Foreign Trade: Order Shortage Or Exchange Rate Difference, And Malicious Tariff

This year, not only the textile industry has been hit by the new epidemic, but also by the global epidemic. With the passage of time, the economy around the world has been recovering, and foreign trade has finally shown signs of recovery.

Recently, Xiaobian learned from a conversation with a trader during a market research visit that the export volume of recycled fabrics has been greatly improved since August, with one or two cabinets out every day. Recycled fabrics are mainly exported to European and American countries, and European and American orders are improving. But it's more worrying to have orders. "At present, the orders on hand have been received in December. The market is getting warmer, but I am also worried that these lists will be cancelled at any time. These orders are finally exported to the United States, where the epidemic situation is very unstable. Nowadays, the situation of foreign trade and export is still turbulent, and there are many unfavorable factors, which are the worries of enterprises. "

And indeed, as the business owner said, recently, with the recovery of foreign trade, the single moth incident is emerging in endlessly!

RMB soars again, foreign trade people who have not settled foreign exchange have cried faintly!

Some people say: if the exchange rate rises to 6.5, it will be a useless year.

On September 15, the central parity rate of the RMB against the US dollar rose 139 basis points to 6.8222, the highest since May 13, 2019.

After the opening, the onshore and offshore RMB exchange rates against the US dollar both jumped, breaking the 6.80 and 6.79 levels successively.

After the outbreak of the new crown disease in the United States, the Federal Reserve released water without discipline and finally flooded. With the opening of the printing press in the United States, the dollar index has entered a downward trend since late March, and there is no sign of turning around so far. Since the end of May, the RMB has continued to appreciate. The exchange rate of US dollar against RMB has continued to appreciate from 7.17 at the end of May to the current level of 6.8. In addition, the exchange rate of RMB against euro, Japanese yen, British pound and other major currencies has also appreciated in recent years.

Looking back at the peak at the end of May, foreign businessmen can't help but look at each other with tears and speechless choking!

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, down 1.42%; among them, the highest was 6.8408 yuan on January 20, and the lowest was 7.1775 yuan on May 27, with an amplitude of 4.69%. From the end of May, RMB began to appreciate. From the perspective of offshore RMB, it has appreciated by more than 4100 points since the end of May, while that of onshore RMB has increased by more than 3800 points. The RMB exchange rate has appreciated by nearly 5% since its low point at the end of May! If the profits of export enterprises are less than 5%, they may be working for nothing, or even paying for them. Especially for labor-intensive enterprises with low profits, this year is also too difficult. Due to the outbreak of the epidemic, orders have been sharply reduced, and then the meager profits will be eaten by the exchange rate.

On the other hand, if we don't have foreign exchange settlement with us dollars in our hands when we do export, or if we negotiate the order according to the exchange rate a few months ago, how much loss should it be. After a visit to Weibo, a group of foreign trade people have been crying out.

New US sanctions against China! After the ban on Xinjiang cotton, six Chinese enterprises or institutions were banned from exporting

The U.S. Customs and Border Protection (CBP) banned the import of cotton, clothing, hair products, computer parts and other goods from six Chinese enterprises or institutions in a statement on its website on Monday (September 14). The move is mainly aimed at the Xinjiang issue. It is reported that the trump government has temporarily shelved the comprehensive ban measures on cotton and tomato products in Xinjiang, China, saying that it is still in the process of research.

The U.S. Customs and Border Protection (CBP) today issued five detention and release orders (wros) against Chinese products, arguing that products subject to wros are produced by forced labor. CBP acting Commissioner mark Morgan also said in a statement that today's decree sends a clear message to the international community that "we will not tolerate illegal, inhuman and exploitative practices of forced labor in the U.S. supply chain."

(source: CBP website)

According to the statement, the export ban will involve the following Chinese organizations:

1. All products from the fourth vocational skill education and training center of Luobu County, Xinjiang;

2. Hair products of Luobu hair products industrial park;

ZD Garment Co., Ltd;

4. Cotton produced and processed by Xinjiang Junggar cotton and hemp Co., Ltd;

5. Computer parts produced by bitland Information Technology Co., Ltd.

The so-called detention and release order, which allows the U.S. Customs and border protection to detain goods and products suspected of forced labor, has long been the law of the United States against human trafficking, child labor and other human rights violations. Last week, it was pointed out that the ban on cotton production in Xinjiang had been temporarily suspended, but all the relevant measures announced by the government were to be put on hold and all relevant entities were about to implement the ban on cotton production.

Xinjiang is the main cotton producing area in China. In 2019, Xinjiang's cotton output will reach 5.02 million tons, accounting for 85% of China's total cotton output. It can be said that most of China's cotton textile products are behind the figure of Xinjiang cotton. As the most basic and common textile natural fiber, cotton has an irreplaceable position in textile production. It can be predicted that after the United States banned Xinjiang cotton, textile foreign trade enterprises will inevitably bear greater pressure.

Due to the outbreak of the epidemic and the approaching of the general election, the recent foreign trade, especially the "single moth" in the U.S. market, trump played the so-called "China card" in order to get rid of the "pot" of ineffective anti epidemic. However, with the gradual recovery of foreign trade market, the business that should be done still needs to be done. Textile workers can only consider all kinds of risks as far as possible in the process of doing business and avoid them prudently.

On the other hand, after the first World War of this year's epidemic, many overseas terminal customers have suffered greatly, and the "cake" in the market is undoubtedly getting smaller. Therefore, the phenomenon of grabbing orders and competing prices is easy to occur in the market. Textile owners need to adjust their quotations carefully, and be careful to prevent the profit dilution in the settlement of foreign exchange due to exchange rate changes.