A Brief Analysis of April 2011 Foreign Trade Index

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As shown in Figures 1 and 2, the foreign trade prosperity index for April 2011 closed at 1603.43 points, down by 6.02% from March, down 21.46% from the beginning of the year, and up by 25.00% year-on-year; the foreign trade price index closed at 161.73 points, compared with 3 The monthly increase of 0.56% was 15.30% higher than that at the beginning of the year and 70.68% year-on-year. Foreign trade confidence index closed at 1038.29 points, down 0.55% from March. Due to the European sovereign debt crisis, the turmoil in the Middle East countries in North Africa, the appreciation of ***, the increase in labor costs, energy saving and emission reduction efforts, and the influence of multiple factors such as limiting electricity supply to avoid peaks, the textile foreign trade industry has brought tremendous The pressure led to a month-on-month decline in the foreign trade prosperity index for April; however, there was a partial increase in the demand for diversified international markets, and the foreign trade prosperity index was up from the year-earlier year-earlier year-on-year basis. Due to the increase in labor costs, the unit price of textile and apparel exports rose. The foreign trade price index rose compared to the previous month in March, and the advantages of upgrading products have emerged.

I. In April 2011, the foreign trade prosperity index showed a declining trend.

1. Affected by the appreciation of the renminbi, the profits of exporting enterprises are under heavy pressure. The Sino-US Strategic and Economic Dialogue will soon begin, and the exchange rate will once again soar. On January 4, 2011, the median price of one US dollar was 6.6215 yuan, and on April 29, the median price of one US dollar was 6.4990 yuan, a new high since the exchange reform was resumed. At the same time, the Fed announced that the second round of quantitative easing policy (QE2) will end on June 30 as scheduled, and the US dollar and the MX exchange rate will be of interest. China is currently the world's largest exporter, which means that the United States must seize the export market with China, which will certainly require the appreciation of *** to suppress Chinese exports. The industry expects that the appreciation of the *** will continue to maintain a gradual pace, it is expected to appreciate 4% to 5% in the next year. *** Appreciation still has a large impact on exports in 2011, especially for small-scale textile companies. The profits of small-sized textile enterprises are relatively thin, and there is no perfect risk prevention system. In the spring and summer of 2011, it will still be subject to certain shocks. Due to a host of unfavorable factors, the growth rate of exports still slows down.

2. North Africa’s Middle East countries are still in turmoil and foreign exports are partially blocked. Up to now, the Middle East countries in North Africa are still unstable or even turbulent. Under the influence of unfavorable factors such as the Libya war and the political instability in Yemen and Syria, the difficulty of sustained and steady growth in textile exports has increased. The tension in North Africa is still continuing. Economic development has been greatly affected or even hit hard. The purchasing power of the people and the market demand have been greatly impaired. In a short period of time, Shaoxing County’s exports to North Africa and the surrounding areas have still declined significantly. Due to the unstable and even turbulent situation in the Middle East countries of North Africa, the risk was relatively high. Orders were not dared to undertake, and foreign trade exports were partially blocked, causing the foreign trade prosperity index to decline month-on-month in April.

3. The decline in the growth rate of European and American markets is worthy of attention. In the dual role of the steady recovery of the global economy and the control of the country’s macroeconomic policies, although the textile and apparel industries in Shaoxing County have shown steady growth in the first quarter of this year, the decline in the growth rate of the European and American markets is worthy of attention. Since last year, there have been many trade remedy cases initiated against China's textile products. “Recall” has become a major form of trade friction in developed countries against China, which involves many textile and garment companies in Shaoxing County. The main export market for a children's clothing manufacturer in Shaoxing County is Europe, the United States, Europe, and other countries have always had high requirements for the safety of children's clothing, and technical trade barriers are constantly emerging. Some of these requirements are very demanding and companies are very helpless. The future prospects are hard to predict. There are new trends in the current trade barriers, and technical barriers have become the heart of many companies. Since December of last year, the EU REACH has added eight kinds of textile-related substances of very high concern. With the deepening of the implementation of this law, the technical trade restrictions China will face in the export of European textile products will be more stringent.

4, some textile exports declined. The foreign trade prosperity index of cotton and its blended fabrics, chemical fiber filament fabrics, tufted fabrics, embroideries, and home textile fabrics declined in different degrees, pulling the overall foreign trade prosperity index down.

Second, in April 2011, the foreign trade price index continued to climb.

1. Labor costs have risen, and some foreign orders have shown a loss. Due to the rapid increase in domestic labor costs, some companies have difficulties in recruitment and mobility of personnel. The shortage of talent will restrict the healthy development of textile enterprises. In addition, the cost advantages of neighbouring countries such as Vietnam, India and Bangladesh are reflected, and some European and American apparel orders have begun to shift to the surrounding emerging textile industrial zones. This year's most difficult problems are due to the increase in the cost of employment and the rise in the value of ***. Some of these difficulties in Shaoxing spinning and garment export companies are particularly prominent. Many operators of textile export companies stated that since the beginning of this year, the labor price has risen by 30% compared with the original and the price of products has risen. The price advantage has been gradually lost in the international market, and orders have also been lost, mainly to Vietnam, Bangladesh and India. . Due to the restriction of power supply and the avoidance of peaks, the delivery date of the order was extended, resulting in the partial failure of Shaoxing's textile and apparel companies to undertake external orders. Some textile companies in Shaoxing have increased their cost pressures, causing the unit prices of textile exports to continue to increase. The increase in labor costs eroded the profit of export-oriented enterprises' orders and prompted the contract prices of export orders to continue to increase.

2. The unit prices for export of various types of textiles have increased. Due to the increase in cost, the unit price of export of various types of textile products has increased. In this issue, the foreign trade price index of cotton and its blended fabrics, chemical fiber filament fabrics, embroidered goods, curtains, knitted crochets, and impregnated, coated, and coated textiles was raised in an unequal amount, driving the general foreign trade price index to remain small Climb the trend.

The 2011 China Keqiao International Textiles & Surface Accessories Fair (Spring) will be held from May 6th to 8th at China Textile City International Convention and Exhibition Center. By then, buyers from all over the world will gather in China Textile City, with higher added value. Export orders will follow suit. It is expected that the foreign trade prosperity index will rebound slightly in May 2011. However, the international market changes, the EU is the second largest export market in Shaoxing County, and this year it has increased trade barriers and demanded that 8 kinds of products with a high level of concern for substances exceeding the standard need to be notified to the EU before June 1st, greatly increasing the export of textiles and clothing to the EU. Difficulty. Recently, Brazil imposed a high anti-dumping tax on China's eight kinds of synthetic fiber knitted fabrics, and nearly 100 textile enterprises in Shaoxing County were “accepted”. With the increasing frequency of international trade frictions, the fundamentals of prevention of frictions by export enterprises in Shaoxing County are to focus on self-improvement, to raise the quality of products, and to truly implement transformation and upgrading into product development and enterprise development. Shaoxing's textile enterprises must prepare for the timely response, such as taking low-carbon, ecological, and environmental protection as the main direction for accelerating the transformation and upgrading, adjusting the product structure, and vigorously exploring emerging markets. At present, many companies actively adopt tests to ensure that products meet the requirements of the EU REACH regulations, to meet the high standards of the internationally renowned brand apparel, fabrics, and environmental protection in Europe and the United States, especially in the European Union market. International requirements change to more environmentally friendly and comfortable. Faced with the complex and ever-changing international market environment, Shaoxing textile and apparel export enterprises should still actively adjust the structure of their export products, strive to increase their export competitiveness, overcome difficulties, and strive to continue to achieve good performance in textile and apparel exports in the summer of 2011.

Issued:

Ministry of Commerce of the People's Republic of China:

China Textile City Construction Management Committee “China·Keqiao Textile Index” Compiling Office