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    The Impact Of China's Textile And Clothing On European Exports

    2010/5/31 17:11:00 27

    Foreign Trade Ministry Of Commerce

       The European sovereign debt crisis will have more serious impact on China's foreign trade. It is expected that in the 5, June, and even the third quarter, the performance will be more obvious, and my export growth to Europe may be down by 6%~7%. "


    Huo Jianguo, President of the Ministry of Commerce, recently told reporters.


    In an interview, reporters found that, by the financial crisis, the textile enterprises that have yet to recover their vitality will again be hit by the European debt crisis. However, judging from the current situation, the market believes that this blow will not reduce the entire industry's exports to the level of early 2009.


    According to the latest data released by the Ministry of Commerce, in 2009, the total value of imports of textiles and raw materials from the 27 countries of the European Union decreased by 6.2% compared with the same period last year, but still reached 42 billion 832 million US dollars. China has become the largest source country of imported textiles and raw materials from the 27 countries of the European Union, and the amount of textiles and raw materials imported from China accounts for 41.1% of the total value of the EU's imports.


    The European and American markets have always been the largest export destination of China's textile and clothing industry. Data from the first textile network show that in recent years, the share of China's textile and clothing exports to Europe has been maintained at around 20% of the total volume.


    "In the entire industry's exports, orders settled in US dollars accounted for 70%, and euro settlement accounted for only 30%. In the textile and clothing exported to the EU, the average settlement in US dollars is 30%. " CIC securities analyst Kong Jun told reporters that from this level, the impact of the European debt crisis on export textile enterprises will not be as big as the US financial crisis happened.


    "Our products are exported to the European market, mainly based on US dollar settlement, and the amount of settlement in the euro is not large." Jia Xiaobin, deputy general manager of copper cattle group, told reporters.


    "Recently, I am super depressed. My clients are all those countries under the debt crisis: Spain and Portugal. Since March, we have no new orders. A foreign businessman complained.


    Many enterprises with competitive products began to prepare for possible shocks in the future. Jia Xiaobin told reporters that at present, the company is discussing with European customers the issue of product price increase.


    Wang Qian, chief analyst of the first textile network, thinks that the depreciation of the euro is on the one hand. Textile companies should pay more attention to the macroeconomic aspects of the European market, such as consumption rate, unemployment rate and so on. This year, the European market is weaker than the US. In the first quarter, the average increase in exports to Europe was 16.8%, 5 percentage points lower than that in the US market.


    At present, China's textile and clothing exports to Europe are mainly to Germany, France, Italy and other countries, and export enterprises worry that the European debt crisis will further spread to these countries in the future. According to the insiders, orders are most needed by enterprises, followed by cost pressures. Recently, there is news in the market that the national development and Reform Commission will issue about 1 million 100 thousand tons of cotton import quotas in the near future to ease the pressure of high domestic cotton prices.


    Jiang Xuan


    The European sovereign debt crisis will have more serious impact on China's foreign trade. It is expected that in the 5, June, and even the third quarter, the performance will be more obvious, and my export growth to Europe may be down by 6%~7%. " Huo Jianguo, President of the Ministry of Commerce, recently told reporters.


    In an interview, reporters found that, by the financial crisis, the textile enterprises that have yet to recover their vitality will again be hit by the European debt crisis. However, judging from the current situation, the market believes that this blow will not reduce the entire industry's exports to the level of early 2009.


    According to the latest data released by the Ministry of Commerce, in 2009, the total value of imports of textiles and raw materials from the 27 countries of the European Union decreased by 6.2% compared with the same period last year, but still reached 42 billion 832 million US dollars. China has become the largest source country of imported textiles and raw materials from the 27 countries of the European Union, and the amount of textiles and raw materials imported from China accounts for 41.1% of the total value of the EU's imports.


    The European and American markets have always been the largest export destination of China's textile and clothing industry. Data from the first textile network show that in recent years, the share of China's textile and clothing exports to Europe has been maintained at around 20% of the total volume.


    "In the entire industry's exports, orders settled in US dollars accounted for 70%, and euro settlement accounted for only 30%. In the textile and clothing exported to the EU, the average settlement in US dollars is 30%. " CIC securities analyst Kong Jun told reporters that from this level, the impact of the European debt crisis on export textile enterprises will not be as big as the US financial crisis happened. {page_break}


    "Our products are exported to the European market, mainly based on US dollar settlement, and the amount of settlement in the euro is not large." Jia Xiaobin, deputy general manager of copper cattle group, told reporters.


    "Recently, I am super depressed. My clients are all those countries under the debt crisis: Spain and Portugal. Since March, we have no new orders. A foreign businessman complained.


    Many enterprises with competitive products began to prepare for possible shocks in the future. Jia Xiaobin told reporters that at present, the company is discussing with European customers the issue of product price increase.


    Wang Qian, chief analyst of the first textile network, thinks that the depreciation of the euro is on the one hand. Textile companies should pay more attention to the macroeconomic aspects of the European market, such as consumption rate, unemployment rate and so on. This year, the European market is weaker than the US. In the first quarter, the average increase in exports to Europe was 16.8%, 5 percentage points lower than that in the US market.


    At present, China's textile and clothing exports to Europe are mainly to Germany, France, Italy and other countries, and export enterprises worry that the European debt crisis will further spread to these countries in the future. According to the insiders, orders are most needed by enterprises, followed by cost pressures.


       Recently, there is news in the market that the national development and Reform Commission will issue about 1 million 100 thousand tons of cotton import quotas in the near future to ease the pressure of high domestic cotton prices.

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