Textile Exports Slowed Down And Trade Barriers Increased.

Affected by the US market shrinkage and domestic tightening policy, the growth rate of textile and garment exports has slowed down significantly.

The risk of trade barriers in the future will be further increased.

In April 20th, the 103rd China Import and Export Fair (hereinafter referred to as the Canton Fair) ended in Guangzhou.

Compared with previous years, textile and garment enterprises obviously felt the "ice and fire".

According to the general assembly data, the turnover of traditional export commodity textiles and garments (including garments and accessories, textile yarns, fabrics and articles) decreased significantly compared with the same period last autumn.

On the two day before the opening, the turnover of two categories of textile yarn, fabric and products decreased by 6% and 24.4% respectively compared with the previous one.

The statistics provided by the first textile network also showed that China's textile industry lost 4 billion 867 million yuan from 1 to February in 2008, a loss of 1 billion 319 million yuan over the same period last year.

Among them, the cotton textile enterprises are "the hardest hit areas" with a total loss of 1 billion 524 million yuan.

Fan Min, chief analyst of the first textile network, believes that although the world's demand for Chinese textiles is still there, under the influence of many factors, the survival environment of Chinese textile enterprises is becoming increasingly grim, and the slowdown in export growth is inevitable.

He estimated that China's textile and garment exports almost impossible to achieve more than 20% growth last year, and estimated that it could only maintain about 10% growth.

The textile and garment industry is a traditional labor-intensive industry with an average profit margin of only about 4%.

Since 2007, the profit of the only industry has almost been offset by factors such as the sharp rise in labor costs, the acceleration of RMB appreciation and the reduction of export tax rebates.

Wu Di, deputy director of the China Textile Economic Research Center, said that in mid March, the China Textile Industry Association had visited textile enterprises in Guangdong, Zhejiang and other places, and many enterprises reflected that the banks had generally approved the loan projects for textile enterprises.

In some areas, textile industry is considered to be a low technology level and low added value industry. It is generally not permitted for textile enterprises to apply for loans.

The vice president of a clothing listed company said that many export processing enterprises in Guangdong had low profit margins due to their small size and no cost advantage, and the processing fees were offset by the appreciation of the renminbi.

In this competition, small businesses are most unable to bear pressure, only to face the situation of bankruptcy.

Fan Min believes that last year's impact on the external environment is mainly small businesses. This year, about 90% of enterprises are faced with the problem of "how to live".

Large and medium-sized textile enterprises also need to adjust their proprietary business and export business structure.

It is worth noting that by the US subprime crisis, China's textile exports to the United States have been on a downward trend since the end of 2007.

According to the research data provided by the first textile network, China's textile exports to the United States decreased by 5.85% and 23.97% respectively from 11 to December in 2007.

The US market is shrinking.

The latest figures released by the General Administration of Customs show that between 1 and February this year, China exported $3 billion 460 million to the US textile and clothing industry, down 7.5% from the same period last year.

Hongkong, as an important pit point for the export of textiles and clothing to the mainland, has also slowed down its textile exports to the mainland.

According to statistics from the General Administration of customs, from the 1 to February, the mainland exported $2 billion 110 million to Hongkong's textile and clothing, down 14.7% from the same period last year.

A textile industry insider said that the impact of the US economic slowdown on China's textile exports will continue to magnify, and the lag effect will gradually appear.

The United States, the European Union and Japan are China's three largest trading partners.

In 2007, China's textile exports accounted for about 15% of the total textile exports.

Since January 1, 2008, the EU has abolished 10 categories of textile quotas imported from China, and China has resumed growth in textile exports to the EU.

Customs statistics show that from 1 to February, China exported $5 billion 990 million to EU textile and clothing, a significant increase of 27% over the same period last year.

However, the General Administration of Customs analysis pointed out that the abolition of the EU export quotas may also trigger a new round of export climax.

If it does not take the initiative to set limits, once there is a "blowout" phenomenon, it is likely that the other side will start anti-dumping, countervailing, special safeguard and other restrictive measures, and there is a certain risk of trade barriers.

Before that, WTO members set special safeguards for Chinese textiles.

According to the rule, from 2005 to 2008, if China's textile exports disturb the market of WTO members, the member may temporarily impose restrictions, but it can only be used once in four years, and can last for only one year at a time.

On April 9th, Vice Minister of Commerce Gao Hucheng reminded textile enterprises in the "2008 international trade situation analysis conference", which is about to expire at the end of 2008.

After that, all bilateral arrangements surrounding textiles will be concluded. The textile industry will, like other industries, face anti-dumping, countervailing and other restrictions.

The export situation faced by Chinese textile enterprises will be more severe.