June 18 Trade Risk Alert
Release time:
2020-06-18 16:41
Source:
Global FDI to fall 40 percent, UN report says. On June 16, the United Nations Conference on Trade and Development (UNCTAD) released the latest "World Investment Report 2020" (hereinafter referred to as the "Report"), which predicts that global foreign direct investment (FDI) flows in 2020 will be based on US $1.54 trillion in 2019. Decline by nearly 40%, which will make global FDI below US $1 trillion for the first time since 2005. According to the report, global FDI is expected to decrease by a further 5% to 10% in 2021 and begin to recover in 2022. (First Financial Daily)
EU passenger car sales fall by more than half in May. According to the European Automobile Manufacturers Association (ACEA), EU passenger car sales in May were 581161, down 52.3 percent year-on-year, slower than the pace of decline in April (76.3 percent). In January-May, EU car sales were 3.33 million, down 41.5 per cent year-on-year. Car sales in all EU member states fell by more than 20%. (Ministry of Commerce website)
Bulgaria's economic income will be reduced by about 3.6 billion euros. The Bulgarian Institute of Market Economy forecasts that Bulgaria's economic income will be reduced by about 3.6 billion euros, which is equivalent to the income and property of 100000 Bulgarian families. The fact that the number of people currently starting work is higher than the number registered as unemployed is only a seasonal factor, and a second wave of unemployment is likely to occur. (Ministry of Commerce website)
Ukrainian government plans to introduce new standards for public procurement. Ukraine's Liga News Network reported on June 16 that Ukrainian Minister of Economic Development, Trade and Agriculture Petrashko announced that localization standards will be introduced for public procurement through Prozorro platforms. He pointed out that "state-owned companies or large government agencies should give priority to goods partially produced in Ukraine when purchasing goods." (Ministry of Commerce website)
The U.S. government plans to launch a trillion-dollar infrastructure plan to stimulate economic recovery.. On June 16, the Trump administration in the United States is preparing an infrastructure construction package of up to $1 trillion, which will focus on road and bridge projects to promote economic recovery. The preliminary version being prepared by the U.S. Department of Transportation reportedly reserves most of the funding for projects such as roads and bridges, but will also set aside about 1/4 for 5G wireless infrastructure and rural broadband. (China News Network)
U.S. Semiconductor Companies Will Lose $7 billion Due to Huawei Sanctions. "Edaily" reported on June 17: The US market research company strategyanalytics recently published a report entitled "The Negative Impact of Sanctions on Huawei on Global Communications, Semiconductors and the US Economy". The analysis believes that Trump's unilateral sanctions against Huawei will eventually cause US semiconductor companies to suffer heavy losses of about US $7 billion. (South Korea Edaily)
Ontario extends state of emergency until end of June. On June 17, the government of Ontario, Canada's largest province in population and economy, announced that it would extend the province's state of emergency after the new crown outbreak again until the end of this month. This means that although most areas of the province have entered the second stage of restart, the number of people gathered is still limited to less than 10. (CCTV News)
Brazil's central bank announces 75 basis point cut in benchmark interest rate to 2.25 percent. On June 17, Brazil's central bank cut interest rates by 75 basis points, cutting its benchmark interest rate from the current 3 per cent to 2.25 per cent, the lowest level since the country adopted inflation targeting in 1999. This is the eighth consecutive interest rate cut by the Brazilian central bank since July last year, in line with market expectations. (China News Network)
South Korea South Gyeongsang Road imports and exports both decline in May. According to a report by South Korea Qingnan Daomin Daily on June 16, statistics from South Korea Changyuan Customs on the 15th showed that on May South Korea, exports from Qingshang South Road decreased by 17.9 to 2.5 billion US dollars year-on-year; imports decreased by 17% to 1.5 billion US dollars. Among them, in addition to ship exports increased by 37.8, auto parts (-58.4), electronic and electrical products (-26.6), steel products (-22.8), machinery (-20.4) and other overall decline. (Ministry of Commerce website)
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The company was founded in 1997, currently 4000 a variety of models of automobile brake discs. Products are mainly exported to Europe, North America, South America, Australia and other countries and regions. At present to SAIC, JAC, BYD, Jinlong, Yutong and other domestic models to provide supporting. The company's process equipment strength, Japan's new east automatic casting line 6, commercial vehicle brake disc automatic casting line 2. There are 56 processing lines -6 full-automatic one-word processing lines and 30 robot processing lines. Packaging cleaning line 5, spraying line 3.
Since the beginning of this year, the price of raw materials has risen sharply, sea freight has soared, and the difficulty of finding a box of shipping space has seriously plagued manufacturing companies. The current power curtailment has made companies even worse. Take our company as an example. Since the power limit in early September, the company's production capacity has dropped by about 50% on average every day. Exports have decreased by 0.02 billion yuan. The performance rate of orders in hand is about 50%. New orders were reduced by 10%. These data are the impact of the current power rationing on enterprises. If the power rationing situation is not alleviated, the impact on enterprises in the fourth quarter will be more serious.
Recently, Yunnan, Jiangsu, Qinghai, Ningxia, Guangxi, Guangdong, Sichuan, Henan, Chongqing, Inner Mongolia, Henan and other places have begun to carry out energy control measures to limit energy consumption.
The total power generation in 021 is not low. In the first half of the year, China's total power generation was 3871.7 billion kWh, twice that of the United States. At the same time, China's foreign trade has grown extremely fast this year. According to data recently released by the General Administration of Customs, in August, the total value of my country's foreign trade imports and exports was 3.43 trillion billion yuan, a year-on-year increase of 18.9 percent, achieving positive year-on-year growth for 15 consecutive months, further showing a steady and solid trend. In the first eight months, the total value of China's foreign trade imports and exports was 24.78 trillion billion yuan, up 23.7 percent year-on-year and 22.8 percent over the same period in 2019.
The impact of the neo-coronary pneumonia epidemic on global supply chains continues, with high international freight rates, container shortages and terminal congestion still unabated, and labor shortages exacerbating the dilemma. The outbreak of the new coronary pneumonia epidemic in 2020, due to the obstruction of international freight, soaring transportation costs, international trade in goods greatly hindered, triggering a supply chain crisis in many countries (regions), since 2021, the new coronary pneumonia virus variant strain raging, so that the supply chain has not yet fully recovered.
Statistics from the China Association of Automobile Manufacturers show that in the first seven months of 2021, China's cumulative automobile exports reached 1.002 million, an increase of 1.2 times year-on-year, but the month-on-month growth was only 9.8 percent, showing a shrinking trend. Moreover, commercial vehicle exports fell 11.6 percent month-on-month, of which new energy commercial vehicle exports fell 57.8 percent month-on-month. It is said that the main reason for the decline in automobile exports is the poor shipping channels.
Product recommend
At present, 4000 a variety of models of automobile brake discs, brake drums with an annual output of 10 million pieces. Products are mainly exported to Europe, North America, South America, Australia and other countries and regions. At present to SAIC, JAC, BYD, Jinlong, Yutong and other domestic models to provide supporting.
At present, 4000 a variety of models of automobile brake discs. Products are mainly exported to Europe, North America, South America, Australia and other countries and regions. At present to SAIC, JAC, BYD, Jinlong, Yutong and other domestic models to provide supporting.
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