Foreign traders, please check: Review and Outlook of One Week's Hot News (6.3-6.7)

01 Industry News

China Council for the Promotion of International Trade: 81.6% of foreign trade enterprises predict that their exports will improve or remain stable in the first half of the year

The China Council for the Promotion of International Trade held a monthly press conference on May 30th. A spokesperson for the China Council for the Promotion of International Trade stated that according to recent research conducted by the China Council for the Promotion of International Trade, 81.6% of foreign trade enterprises predict that their exports will improve or remain stable in the first half of the year.
Source: Caixin News Agency

Over the past 20 years, the trade in goods between China and the Arab League has grown by over 8 times

2024 marks the 20th anniversary of the establishment of the China Arab States Cooperation Forum. Since the first China Arab Summit, China Arab economic and trade cooperation has achieved fruitful results. According to customs statistics, in the past 20 years, China's imports and exports to the Arab League have increased significantly from RMB 303.81 billion in 2004 by 820.9% to RMB 2.8 trillion in 2023. In the first four months of this year, my imports and exports to the Arab League reached a record high of 946.17 billion yuan, with a year-on-year increase of 3.8%, accounting for 6.9% of my total foreign trade value. Among them, exports reached 459.11 billion yuan, an increase of 14.5%; Imports amounted to 487.06 billion yuan, a decrease of 4.7%.
Source: Caixin News Agency

Port containers are in short supply, and enterprises are rushing to grab empty containers and purchase self owned containers

According to data from the Shanghai Shipping Exchange, the Shanghai Export Container Settlement Freight Index, which reflects actual freight costs, has risen by over 50% in the past month. Due to tight transportation capacity and rising freight rates, in addition to rushing to grab empty containers, some companies have also begun to purchase their own containers to cope with the shortage situation. It is understood that the tight supply of containers is mainly related to the increased demand for containers caused by the situation in the Red Sea, such as vessel diversion, delays, and the launch of a large number of new ships. In order to meet the shipping needs of foreign trade enterprises and improve container utilization efficiency, some shipping companies have shortened the time for extracting empty containers from 48 to 72 hours to 24 hours. In addition, customs and other departments are constantly improving the speed of empty container inspection and release. Enterprises can use the "ship side direct delivery" model to quickly handle empty container clearance procedures.
Source: CCTV Finance

Ross Stores has seen steady growth in performance, with home goods sales exceeding expectations and actively seeking more brand collaborations

In the recently released first quarter financial report of this fiscal year, Ross Stores Inc. showed robust performance and revealed that the company is expanding its supply and actively seeking cooperation with more cost-effective brands to further enhance its profit margin. In the first quarter ending May 4th, Ross Stores achieved sales of $4.9 billion, an 8% increase, which is comparable to a 3% increase in same store sales. This quarter's sales growth is mainly due to a significant increase in store foot traffic, while the average customer spending has also slightly increased. Among numerous product categories, jewelry and children's products have become the most popular among consumers, and the performance of home products has also exceeded the company's expectations.
Source: Today's Home Textile

The United States extends the tariff exemption period for some Chinese textiles, including household textiles

Before the tariff exemption is about to expire, the Office of the United States Trade Representative (USTR) has decided to extend the tariff exemption period for some household textiles manufactured in China.
Robert "Bob" Leo, legal advisor to the Home Fashion Products Association (HFPA) in the United States, stated that the original tariff exemption was scheduled to expire on May 31 this year. The tariff exemption for the following categories of Chinese made home textile related products has been extended until May 31, 2025:
Feather
Down
Pillow shells of cotton, filled with goose or duck down
Protective cotton encasements for pillows
Certain lotion dispensers weighing less than 3 kg.
Certain silk fabrics
Certain long pile knit fabric
Leo specifically pointed out in his memorandum to HFPA members that approximately 60% of the product categories on the original exemption list have not been granted exemption extensions, including certain specific fabrics and yarns that will no longer be eligible for exemption after June 14, 2024 Eastern Time in the United States. He suggested searching for the tariff code (HTS code) as soon as possible to determine if the product is listed in Annex C or D.
The Office of the United States Trade Representative released a complete list on May 24th (Friday), detailing which products will continue to enjoy tariff exemptions and which will no longer. This list includes various products including water purifiers, garage door opening devices, and electrolytic capacitors.
Source: Today's Home Textile

From January to April, China's cumulative exports of textile and clothing reached 89.844 billion US dollars

According to Chinese customs data compiled by the China Textile Import and Export Chamber of Commerce, from January to April 2024, China's cumulative exports of textile and clothing reached 89.844 billion US dollars, a year-on-year increase of 0.3%. Zhejiang Province, Jiangsu Province, Guangdong Province, Shandong Province, and Fujian Province are among the top five provinces and cities for textile and clothing exports in China, with a total proportion exceeding 70%.
Source: Caixin News Agency
Zhejiang Ningbo furniture exports increased by 25.5% from January to April
According to statistics from Ningbo Customs, the export of furniture and its parts in Ningbo from January to April was 9.27 billion yuan, an increase of 25.5% compared to the same period last year. Private enterprises are the main export enterprises, with exports of 8.29 billion yuan, an increase of 26.1%, accounting for 89.4% of the total export of furniture and its parts in Ningbo City during the same period. The United States and the European Union are the main export markets, with exports of 3.33 billion yuan and 2.64 billion yuan respectively, an increase of 13% and 42.9%, accounting for a total of 64.4% of Ningbo's furniture and parts exports during the same period. Exports to the UK, ASEAN, and Canada have grown rapidly, with growth rates of 36.4%, 45.1%, and 32%, respectively.
Source: Today's Home Furnishings
Statistics of household textile imports in the United States in the first quarter: quantity increases, value decreases
According to Otexa's statistics on the main home textile products imported into the United States in the first quarter of this year, three categories of cotton bed sheets, synthetic fiber bed sheets, cotton bed covers and blankets, and cotton towels imported from the United States saw significant increases in import quantities.
From January to March, the import volume of artificial fiber bed sheets in the United States increased the most. In terms of US dollar value, imports in this category increased by 19%, while in terms of volume, they increased by nearly 22%. China remains the main source of artificial fiber bed sheets, accounting for over 90% of the US import share.
Although India still holds a leading position among the source countries supplying cotton bed sheets to the US market, import data shows that the relationship between the top three bed sheet suppliers is more balanced. Products from India, Pakistan, and China accounted for 94% of the total cotton bed sheets imported into the United States in the first quarter.
Cotton bed covers and blankets, the volume of imported goods from the United States in the first quarter increased by 22.39%. However, according to the value of imported goods, the category of goods actually decreased by -0.19%. According to cargo volume statistics, Pakistan holds the largest share. According to the value of goods in US dollars, China still holds the top position. Display the difference in positioning of goods from two sources in the US market.
In the first quarter, the import volume of cotton loop towels and other plush towels from the United States remained relatively stable, but the value of goods in US dollars decreased by 6%. The value and volume of this category of goods imported from China have increased by nearly 10%, with the largest increase among the four major suppliers of China, India, Pakistan and Türkiye.
Source: Today's Home Textile

02 Important Events

The IMF has raised its forecast for China's economic growth this year to 5%

Recently, the International Monetary Fund raised its forecast for China's economic growth, with growth rates expected to be 5% and 4.5% in 2024 and 2025, respectively, an increase of 0.4 percentage points from the forecast in April. Today, Steven Barnett, the Chief Representative of the International Monetary Fund in China, revealed that "the upward adjustment of the forecast is mainly due to the increase in the proportion of China's consumption growth in the first quarter." Considering the improvement of China's total factor productivity, better utilization of capital and labor to enhance productivity, and an increase in per capita productivity. In the long run, allowing the market to play a role in resource allocation, creating a fair environment and platform for state-owned and private enterprises, under these policies, China's economic development still has resilience.
Source: Caixin News Agency

In 24 years, the French President visited Germany for the first time and signed multiple agreements

French President Macron met with German Chancellor Scholz in Berlin on May 28th local time. In addition, the two sides held ministerial level consultations and discussed topics such as promoting EU economic growth, enhancing competitiveness, increasing armaments, and maintaining security. During this visit, France and Germany signed multiple agreements to expand their cooperation in the field of technology. During his visit, Macron called on the European Union to streamline processes, accelerate actions, and increase investment, establish joint armed forces in security and defense, and work together to address climate crises, develop future technologies, and artificial intelligence, rather than acting alone. From May 26th to 28th local time, French President Macron made an official state visit to Germany. This is also the first official state visit by a French president to Germany in 24 years.
Source: Global Market Intelligence

34 felony charges established Trump as the first former US president convicted

On May 30th local time, the jury members responsible for the "sealing fee" case of former US President Trump made a ruling, sentencing Trump to all 34 felony charges of forging business records in this case. New York state prosecutors have accused Trump of entrusting Cohen to pay $130000 in a "sealing fee" to the sex star Daniels (real name Stephanie Clifford) during his 2016 presidential campaign, in order to prevent the latter from claiming that the 2006 scandal involving romance with Trump would affect the election process; Trump subsequently forged business records and returned Cohen's advance payments in installments under the guise of "lawyer fees" to cover up his violation of New York State and federal election regulations. According to previous reports, the jury must make a unanimous decision in this case.
Source: Global Market Intelligence

Top 10 companies with the highest global R&D spending in the past year

According to statistics from the data platform Quartr, as of May 2024, the top ten companies in the world that have invested the most in research and development spending in the past year are Amazon, Google's parent company Alphabet, Meta, Apple, Merck, Microsoft, Huawei, Bristol&Myrtle, Samsung, and Dazhong. Among them, Amazon's research and development expenditure reached an astonishing $85.2 billion, almost the sum of Google and Meta. Among the ten companies mentioned above, 6 are American companies, 2 are German companies, and China and South Korea each have one company shortlisted.
Source: Caixin News Agency

The total export value of Vietnamese goods is expected to reach 370 billion US dollars in 2024

According to the latest statistics from the General Administration of Customs of Vietnam, from the beginning of 2024 to May 15, the total export value of Vietnamese goods reached 138.59 billion US dollars, an increase of 16.1% compared to the same period in 2023 (equivalent to an increase of 19.17 billion US dollars). The commodity categories with a significant increase in export value include: computer, electronic products, and component exports increased by 6.16 billion US dollars (equivalent to a growth of 34.3%); Mechanical equipment, tools, and accessories increased by $1.87 billion (an increase of 12.8%); Various types of mobile phones and components increased by 1.45 billion US dollars (an increase of 7.9%); Cameras, cameras, and components increased by $1.27 billion (64.6% growth). According to the above data, the average monthly export value of Vietnamese goods reaches 30.8 billion US dollars. If this level is maintained, Vietnam's total commodity exports for the whole year of 2024 will reach 370 billion US dollars.
Source: Global Market Intelligence

Federal Reserve's Brown Book: National Economic Activity Continues to Expand, but Companies are becoming increasingly pessimistic about the Outlook

On Wednesday Eastern Time, the Federal Reserve released the Brown Book on Economic Conditions. The report shows that economic activity in the United States continued to expand from early April to mid May, but pessimism among businesses about the future has intensified. Due to weak consumer demand and mild inflation, Federal Reserve officials are currently considering how long it will take to lower interest rates. The Dallas Fed pointed out that the weakening of consumer demand is a persistent concern for many businesses, and the escalating Middle East conflict and global geopolitical tensions are also considered downside risks.
Source: Global Market Intelligence

OpenAI announces the launch of next-generation cutting-edge model training

On Tuesday local time, OpenAI announced that the board of directors had established a security committee responsible for overseeing the direction of AI development. Under this seemingly ordinary announcement title, there is also a heavyweight message hidden - the rumored "GPT-5" has already started! OpenAI stated in its announcement that it has started training the company's "next-generation cutting-edge models" in recent days, and it is expected that this new system will reach the "next level of capability" towards AGI (General Artificial Intelligence).
Source: Science and Technology Innovation Daily

XAI completes $6 billion financing or builds a supercomputing factory

Musk's artificial intelligence startup xAI announced that the company has received $6 billion in financing, making it one of the largest venture capital investments since its establishment. This may help Musk start catching up with ChatGPT manufacturer OpenAI, who was also a co-founder and later left the company due to a litigation dispute. Investors in xAI such as Andreessen Horowitz and Sequoia Capital also support OpenAI. Musk stated that the current valuation of xAI is $24 billion. XAI did not disclose where the new funds will be used, but according to A recent report by The Information, the company plans to build a large new supercomputer - the "supercomputing factory" - which may collaborate with Oracle.
Source: Science and Technology Innovation Board Daily

03 Important event reminder for next week

Global News for a Week

Monday (June 3rd): China's May Caixin Manufacturing PMI, Eurozone May Manufacturing PMI final value, UK May Manufacturing PMI, US May ISM Manufacturing PMI, and US April construction expenditure monthly rate.
Tuesday (June 4th): Switzerland's May CPI monthly rate, Germany's May adjusted unemployment rate, Germany's May adjusted unemployment rate, US April JOLTs job vacancies, and US April factory order monthly rate.
Wednesday (June 5th): US API crude oil inventory for the week ending May 31st, Australia's Q1 GDP annual rate, China's May Caixin Service PMI, Eurozone May Service PMI final value, Eurozone April PPI monthly rate, US May ADP employment, Canada's June 5th central bank rate decision, US May ISM non manufacturing PMI.
Thursday (June 6th): Eurozone April retail sales rate, number of challenger company layoffs in the United States in May, Eurozone to June 6th European Central Bank's main refinancing rate, ECB President Lagarde's monetary policy press conference, number of initial jobless claims in the United States for the week ending June 1st, and US April trade account.
Friday (June 7th): China's May trade account, China's May trade account calculated in US dollars, Germany's April quarter adjusted trade account, UK's May Halifax quarter adjusted housing price index monthly rate, France's April trade account, China's May foreign exchange reserves, Eurozone's first quarter GDP annual rate final value, Canada's May employment, US May unemployment rate, US May quarter adjusted non-farm employment, and Russia's central bank announcing interest rate decisions.

Important global conferences

2024 Mexico Hardware Exhibition Expo

Host: Reed Exhibitions
Time: September 5th to September 7th, 2024
Exhibition location: Guadalajara Convention and Exhibition Center
Suggestion: The Expo Nacional Ferretra, organized by the Mexican government and Reed Exhibitions, will be held from September 5th to September 7th, 2024 at the Mexico Guadalajara Convention and Exhibition Center. The exhibition will be held once a year. The Expo Nacional Ferretera is of decisive significance for the development and integration of the hardware, construction, electrical, and industrial safety industries in Mexico, Central and South America, as it is a necessary place for manufacturers, distributors, and buyers to establish business networks, and foreign traders in related industries are worth paying attention to.
2024 Berlin Consumer Electronics Exhibition, IFA2024

Host: German Association of Entertainment and Electronic Communications Industries
Time: September 6th to September 10th, 2024
Exhibition location: Berlin International Exhibition Center, Germany
Suggestion: IFA is one of the most important international exhibitions in the field of consumer electronics, communication, and information technology products in Europe and globally. It provides the best opportunity and ideal venue for electronic consumer goods sellers and buyers in Europe and globally to gather and showcase new products. It has the characteristics of large scale, long history, and extensive influence. The previous exhibition achieved great success once again, with 1939 participating companies from 100 countries and regions around the world participating in the exhibition. The total area of the exhibition exceeds 159000 square meters, and the number of visitors to the exhibition exceeds 238303. As a result, the number of international participants at the IFA exhibition reached a historic high. The majority of attendees at the exhibition come from industry decision-makers in Germany or abroad, with 50% of visitors coming from outside Germany. Foreign trade professionals in related industries are worth paying attention to.

Major global festivals

June 5th (Wednesday) Israel - Pentecost
Pentecost (translated by the Catholic Church as Pentecost) originates from one of the three major festivals of the Jewish people, the Feast of Pentecost. Judaism observes festivals according to the Jewish calendar, commemorating the 50th day after the Israelites left Egypt. This festival is a commemorative day of thanksgiving to the law, and is also used to thank the Lord for the harvest, so it is also known as the Harvest Festival, which is one of the three major festivals of the Jewish people.
Suggestion: Understanding is sufficient.

June 6th (Thursday) Sweden - National Day
On June 6, 1809, Sweden passed its first modern constitution. In 1983, the parliament officially declared June 6th as Sweden's National Day.
Activity: On Switzerland's National Day, the Swedish flag is hung all over the country. On that day, members of the Swedish royal family will move from the Stockholm Palace to Scandinavia, where the queen and princess will receive flowers from the blessed ones.
Suggestion: Confirm your vacation and wish in advance.