In recent years, with the accelerated pace of economic opening up, China’s foreign trade has expanded to more than 230 countries and regions. And in 2020, when the global industrial economy was hit, Chinese industrial chain and supply chain recover quickly, which is becoming one of the important driving forces for global economic and trade recovery.

According to official data, in the first five months of 2021, China’s total import and export value was 14.76 trillion yuan, a year-on-year increase of 28.2%. Of which, the total value of exports reached 8.04 trillion yuan, a year-on-year increase of 30.1%. 

In this regard, some analysts pointed out that China’s merchandise exports have greatly satisfied the needs of many countries and are becoming a “stabilizer” for global economic and trade.

Recently, with the surge of new crown cases in India and Southeast Asia, Chinese manufacturers have developed more rapidly.

A large number of Indian chemical fiber orders flow to China

China is India’s largest trading partner. The fierce epidemic has directly impacted India’s supply chain, and India’s manufacturing industry has undergone a sharp decline since the end of March.

Especially in the Indian textile industry, due to the high rate of new crown infections in textile factories, most factories have stopped working and reduced production, there has been a large number of Indian textile orders returning to China.

In this wave of backflow orders from India, the products are mainly low-end and medium-end products, with a profit margin of about 10%. However, the profits of the textile industry are not high, generally around 20%.

In the future, India will supply low-end products to the world, while China  textile industry will go to the high end.

Vietnam order backflow

Since the epidemic began to heat up in May, countries in Southeast Asia have fallen into it.

Vietnam as the manufacturing country is no exception.

The Minister of Health of Vietnam announced at the end of May that a new mutant strain of the new coronavirus has been discovered in Vietnam, which is a mixture of mutant strains previously discovered in the UK and India. This mixture of mutant strains is “very dangerous” and more transmissible, and can spread quickly in the air.

Due to the need for epidemic prevention, Bac Giang province in northern Vietnam has temporarily closed 4 industrial parks, and the restart time will be notified separately. Three of the industrial parks have Foxconn factories.

Bac Ninh Province, where Samsung Electronics’ production base is located, also imposed a curfew on May 25. The shutdown of the factory has hindered Vietnam’s domestic production capacity and caused serious economic losses.

In order to prevent the epidemic from affecting production, many company in the manufacturing industry are now planning to relocate their production lines to China, where epidemic control is more effective.

In fact, since 2020, the spreading overseas epidemic has begun to cause a large number of buyers to choose to purchase from China.

China’s strong supply of raw materials, concentrated resource advantages and mature production lines play a key role.

Data is the best proof. Last year, China became the world’s largest foreign capital inflow country, reflecting the strong advantages of the security and stability of China’s industrial supply chain.

The epidemic has caused a huge impact on the global economy, which has made China’s advantage in the manufacturing industry more prominent. Buy from China is undoubtedly the safest and most cost-effective choice.