and were speechless. choke!
The onshore RMB opened at 6.96 yuan at the beginning of the year and closed at 7.06 yuan in the first half of the year, a decrease of 1.42%; the highest was 6.8408 yuan on January 20, and the lowest was on May 27 It was 7.1775 yuan on day, with an amplitude of 4.69%. Since the end of May, the RMB has started to appreciate. From the perspective of offshore RMB, it has appreciated by more than 4,100 points since the end of May, while the onshore RMB has appreciated by more than 3,800 points. The RMB exchange rate has appreciated by nearly 5% since the year’s low at the end of May! If the profit of an export company is less than 5%, then it is possible that they are working for free or even working for a fee. Especially for low-profit, labor-intensive enterprises, this year has been too difficult. Orders have already dropped sharply due to the impact of the epidemic, and then the meager profits will be eaten up by the exchange rate.
Think about the other direction, we are exporting with US dollars in hand but no foreign exchange settlement, or according to the situation a few months ago If you place an order based on the exchange rate, what will be the loss? After browsing around on Weibo, a bunch of foreign trade people fainted from tears.
The United States imposes new sanctions on China! Following the Xinjiang cotton ban, 6 Chinese companies or institutions were banned from exporting
The U.S. Customs and Border Protection (CBP) issued a statement on its official website on Monday (September 14), banning Imported cotton, clothing, real hair products, computer parts and other goods from 6 Chinese companies or institutions. This move is mainly aimed at the Xinjiang issue. It is reported that the Trump administration has temporarily shelved the comprehensive ban on cotton and tomato products in China’s Xinjiang region, saying that it is still in the process of study.
The U.S. Customs and Border Protection issued five Withhold Release Orders (WROs) against Chinese products today, believing that the products subject to WROs are produced with forced labor. . CBP Acting Commissioner Mark Morgan also said in a statement that today’s order sends a clear message to the international community, “that we will not tolerate illegal, inhumane and exploitative practices of forced labor in U.S. supply chains.”
(Source:USCBPofficialwebsite)
AccordingtothestatementItshowsthattheexportbanwillinvolvethefollowingChineseinstitutions:
1.AllproductsfromtheFourthVocationalSkillsEducationandTrainingCenterinLuobuCounty,Xinjiang;
2.HairproductsfromLuobuCountyHairProductsIndustrialPark;
3.ClothingproducedbyXinjiangYiliZhuowanGarmentManufacturingCo.,Ltd.andBaodingLYSZDTradingCo.,Ltd.;
4.CottonproducedandprocessedbyXinjiangJunggarCottonandLinenCo.,Ltd.;
5.AnhuiHefeiBitland(Bitland)informationComputerpartsproducedbyTechnologyCo.,Ltd.
Theso-calleddetentionandreleaseorderallowstheU.S.CustomsandBorderProtectiontodetaingoodsandproductssuspectedofforcedlabor.Thisisalong-standingU.S.efforttocombathumantrafficking,childlaborandotherhumanrightsviolations.law.LastweektherewasnewsthattheU.S.governmentisabouttoannouncebansonallcottonandtomatoproductsproducedinXinjiang.However,therelevantbanshavebeentemporarilyshelvedpendingfurtherresearchanddiscussion,andwillbereplacedbyexportrestrictionsonsomerelatedentities.ban.
Xinjiangismycountry’smaincotton-producingregion.In2019,Xinjiang’s cotton output reached 5.002 million tons, accounting for 85% of my country’s overall cotton output. It can be said that most of China’s cotton spinning products are made from Xinjiang cotton. As the most basic and common natural textile fiber, cotton has an irreplaceable position in textile production. It is foreseeable that after the United States bans Xinjiang cotton, textile foreign trade companies will inevitably bear greater pressure.
Due to the fermentation of the epidemic and the approach of the general election, recent foreign trade, especially the U.S. market, has continued to suffer from “moths”. Trump is desperately trying to get rid of the “pot” of his ineffective fight against the epidemic. Playing the so-called “China card”. However, as the foreign trade market gradually picks up, business that should be done must still be done. Textile people can only consider various risks as much as possible in the process of doing business and carefully avoid them.
On the other hand, after this year’s epidemic, many overseas end customers have been severely weakened, and the market “cake” has undoubtedly become smaller. Therefore, the phenomenon of grabbing orders and price-fighting has continued. The market is easy to emerge, and textile owners need to carefully adjust their quotations to prevent profits from being diluted during foreign exchange settlement due to exchange rate changes. </p
