Those Disappearing Orders Under The Impact Of The New Crown Pneumonia Outbreak

As of 22 yesterday, the total number of confirmed cases of new crown pneumonia has exceeded 680 thousand cases, of which nearly 600 thousand cases have been confirmed overseas. The rapid spread of the epidemic in the world has had a significant impact on China's foreign trade enterprises and related industries which are relatively dependent on exports from the European and American markets.

Don't think about making money at this time!

"I have reduced the price, and you still have to raise the price? Do you know how serious the epidemic is in Spain? Do you know how many people died? I didn't plan to make money on this list. Listening to the boss of the trading company, Ms. Li could not help asking, "do you know how much the carton price has increased after the holiday?" Do you know how much the electronic material has gone up? "

Ms. Lee and Mr. Wang have been engaged in foreign trade speaker business in Baoan District, Shenzhen for many years, and have a small factory of 100 people. Their products are sold all over the world. "At present, no customers cancel the order, and they are very busy after the start of the project, mainly dealing with the accumulated orders before the festival, which can probably be done until the middle of April. There is no new order after April. "

The order of a trading company is a "turning list" of a Spanish customer, that is, an old customer's order. "Recently, a lot of raw materials have gone up in price, such as cartons, which rose before the festival, and increased by 30% after the holidays. These factors were added to the price, and the price of each unit increased by two yuan, and my profit did not change." But the boss of the trading company disagrees: "at this time, you don't want to make much money. It's good to do it alone." Ms. Li smiles bitterly. The biggest hope now is a large list from the United States, which has sent dozens of samples to the other side, and agreed to deliver the goods in July this year. "If the global epidemic can be controlled in April, there will be great promise for delivery in July."

The real crisis will not emerge until April.

Mr. Zhang of Dongguan mainly engaged in stretch film processing. "After the holiday, it has been very busy, mainly in the rush of goods before the holiday." There is also a busy reason, because in the light of the uncertain economic situation, he is afraid to recruit people. "Now is busy. If you recruit people, but there will be no new orders after April, what should we do?"

From the perspective of customer orders, the current new list is obviously more cautious than before. "There is a customer who is placing the 1000 volume before the holiday, but this week he just gave me a list of 300 volumes." Mr. Zhang said. This is especially evident among customers with foreign trade. Packaging is an important part of foreign trade long-distance transportation. A large number of stretch films are used. Especially when shipping containers are packed, many layers should be wrapped with stretch film to prevent moisture, waterproofing and collision. However, since the outbreak of the new crown pneumonia outbreak, foreign trade has been greatly affected and indirectly affected the tensile membrane business.

Mr. Zhang said that several factories in his industrial park were ready for a holiday in April, because there was no order at the back. "The real crisis will not happen until April," he said. "In 2 and March, everyone has something to do." Relatively speaking, his situation is optimistic, because the biggest customer is a domestic express giant, this part of the business is normal, can protect his factory daily operation, and fewer workers, "can carry a few months." My intention now is to be steady. Customers who have long payment periods will not accept them. They would rather take a rest and leave a little bullets.

Cancel orders one day after the day before shipment.

Garment foreign trade industry is also one of the hardest hit areas under the impact of the epidemic. Europe and the United States gathered many well-known fast selling clothing brands such as ZARA and H&M, which were affected by the new crown pneumonia epidemic, and the above enterprises took a wide range of store closing measures in the world, and sales were affected.

A foreign trade enterprise in Guangdong is one of the partners of many European and American fashion brands. According to the reporter, in February, the domestic new crown pneumonia epidemic situation is grim, but the company's orders from Europe and the United States are basically normal, and reemployment is the biggest difficulty at that time, but these have come over.

However, beginning in mid March, the number of newly diagnosed cases in Europe and America began to explode, and the business situation of these enterprises was on the decline. On the one hand, European and American customers began to concentrate on cancelling orders. Even some customers were still pushing goods the day before, and the order was suddenly cancelled one day later. On the other hand, the payment period of the non cancelled part has been significantly prolonged, and the payment period of some goods has been extended from dozens of days to nearly a hundred days, which has further increased the cash flow burden of the enterprises.

As a response, the enterprises stopped ordering and extracting all the upstream materials, and took measures such as stopping customs declaration. However, due to the large quantity of materials ordered before, there would still be a lot of losses. What is more worrying is that demand is not clear when it will be able to recover. Many of the employees who are already very busy have nothing to do in the company.

Where is the way out?

Affected by the new crown pneumonia epidemic, the foreign trade of most countries and regions in the world has been impacted. Compared with the Asian countries such as Japan and Korea, the impact of exports in the first 2 months of our country is more obvious.

According to customs statistics, the total value of imports and exports of China's goods trade was 4 trillion and 120 billion yuan in the first 2 months of this year, down 9.6% from the same period last year. Among them, exports were 2 trillion and 40 billion yuan, down 15.9%; imports 2 trillion and 80 billion yuan, down 2.4%; the trade deficit was 42 billion 590 million yuan, a surplus of 293 billion 480 million yuan in the same period last year.

According to the study of Huajin securities, from the point of view of China's export structure to the US and Europe, the top ten commodities account for nearly 70% of the total volume of exports. It is expected that the export will slow down or become more obvious, mainly including mechanical and electrical products, machinery products, textiles and clothing, furniture products, industrial metals, plastic rubber, toys and so on.

In view of the difficult situation facing the export industry, governments at all levels have taken certain measures. Earlier, in order to stabilize foreign trade and stabilize foreign investment, we should guide financial institutions to increase foreign trade credit, and implement policies such as loan repayment, repayment of principal and interest, and so on. Guangdong, Zhejiang and other major foreign trade provinces have also introduced some measures to stabilize the foreign trade situation. Protecting the market, guaranteeing orders, keeping shares and maximizing the loss of orders are urgent tasks.

Export-oriented enterprises have also intensified their efforts to expand the domestic demand market, and expanding new consumption has become a common choice. Even vice mayor took the lead to help foreign trade enterprises expand the domestic demand market. In March 25th, the Ningbo municipal government took the lead in signing strategic cooperation agreements with many partners to promote export oriented production to the domestic demand market, and put forward a package of action plans.

In addition, the Ministry of Commerce and China Export and Credit Insurance Corp jointly guide enterprises to make full use of their export credit insurance policy tools, actively provide customers with trade background and related information on breach of contract, improve the enthusiasm of banks to expand the policy of financing, and promote the "bank guarantee" and other bank insurance cooperation modes to ease the financial pressure of foreign trade enterprises.

It is reported that export credit insurance is a kind of credit insurance which is insured for the loss of business and politics of importers in the course of export business. It is a non-profit policy insurance business. Just last month, a well-known mobile phone exporters in Shenzhen received a compensation amount of up to US $7 million 485 thousand and 100 from China Export and Credit Insurance Corp China Export and Credit Insurance Corp, which resulted in overseas delinquencies in the export of products.

The research view of CICC believes that the overseas epidemic is on the rise stage, and the external demand may be further dragged down. The steady growth will mainly depend on the stable domestic demand policy. As long as the epidemic situation is controlled and external demand is stable, stable foreign trade will be able to see substantial results.