Financial crisis make the Europe and the United States in an economic recession period, causing consumer confidence index falling and unemployment rising, and resulting a rapidly declining of markets. Foreign credit crunch has led some highly dependent on bank financing businesses to be in financial difficulties in operating and financing costs, and the amount of financing is also difficult to meet the needs of the ordinary course of business, resulting in cash flow difficulties. Their debt burden to China's textile export enterprises, which will result our business can’t recover the purchase price, the number of bad debts and the credit risk of foreign trade sharp increase. Financial crisis have the international trade to a further contraction, exacerbating the fierce competition in the international market. Europe and the United States will adopt more conservative policies and measures in trade, the global scope of the threat of trade protectionism will be further increased, forming the new trade barriers.
The financial crisis takes the textile enterprises of Zhejiang into financial straits. Textile enterprises in our province lags behind the technology, production and operation costs are relatively high, the core competitiveness and risk-resisting ability that is why to be in this situation. What can we do? We should actively open up new markets, effectively avoid risks; establish good risk prevention and control mechanisms and receivables system to effectively prevent risks; and continuous self-innovation to be effectively warded off risks.
KEYWORDS：European and American markets, Trade barriers, Foreign Exchange Risk, The Added Value，financial crisis
