From zero inventory to inventory backlog, in a short period of one year, the automotive industry in Jilin Province is facing a severe test.

Due to the spread of the financial crisis, Jilin Province's automobiles, wood products, steel, and border trade have all been affected to varying degrees. Some export-oriented enterprises have faced a severe situation in which export orders have been reduced and economic benefits have fallen sharply. Some companies have been forced to stop production or restrict production.

In response, the Department of Commerce of Jilin Province put forward seven suggestions, hoping to transform the impact of the financial crisis on foreign trade and export enterprises in Jilin Province.

Financial Crisis Increases Car Inventories in Jilin Province

Demand in the international market decreased and orders decreased, and Jilin province's exports to foreign countries slowed down. Most of the industries and major trading markets in Jilin Province have been affected to a large extent. Some export-oriented enterprises have faced a severe situation in which export orders have decreased and economic benefits have fallen sharply. Some companies have been forced to adopt measures to restrict production and stop production.

Imports and exports of the auto industry have encountered cold weather. The turmoil in the exchange rate of the export destination of automobile products in Jilin Province resulted in the reduction of 60 million U.S. dollars in annual orders for parts and components exports in Jilin Province.

In addition, the demand for automobiles in major export overseas markets in Jilin Province has dropped significantly.

Various risks increase corporate financing difficulties

The outbreak of the financial crisis has caused the global economy to shrink. Many foreign companies and banks have been caught in financial difficulties or faced closures. This has led to a decline in international trade commercial credit and bank credit.

In the past two years, the state tightened its monetary policy. Banks reluctantly borrowed money. Financing of foreign trade companies in Jilin Province was generally more difficult, with liquidity companies and SMEs particularly difficult. Some advantageous agricultural products in Jilin Province, such as mung bean and ginseng, account for more than half of China’s exports. However, in recent years, Jilin enterprises have been able to export only a small part of them. The remaining majority of the provinces have been supplied or purchased by other provinces, directly affecting 5-6 billion US dollars worth of exports.

In addition, the international financial crisis has also led to a decline in international trade credit. In order to reduce the risk of foreign exchange collection, enterprises should adopt more export credit insurance business. However, because Jilin Province companies generally do not have the habit of using this insurance, the use of export credit insurance business is even more difficult.

FOTON Light Truck Spare Parts

Foton Light Truck Spare Parts,Foton Spare Parts,Foton Truck Spare Parts,Foton Light Truck Spares

Jinane Baisheng International Trade Co.,Ltd , https://www.jnbisontruck.com