The impact of the situation in Russia and Ukraine on Chinese foreign trade
When war broke out between Russia and Ukraine amid turbulent global conditions, the resulting ripple effect quickly spread to various industries.
Jennifer McKeown, head of global economic services at Capital Economics, an independent economic research firm, said the big impact on Asia will come from the impact on consumer demand and export demand.
For the raw material
According to the China Keqiao Textile Index released on March 8, since March, the stock of weaving enterprises has risen, the transaction of polyester has increased day by day. But in recent days, prices have fallen slightly.
For the factory
Affected by commodities, market sentiment is also fluctuating and many manufacturers are starting to hold inventory.
However, the current COVID-19 is not yet optimistic, and some factories in China need to reduce production or stop production affected by this, and the corresponding order will also be delayed.
The China-Europe freight rail service is the main conduit for land freight transport between China and Europe.
Recently, the average delivery time has become longer. Some land transport routes have been affected by the war and have been suspended, which is also one of the results affected by the current situation. In this regard, the conventional lines of the China-Europe freight train have also been adjusted accordingly.
Since the war, some Chinese exporters have received feedback from customers to postpone payment, delay delivery and reduce the number of orders.
But on the positive side, Russia’s external demand for commodities and raw materials is expected to shift to China, which analysts say should boost Chinese exports.
And here is another fact that the whole production capacity will be full again from May or June, because there is another event like Asia Games in September in Hangzhou where the main fabric dyeing base area is. As the dyeing factories may be closed for about 2 weeks due to the Asian Games, we suggest all our partners in the workwear industry to consider the order plan out of caution and leave enough space for expectations. Delivery. Any needs, welcome to contact us.
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