Chinese manufacturers are facing dwindling export orders, especially from the western hemisphere during the coronavirus pandemic. This decline can come as order losses, cancelations, and delays that threaten the survivability of export-oriented manufacturers in China.
Data from the National Bureau of Statistics (NBS) showed that China's trade value was $592 trillion in January-February 2020, plunging by 11% from the same period a year earlier. Exports decreased by 17.2% year-on-year to $292 trillion. China's plastics export value fell 16% to $8.2 trillion over the same period.
China's trade is expected to fall further in the coming months due to the fast spread of the COVID-19 in other major economies. A Disney toy supplier based in Dongguan shut its plant with 1,200 workers on March 18 due to export order cancelations, which drained the company's capital.
Fashion retailer Primark closed 376 stores across Europe and decided to cancel all orders from suppliers on March 23. Arcadia Group, the parent company of Topshop, has halted all payments to suppliers. Meanwhile, Britain's top department store Peacock canceled all orders until June 20.
China's Commerce Ministry canceled the 127th Import and Export Fair scheduled for April 15. While China's manufacturing PMI rose to 52 in March, the new export orders sub-index was below 50. The NBS also warned that the reading might not indicate a stabilization in the country’s manufacturing activity.
Tags: AlwaysFreeRegister,Asia Pacific,China,English,NEA
Published on April 3, 2020 12:46 PM (GMT+8)Last Updated on April 3, 2020 12:46 PM (GMT+8)
