Euro Zone Economy "Fragile" Orders For Service Enterprises Difficult To Obtain

"The impact of the European sovereign debt crisis on Zhejiang's foreign trade will be more serious, and it is expected to be more apparent in May and June, or even the whole third quarter," one of the CITIC Zhejiang branch said.

The European and American markets have always been the biggest export destinations of Zhejiang textile and garment enterprises.

"Fragile", Ding Ying, marketing manager of Jetta Garments Co. Ltd. in Hangzhou, described the European business in the future.

Recently, the company was depressed, she said, because many customers were in Spain, Portugal and Italy under the debt crisis. In March, there were no new orders.

Like clothing exports, photovoltaic enterprises also encounter the problem that the other side can not pay the money.

A group of goods from a Hangzhou photovoltaic company sent to Germany was forced to stay at the port because customers could not pay.

"This Greek debt crisis has spread to Hangzhou's export enterprises, and some buyers in European countries have postponed orders. If Europe's economy deteriorates further, it may become a debt crisis in Europe as a whole."

A CITIC insurance official said recently that the company has made a risk warning for several countries in the euro area to prevent the expansion of foreign trade enterprises' losses.

Although the euro zone economy is not optimistic, business needs to continue.

"All contracts are signed in season, and now it is time to sign contracts for the third quarter or the second half of the year."

Ding Ying said that Zhejiang's foreign trade enterprises are most concerned about the development trend of the euro area and whether the euro will continue to go down.

In May 12th, at the seminar held by Hangzhou foreign economic and Trade Enterprises Association and member enterprises, enterprises discussed how to deal with the euro crisis.

"Changing the currency of settlement is the main means that Zhejiang enterprises can use."

Ding Ying said that, taking into account the future uncertainty of the euro, the enterprises that export to European countries can use Renminbi to settle accounts as far as possible. If the other side does not agree to settle in Renminbi, they will try to settle them in US dollars.

A member of the Hangzhou Municipal Foreign Trade and Economic Cooperation Bureau reminded that during the fluctuations of the euro area economy, the export enterprises should keep in touch with the deferred European customers and regularly understand the local market recovery.

In the near future, enterprises that export goods to Greece should be careful of Importers' Arrears of payment.

In addition, the Greek debt crisis has triggered a chain reaction in Portugal, Spain and other countries. There is also the risk of market deterioration in these areas. Recently, enterprises exporting goods to these countries also need to raise their risk awareness.