EU Economic Crisis, Jinjiang Shoe Enterprises Need To Take Precautions Ahead Of Schedule

　　馮女士在晉江有一家規模不算大的貿易公司，長期經營服裝產品的出口，主要市場在希臘、土耳其以及東歐一些國家。

In fact, she has been paying close attention to the evolution of the Greek debt crisis since last year, and has also considered reducing or even withdrawing from the market.

"But the strike was really sudden and the atmosphere was tense."

Ms. Feng said that when she learned that the goods could not be pferred normally, her first reaction was to get into trouble.

Fortunately, with the end of the strike, Ms. Feng's goods were delivered to the merchants.

"Where can I stand the trouble of their strike?"

Ms. Feng said with a bitter smile that this mythical country is now in a deep uneasiness, which is also worrying about export enterprises like her.

The instability of the domestic situation in Greece is the most direct impact, but Ms Fung and many Jinjiang exporters are more worried about the deep impact of the Greek debt crisis on the decline in social purchasing power and the market shrinkage.

At the beginning of this month, the finance ministers of the eurozone member countries decided to start a rescue mechanism amounting to 110 billion euros to help Greece out of the debt crisis.

In the next three years, together with the International Monetary Fund, we will provide 110 billion euro loans to Greece to meet Greece's demand for funds, of which euro zone countries contribute 80 billion euros.

In exchange terms, the Greek government has introduced a series of reform measures to reduce wages and reduce social welfare, so as to achieve the goal of reducing the fiscal deficit in the euro area.

It is committed to take stringent fiscal austerity measures in the next three years, reduce the budget by 30 billion euros, and ensure that the deficit rate will fall from the current 13.6% to the EU within 2014.

"It will definitely have an impact on Jinjiang's export to Europe, but it is only temporarily not known how big the impact is."

Yang Haichao, general manager of Xingsheng (Fujian) Weaving Co., said the most direct impact in the future may be on orders, and some customers will cancel orders in view of the decline in domestic purchasing power in Greece.

At present, many children's clothing is exported to Greece directly, and Yang Haichao has been paying close attention to the Greek market situation through recent contacts with local customers.

The industry in Jinjiang is worried that there are authoritative statistics in recent years. According to incomplete statistics from Sohu, there are nearly 20 thousand Chinese people who are in business and living in the Greek area. They are mainly engaged in clothing, shoes and hats and small commodities trade.

Chinese business turnover in Greece is expected to decline by at least 30% to 40% this year.

 　　   “蝴蝶效應”是否真會顯現

During the interview, reporters found that although the Greek debt crisis had some impact, some of Jinjiang's export enterprises had different understandings.

Wu Yunfeng, general manager of Fujian Dali knitting garments Co., Ltd., thinks that the impact of the Greek debt crisis is limited and will not have much impact on the export market.

The views of these enterprises are based on certain grounds: first, Greece accounts for only 3% of the EU's economic share; secondly, many enterprises in Jinjiang do not directly export to Greece.

But the latest macroeconomic report released by CICC claims that the risk of Greece's debt crisis and its spread may affect China's exports, although exports to Portugal, Italy, Ireland, Greece and Spain account for only 3.5% of China's exports, but the total EU accounts for 17% of China's exports, which is China's largest export destination.

Data from the Jinjiang Municipal Bureau of Commerce show that Jinjiang's total exports to the EU in the 1-3 month of this year amounted to US $90 million 670 thousand, accounting for 21.25%, representing an increase of 57.02%.

At present, the European Union is still the first choice for the export of Jinjiang's enterprises. Its exports account for 1/5 of the city's total, and the demand for the EU market has picked up in the post financial crisis era, especially the demand for textile and clothing products has increased significantly.

From the industry perspective, shoes exports 17 million 680 thousand US dollars, accounting for 19.50%, an increase of 28.83% over the same period, and textile and garment exports accounted for 48 million 960 thousand US dollars, accounting for 54%, an increase of 87% over the same period last year.

The market is not small, and even more frightening is that the Greek crisis is likely to trigger the "Butterfly Effect" in the euro area and even in Europe.

It is reported that after the outbreak of a serious debt crisis in Greece, the euro zone countries have adopted fiscal tightening policies to reduce budgets and public expenditure, and plan to reduce the proportion of fiscal deficit to GDP in 2013 and fall to the 3% ceiling set by the EU Convention on stability and growth.

Among them, the Spanish government plans to cut the fiscal budget by 50 billion euros in the next three years, reducing the deficit rate in 2013 from 11.2% in 2009 to 3%.

In addition, Portugal, France, Italy, Ireland, Holland, Luxemburg, Germany, Finland and Denmark also implemented austerity policies successively.

Britain, which does not belong to the eurozone, may also cut public spending, cut the rate or raise Mrs Be Thatcher in power.

Apart from the relative shrinking of the market, it is possible that the Fujian branch of China Export and Credit Insurance Corp will have a negative impact on exchange rate, trade environment and many other aspects.

It is reported that Greece's debt crisis will hurt the growth prospects of EU countries which are already very fragile, and make the euro lower in the US dollar. China's exports to this important market will face a double blow.

　　    企業要提前做好防范

It is reported that Jinjiang has exported 132 EU enterprises, including 37 newly developed EU market enterprises, realizing export of US $11 million 670 thousand and supporting the 12.87% share of the EU market.

Among them, Xie Xing commerce, Xingde weaving, Wu Fuxing import and export enterprises were the first to export to the EU market for the first time.

According to the insiders, after the financial crisis, the Greek debt crisis is unlikely to lead to a global crisis. However, in the specific trade process, enterprises should remain vigilant and avoid risks.

Zhuang Yuejin, deputy director of the Business Bureau, believes that the Greek crisis will not have a great impact on Jinjiang at present, because there are not many Jinjiang enterprises exporting Greece and the export share is less.

"But this Greek crisis has a great impact on the whole EU, and it is a warning to the operation of the EU system. If it is not properly handled, many EU countries may be implicated.

The EU is the main export place of Jinjiang, including Germany, Spain, Italy and other countries. If the situation is not so optimistic, Jinjiang will be greatly affected.

Therefore, enterprises should have a sense of crisis, always pay attention to local dynamics, and prepare for risk prevention and response ahead of time.

Zhuang Yuejin said.

China Export and Credit Insurance Corp Fujian branch responsible person said that in the course of trade, we should pay close attention to the credit dynamics of overseas customers and strengthen ties.

If it is on credit, accounts receivable should be promptly followed up, and if abnormal is found, it should be dealt with as soon as possible.

At the same time, we should pay attention to collecting materials such as contracts, documents, e-mails and so on.

In addition, we must pay attention to that the quality of products should be strictly checked so as to prevent the other party from rejecting goods with quality problems.

 　　   焦點關注

At noon on May 13th, Ms. Feng, who was watching TV on the side of her family, was disturbed by a news from CCTV.

The message is that the Greek trade union announced that it will hold a new round of national strike on the 20 th of this month. This is also the second major strike since Greece announced its fiscal tightening policy.

In the first half of this month, Greece held the first national strike. Seafarers and railway workers joined the strike.

Ms. Feng's container clothing product was "hung" at the dock without unloading and handling.

Although many efforts have been made, the goods have finally arrived in the hands of customers, but Ms. Feng, who has experienced this "shock", has more concerns about the Greek market.

Analysts believe that although the euro zone and the world monetary fund help, but the Greek debt crisis has undoubtedly become a "heart disease" in the euro area.

What is even more frightening is that the disease may extend to the whole eurozone.

Many thousands of miles away in Jinjiang, many enterprises smell a hint of anxiety.

There is still a big difference between how the industry looks at this debt crisis, but it is undeniable that the "Greek haze" has gone to Jinjiang more or less.