European Debt Crisis Continues To Spread &Nbsp; Pressure On Chinese Shoe Companies Is Increasing.

On August 1st, US President Obama announced that the leaders of the US bipartisan party reached an agreement on the debt ceiling to raise the debt ceiling from the current US $14 trillion and 300 billion to at least US $2 trillion and 100 billion, and at the same time, we will cut expenditure by at least 2 trillion and 400 billion US dollars in two stages.

This means that the United States will continue to expand its debt limit and borrow more money to pay the debt it owed before, in order to avoid the risk of default on government debt.

Shortly after the announcement of the agreement, S&P, the credit rating agency, reduced the long-term sovereign credit rating of the United States from "AAA" to "AA+" and negatively positioned the rating outlook. This is the first time the US government has lost the "AAA" level in the history of credit rating, meaning that its credit rating is likely to be lowered again in the next 12-18 months.

What is worse, however, is the following chain reaction, like Domino, in the world.

Once upon a time, the global enterprises facing financial crisis were plunged into a mire in the harsh environment. After a long time of labor pains, they gradually recovered their strength, and those small and medium-sized enterprises without strong capital and outstanding advantages had already retired from the competition market in this storm.

China, as the world's largest producer and exporter, is closely linked to the global economy, and the problems caused by the financial crisis, such as market slump and weak consumer confidence, will inevitably involve the export of Chinese manufacturing industry.

For the Chinese shoe companies, which are already at risk, such as tight money, rising costs, lack of resources and lack of employment, the situation is worse than ever.

In particular, export oriented SMEs will be under great pressure in this "fermentation" debt crisis. Some experts say that the decline of the US sovereign credit rating is bound to cause the depreciation of the US dollar. The peer-to-peer is the appreciation of the renminbi. In the face of "internal worries" and "foreign aggression", how can these shoe enterprises withstand such market changes?

No one can predict whether the subsequent impact of this financial crisis will continue to expand. Enterprises should not sit still while they should respond positively.

From the perspective of OEM export, the appreciation of the renminbi will directly lead to the shrinkage of the order profit. Enterprises will either raise the price or lose money, and raise the price and worry about the problem of customer churn.

On the other hand, if foreign buyers lose confidence in the future economic situation, it will be possible for enterprises to reduce orders.

Therefore, at this stage, Chinese shoe enterprises should pay close attention to all kinds of information in international trade and economy, attach importance to the unexpected situation in the market, understand relevant laws and policies, and establish reasonable contingency measures and be vigilant to protect themselves.

At the same time, shoe companies should also be smart enough to "control the menu" with price standards, cooperate with stronger buyers, make strict explanations on interest issues, such as jointly determining certain exchange rates to settle accounts, prevent market mutations from causing enterprises to suffer damage, and in every critical period, the operation of each link should be more cautious.

Shoe enterprises must enhance their sense of risk. Before exporting goods, they should contact foreign customers through mail and telephone, get a clear reply to the export and export goods. They should recover the goods as soon as possible after export. Besides, they should pay attention to keeping the correspondence with foreign customers. If there is a breach of contract, they can be used as effective evidence, and enterprises can protect their rights and interests through legal means.

Of course, the support and regulation of the national government is also crucial. Shoe enterprises should pay special attention to some recent information and hints, and make full preparations for arming themselves.

The latest economic data released by the United States are gloomy, the European debt crisis continues to spread, the cornerstone of the global financial system has wavered, and the nightmare of the two financial crisis is probably becoming a reality.

The pressure on China's shoe enterprises is growing rapidly. Instead of worrying about being afraid, it is better to face difficulties and challenges directly, and to be more cautious on the way forward, so that we can go further on the road of development.