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Foreign trade data were released in August, and export growth fell back
Exports in August (in US dollars) rose 7.1% year on year, versus 18% last month; with a trade surplus of $79.39 billion, versus $101.26 billion last month.
Specifically, external demand is weak due to international geopolitical factors, the overseas economic slowdown, and the blocked energy supply chains in some parts of Europe. Plastic Hoods, 4 pin round connector and pcb terminal block connector should be noted.
The US Markit manufacturing PMI fell 0.7 percentage points to 51.5%; the eurozone manufacturing PMI was 49.6% and the German manufacturing PMI was 49.1% contraction for two consecutive months; and the Japan manufacturing PMI fell to 51.0%.
By region, exports to major trading partners showed a significant decline compared with the previous month, and the EU overtook the US as the largest export partner in August. Specifically, exports to the European Union, the United States, ASEAN, Japan and South Korea were-3.8%, -9.6%, -7.1%, -5.5% and-3.0%, respectively.
By product, high-tech manufacturing exports fell slightly from last month. In August, electromechanical and high-tech products were 4.3%, -3.9%, changing-8.7 and-6.3 percentage points from the previous month; labor-intensive products were 2.0% year-on- -6.4%, including bags, toys, furniture and 24.0%, 2.2% and-12.7%. In addition, the overseas epidemic situation improved, and the export of epidemic prevention materials fell from the high level. The export of medical instruments and devices was-9.6% year-on-year and-0.2% month-on-month, with a two-year compound growth rate of 3.2%.
On August 24, the national regular session deployed 19 policies to stabilize the economic continuity, and introduced measures to “support the economic development of private enterprises and platforms”. Look forward to more relay policies later.
exchange rate
The central bank cut the foreign exchange deposit reserve requirement ratio by 2 percentage points
On September 5, the yuan’s spot exchange rate opened at 6.9155, falling further below the 6.94 mark in the afternoon, the lowest since August 2020.
On the afternoon of September 5, the central bank released news that since September 15,2022, the foreign exchange reserve ratio by 2 percentage points, that is, the foreign exchange reserve ratio from the current 8% to 6%, releasing foreign exchange liquidity, this is the second time this year.
On the evening of April 25, the central bank announced that it would cut the reserve requirement ratio for financial institutions from 9% to 8% starting from May 15, the first cut in history.
Experts said that the reduction in the reserve reserve ratio for financial institutions means that domestic financial institutions will reduce the reserve ratio for foreign exchange deposits, which will help increase the liquidity of the US dollar in the market and improve the ability of financial institutions to use foreign exchange funds, which is conducive to the stability of the RMB exchange rate.
At present, affected by the Federal Reserve accelerated monetary policy tightening, the DOLLAR index once broke through the 110 mark, triggering a passive depreciation of the RMB against the US dollar. The central bank’s move has sent a positive signal to the market, which will help stabilize the RMB exchange rate expectations and avoid irrational overshoot.
sea transportation
Container shipments accelerated this week, falling more than 60 per cent this year
Container freight rates continued to fall and fell sharply in the latest week, driven by high inflation, excess inventories and rising cost of living hampering consumer demand and excess capacity.
The Ningbo export container freight index released by the Ningbo Shipping Exchange fell 10 percent from the previous week, while 16 out of the 21 routes fell.
For North American routes, Ningbo Shipping Exchange reported that the market continued to be weak, the American east, the west American route freight index month-on-month decline is the largest value this year. Among them, the spot market booking price of the Western American route has fallen below $4,000 / FEU. The freight index fell 4.6% from the previous week, and the freight index fell 16.3% from the previous week.
Shipping on a 40-foot container from China to the west coast of the United States is now about $4,800 a box, down more than 60 percent from January, according to the FBX index released by the Baltic Shipping Exchange. Container freight rates from China to Northern Europe also fell to $9,100, about 40 percent lower than at the beginning of the year.
According to the Drury World Container Index, Shanghai-Los Angeles spot rates fell 9% to $565 to $5,562 / FEU, and Shanghai-New York spot rates fell 3% to $9,304 / FEU.
The next question is, how much will freight rates fall?
Macao SAR
Macao will ban the import of non-biodegradable disposable tableware from next year
The Macao SAR government announced that it will ban the import of non-biodegradable disposable plastic knives, forks and spoons from January 1 next year, which is to tighten and implement plastic reduction measures after banning the import and transfer of non-biodegradable plastic disposable catering straws and beverage mixing bars this year.
The Macao government said, earlier this year launched limit non-biodegradable plastic disposable catering straw and beverage mixing bar, the comprehensive analysis of the actual situation of Macao and reference experience in other regions, and communicate with relevant chamber of commerce and industry and listen to opinions, the SAR government according to the foreign trade law regulation, prohibit non-biodegradable disposable plastic knife, fork, spoon import. Will take effect on January 1,2023.
Since the entry of law in 2019, free plastic bags in retail activities; import and transfer of biodegradable plastic products, disposable foam tableware from 2020, including boxes, bowls, cups and dishes, this year, and will be extended to plastic knives, forks and spoons next year.
Britain
Britain’s second largest port is shut down! A two-week general strike began on September 19th
Docworkers at Liverpool Harbour face a two-week general strike starting September 19 after rejecting management proposals for the latest contract renewal.
The United Trade Union has confirmed that more than 560 port operators and maintenance engineers will go on strike at the Port of Liverpool from 06:00 Monday 19 September (local time) to 06:00 Monday 3 October.
The union claimed that the MDHC (container port operator) had failed to meet multiple commitments under the 2021 pay agreement. This included the first compensation assessment in 27 years. Workers were firm, and Union union Unite warned that more strikes would be scheduled in the coming weeks if the MDHC did not make acceptable proposals to workers.
‘It was a long strike, and since we have a considerable amount of goods in and out, we will try to get a solution.’”
Egypt
Egypt has eased some import restrictions
The Egyptian government has approved a special package of measures, effective in the coming days, given the continuing impact of the international economic crisis, the Al-Ahram reported. These include the easing of some import restrictions and the lowering of import tariffs on about 150 imports.
At that time, goods that have completed customs clearance will be allowed, investors and importers who fail to complete customs procedures due to a letter of credit will be exempted from paying fines, and food goods and other goods will be allowed to stay at customs from one month to four months and six months respectively.
According to Egypt’s Enterprise newspaper, importers have been long expecting the policy. Due to the shortage of foreign exchange and the implementation of letter of credit policies, Egyptian importers face many difficulties in obtaining raw materials and finished products, and some factories have completely or basically stopped production.
In practice, after the importer pays various customs clearance fees, the importer shall submit “Form 4″ (Form 4) to the bank to obtain the letter of credit, but it takes a long time to obtain the letter of credit. After the new policy is implemented, the bank will issue a temporary statement for the importer to prove that Form 4 is being processed, and the customs will clear the customs accordingly and will coordinate directly with the bank to accept the letter of credit later.
Since 2013, China has been Egypt’s largest trading partner. Those with some Egyptian customers are aware of the policy changes.
Cameroon
Cameroon requires tax registration for all economic transactions from 2023
The website Investment in Cameroon website reports that the presidential decree signed on August 23 on preparing the 2023 national budget provides for “extending unique identifiers to all economic transactions.”This means that the next financial law should stipulate that all economic transactions be registered in the tax registry.
Currently, this obligation is the only required for these services: opening accounts with banks and microfinance institutions; signing insurance contracts; signing connections to water and electricity networks; land registration and licensing for regulated professions (notaries, lawyers, bailiff, etc.).
A large part of its economic activities remain informal, and dealers (Buyam Sellam) in the living market lack tax registration signs. With the promotion of this rule, the number of regular taxpayers will increase substantially.
Russia
Russia: has started cross-border remittance business to China
The bank is the first Russian bank to launch the cross-border RMB remittance business to China. “The new service can be remitted to China according to the elements of the bank bills, and the first phase of the business is only open to legal persons.”According to the notice, rFTC customers can use the China remittance service through remote operation or counter processing, and the funds will arrive at the accounts of the Chinese recipients within five days.
Tofi said it plans to quadruple the size of its cross-border business by 2023.