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    Depreciation Of China's Textile And Garment Industry

    2010/6/2 9:41:00 19

    Clothing

    Experts believe that the impact of the rapid devaluation of the euro will be relatively lagging, and the growth of China's exports to Europe will slow down in the future.


    As the impact of the rapid depreciation of the euro may be relatively lagging behind, so in May, I had a slowdown in EU export growth. In June, the growth rate of EU exports to Europe will be more obvious, and the next may be further down 6% to 7%.


    The euro, once a spectacular euro, is now the biggest dilemma for Chinese exporters.


    "Recently, orders for settlement in euros have almost all suffered losses." The head of a textile and garment export enterprise in Nanjing, Jiangsu, spoke directly to our reporter about the impact of the continued depreciation of the euro. "The profit of textile and garment export is only a few points. The euro has depreciated more than ten points recently, which means that our cost has increased so much that it will definitely affect the purchasing confidence of the buyers."


    Experts believe that the impact of the rapid devaluation of the euro will be relatively lagging, and the growth of China's exports to Europe will slow down in the future.


    RMB's "appreciation" causes losses to enterprises


    The head of the above textile export company said that although the proportion of orders settled in euros is not large in the overall business of the company, however, due to the EU's economic situation is not optimistic, the European business department has warned that the export business in Europe this year is likely to suffer losses. "At present, we hope that the RMB exchange rate will remain stable, which is the only way to offset the impact of the depreciation of the euro."


    Since the beginning of this year, the euro has been declining in a weak position. So far, the total appreciation of RMB has reached 14.5%, which makes our exporters in Europe have to face the general cost increase.


    Huo Jianguo, President of the international trade and Economic Cooperation Research Institute of the Ministry of Commerce, analyzed in an interview with our reporter that the depreciation of the euro was relatively slow. However, in the less than a month from the end of April to the middle of May, the depreciation rate increased rapidly, almost equivalent to the effect of direct regulation and control of policies. Therefore, China's exports to Europe of Electromechanical, textile and other products will feel a significant impact later.


    Despite the US dollar settlement of all exports to Europe, Feng Bin, general manager of Chunlan air conditioning import and export company, still told our reporter that "if everyone is sitting on a ship, even if there is no direct impact, there will be indirect effects." He pointed out that the European economy has not been obviously revival, the cost pressure of the enterprises is already very large, and the products exported to Europe will not only raise the price but will be asked to continue to reduce the price by the buyers.


    Zhong Zhiming, chairman of Guangdong Shunde Jia Wei micro motor industry Co., Ltd., also said that in the past, European merchants were relatively straightforward when discussing prices, but this year they are obviously very sensitive to prices.


    Zhong Zhiming also mentioned that many European merchants have shifted their orders in the second half of the year to the first half of the year because of worries about the appreciation of the renminbi. Therefore, in the second half of the year, not only the European orders may be reduced, but also the profits will become even smaller.


    Stable Euro It's a top priority.


    Huo Jianguo told reporters that China is against Europe. Exit The growth rate is still maintained at 25%. However, because the impact of the rapid depreciation of the euro may be relatively lagging behind, the export growth rate of Europe in May has dropped down. In June, the export growth rate of Europe will decline more obviously, and the next may be further down by 6% to 7%.


    "At present, the United States has begun to worry about the trend of the euro, and China's exports will also be greatly affected. It can be said that stabilizing the euro is the top priority at present." Huo Jianguo emphasized.


    Wenzhou AOKANG footwear industry Li Haijun, head of import and export business, pointed out that the weakness of the euro reflects the current economic situation in Europe and the people's spending power. Because the main exchange rate risk is borne by buyers, it is very likely that they will not dare to take big orders and long bills, but turn down small bills and short lists, which will shrink the volume of China's exports.


    He also predicted that in the second half of the year, the company's export situation to Europe was not optimistic, and exports to Europe would decline this year.


    According to Reuters sources, the EU's Executive Committee's recent estimates show that the 16 countries in the euro zone fell to 17.5 in May, falling back to the lowest level in 7 months, while the wider EU 27 countries fell from negative 12.3 in April to negative 14.7.


    The decline in consumer spending has now become a weakness in the euro area. If the euro continues to depreciate, China's exports to Europe will be hit hard.

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