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    The Depreciation Of The Euro Is A Drag On The Asian Manufacturing &Nbsp; China'S Textile And Apparel Industry Has A Smaller Impact.

    2011/12/21 9:33:00 19

    Depreciation Of The Euro And The Impact Of Textile And Garment Industry

    International Institute of economics and politics, Chinese Academy of Social Sciences

    Trade

    Song Hong, director of the research office, believes that the continued decline of the euro will make

    Europe

    The export competitiveness of the country has increased, while China's exports to Europe have increased.

    Competitive power

    Relative decline.


    However, China's exports to Europe are mainly composed of low and medium end products, and the textile and garment processing trade products are the majority, and the impact is relatively small.


    In the long run, the decline in demand caused by the recession in Europe will lead to China's continued export to Europe.

    Sluggish

    Over the past few months, China's export growth in Europe has been decreasing gradually. This situation will continue for quite a long time. In 2012, China's exports to Europe may continue to maintain low or even negative growth.


    The euro will continue to face a downward trend and will have a negative impact on Asian manufacturing.

    The Japanese central bank's recent survey of the current economic situation shows that Japanese manufacturing industry is affected by the euro.

    exchange rate

    The impact of sluggishness.


    The export of enterprises decreased and the confidence of enterprises decreased.

    The Reuters survey shows that the euro zone 2012 will be a year of economic stagnation, and the impact of Asian manufacturing and its exports will also gradually appear.


    The euro continues to fall against the US dollar, which will have a great impact on the export oriented economy of Asia.

    The 4 ASEAN member countries, namely Indonesia, Malaysia, Philippines and Thailand, are in the lower reaches of the Japanese and Korean multinational production lines. The export of Japan and Korea will also be affected by the 4 countries' exports to Europe.


    In 2012, East Asia's export prospects for Europe will be even more bleak.

    The results of the December business short-term economic survey released by the Bank of Japan in December 15th showed that the judgement index of Japan's large manufacturing enterprises was -4.

    Among them, electronic machinery, petroleum and coal industry

    IFO Business Climate Index

    The auto industry is rising, and auto makers are still complying with the sharp drop in inventories after the earthquake, and the outlook index remains at 21.


    Japanese media analysts believe that the European debt crisis needs to rest for some time, and the US economy seems to continue to linger in the low position. The export volume of Japanese enterprises has declined, and the profit margins are facing even more severe challenges.


    Li Guangyao, Ph.D., of the school of public policy at National University of Singapore, Gu Qingyang, said Singapore's exports to Europe account for a high proportion of Singapore's total exports. The depreciation of the euro will have a big negative impact on Singapore's manufacturing exports.


    On the other hand, in a few manufacturing sectors such as electronics, Singapore needs to import some high-tech key components from Europe.

    The depreciation of the euro will reduce the cost of importing these components in Singapore, which, to a certain extent, can make up for the decline in exports of finished products caused by the depreciation of the euro, but this factor can not be overstated.


     
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