Affected by multiple factors such as the epidemic and the international geopolitical situation, my country’s foreign trade situation was severe in the first quarter. However, with the successive introduction of a series of policies to stabilize foreign trade and the improvement of the epidemic prevention and control situation, the foreign trade situation of many industries has begun to improve recently, and export orders have increased month-on-month.
Exports in textile, toy and other industries are booming again
Han Qian, general manager of Oriental International Group Shanghai Rongheng Trading Co., Ltd. (hereinafter referred to as “Rongheng International Trade”), which is mainly engaged in foreign trade of textile and apparel products such as women’s underwear and underwear, recently told a reporter from the Shanghai Securities News that the company was affected by the epidemic in the first half of the year. , shipment volume once fell by 30%, but with the resumption of work and production in May and June, through catching up, the total export volume in the first six months has increased by 3% compared with the same period last year.
Transportation barriers are also gradually being cleared. Boss Zhao, who is mainly engaged in the transportation of foreign trade textiles from Huai’an, Jiangsu to Shanghai, told reporters that before the epidemic, a 9.6-meter truck could make eight or nine trips from Huai’an to Shanghai every month, but when the epidemic was the worst this year, the number of trips to Shanghai was almost zero. “Currently, if the same truck runs frequently, it can make seven or eight trips a month.”
Data from the General Administration of Customs show that in May 2022, my country’s textile and clothing exports were US$29.227 billion, a year-on-year increase of 20.18%. Among them, the export value of textiles (including textile yarns, fabrics and products) was US$14.028 billion, a year-on-year increase of 15.71%; the export value of clothing (including clothing and clothing accessories) was US$15.199 billion, a year-on-year increase of 24.61%.
“Europe is hot, and the United States is picking up.” When talking about the company’s export situation this year, Zhang Kun, CEO of GCL Integration in charge of global sales, summed it up concisely and comprehensively in these eight words. He told reporters that overseas orders have grown rapidly, especially in recent months.
The home appliance industry also saw significant improvement in foreign trade. Industry online data shows that the central air-conditioning market showed recovery momentum in May, with exports reaching 1.1 billion yuan, a year-on-year increase of 12.6%. Color TV production and sales also achieved good growth, with a total export of 35.32 million units from January to May, a year-on-year increase of 10.8%.
In addition, toy exports are also showing signs of recovery. According to statistics from the China Toys, Baby Products Association, in May this year, China’s toy exports were US$4.16 billion, an increase of 33.1% over the same period last year.
Many listed companies benefit from the rebound in foreign trade
With the overall recovery of foreign trade, the product sales data of many listed companies engaged in foreign trade business have also shown warmth.
Yueyang Linzhi previously mentioned in answering questions from investors on the Shanghai Stock Exchange e-interactive platform that “the export volume of paper products has increased significantly year-on-year.”
Xinyaqiang, which focuses on silicone functional additives, also said on the interactive platform that “the company’s international market business maintained steady growth in the second quarter.”
Anhui Heli said on the interactive platform that the impact of the epidemic is gradually weakening, the company’s lithium battery new energy, high-end storage vehicles and other product structures have further increased the proportion of its product structure, and the scale of its export business has further expanded.
Lege’s overseas revenue accounts for more than 90%. The reporter called the company and learned that the recent improvement in the external environment, such as a decrease in shipping freight and relatively stable raw materials, has had a positive impact on its exports.
Haier Smart Home’s first quarter report this year showed that the company’s overseas business revenue increased by 4.2% year-on-year, and its operating profit margin increased by 0.1 percentage points year-on-year.
Dongcai Securities analyst Zhou Xuhui said that my country has the advantages of complete industrial categories and stable production, and its position in the global industrial chain will be difficult to shake in the short term. The degree of substitution of my country’s exports by ASEAN and other economies is limited. Currently, the global supply and demand gap is still large under the influence of the Ukraine crisis and the continued spread of the epidemic, and my country’s exports are expected to remain resilient.
There are still uncertainties in foreign trade in the second half of the year
“my country’s foreign trade has indeed been greatly affected by the epidemic, but it is also very resilient and will not be easily defeated.” Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce Research Institute, told reporters that the current growth is mainly restorative growth, and the industry Industries with independent chain supply chains are relatively prosperous. “For example, the exports of the automobile industry are still good, especially new energy vehicles, which have doubled, because my country’s industrial chain in this aspect is basically independent and controllable.”
Statistics from the China Association of Automobile Manufacturers show that monthly automobile exports in May hit a new high this year. From January to May 2022, my country exported a total of 969,000 vehicles, a year-on-year increase of 44.7%. Among them, 245,000 vehicles were exported in May, a month-on-month increase of 73% and a year-on-year increase of 62.3%.
Although my country’s foreign trade as a whole is showing a recovering trend, some garment foreign trade companies are still facing pressure. An industry insider engaged in foreign trade of garments told reporters: “Due to insufficient orders, most of our people now have one-tenth of our people going to the United States to contact customers.”
In this regard, Bai Ming said that the epidemic has highlighted the vulnerability of industries with relatively low added value to shocks.
Regarding the foreign trade situation in the second half of the year, he believes that there are still many uncertainties. “For example, if the Federal Reserve raises interest rates, will it cause a recession in the U.S. economy? It may have a relatively obvious spillover effect. Furthermore, can foreign trade growth continue to be maintained in the future? After all, many orders in May are backlogged in March and April. , what will happen after the order is delivered? So it remains to be seen in the second half of the year.”
He suggested that the foreign trade industry should improve its technological content and independent reliability of foreign trade, that is, the independence of the industrial chain and supply chain, and improve its industrial position.
“In the internationalIf you want to get a “high score” in the competition, you also need to look at product design capabilities, factory production capacity, price, business personnel quality, etc. “Han Qian said.
In addition to large enterprises, small and medium-sized enterprise exports also face more cost pressures in systems and liaisons. Yuan Tangjun, director of the Asian Economic Research Center at Fudan University and professor at the School of Economics, told reporters that using cross-border e-commerce and overseas warehouse platforms can integrate small and medium-sized enterprises and reduce the costs faced by each enterprise. “E-commerce coupled with the efficiency of modern logistics can quickly provide diversified products and turn disadvantages into advantages.”
Yuan Tangjun believes that when facing competition from Southeast Asian countries, companies must transform to the middle and high end of the value chain and produce higher-end, higher value-added products.
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