Views: 0 Author: Site Editor Publish Time: 2020-04-27 Origin: Site
Shaoxing textile enterprises cash flow tapped out
The owner of a foreign trade company in Keqiao, Shaoxing, "the international textile capital," said the impact of the epidemic outside China was fatal. Orders from European factories reduced and inventory accumulated, and half of the repayment may be uncollectible. Cash flow of many factories cannot last for three months.
Since early-Mar, the risk of small and medium-sized foreign trade companies orders cancellation has gradually increased hit by the accelerating outbreak.
In Jan-Feb, total value of China's merchandise exports reached 2.04 trillion yuan, down 15.9% from the same period of last year. Xin Guobin, deputy minister of the MIIT, said at a press conference of the State Council's joint defense and control mechanism held on Mar 30 that with the further spread of pandemic outside China, foreign trade import and export may further deteriorate and it is necessary to make preparations for early response.
Apparel foreign trade industry is one of the hardest hit areas under the impact of the epidemic. According to the data, ZARA and H&M have adopted measures such as large-scale closure of stores around the world, and their sales have been affected.