Textile Trade In Zhejiang Under Major Changes

In the past 3 years, the textile trade has undergone great changes.

Nevertheless, Zhejiang exerts its comparative advantages to overcome various pressures and difficulties and maintain a good momentum of development in textile trade.

In 2008, textile trade is facing new opportunities and challenges.

We should actively adapt to the new changes in the international trade environment and terms of trade, work hard in changing the mode of foreign trade growth, enhance international competitiveness and achieve sound and rapid development of textile trade. Zhejiang is the major textile production and export base in the country, and the textile trade is of great importance to the economic and social development of the province.

Since 2005, the textile trade in the whole province has been growing steadily and rapidly, taking advantage of the favorable conditions for the smooth pition of the textile trade integration and overcoming the unfavorable factors such as the restrictions imposed by Europe and the United States and the changes in the trade policy.

In the face of the coming out of the Sino EU agreement and the only one year remaining in the Sino US agreement, textile trade will face new challenges.

To create a stable and favorable international trade environment and speed up the pformation of the growth mode of foreign trade is a strategic choice for further development of textile trade.

In the past 3 years, textile trade has undergone significant changes since 2005.

Textile industry is facing unprecedented challenges due to dramatic changes in the trading environment and frequent adjustment of trade policies.

(1) integration of textile trade has entered a new pitional period.

According to the agreement on textiles and clothing, the global textile trade began to integrate in 2005.

With the abolition of textile quotas, China's long suppressed textile growth potential has been released rapidly.

As China's textile exports soared in the short term, the European Union and other countries adopted special safeguards and other restrictions.

Since April 4th of that year, the United States has implemented a temporary quota system for the 10 categories of textiles exported to the United States. In April 6th, the European Union issued the "special safeguard action guide", which in disguise put forward the requirement of China's self handicapping of textiles.

After hard negotiations, the Chinese government signed a bilateral agreement on textile trade with Europe and the United States, and exported textiles from Europe and America to re implement quota management.

China and Europe signed the memorandum of understanding on textile trade, stipulating the implementation of quantitative restrictions on the 10 categories of textiles exported to China, and decided that the EU will fully open the textile market to China in 2008. The memorandum of understanding signed between China and the United States on textiles and clothing trade will impose quantitative management on the 21 categories of textiles exported to China by the United States, and the termination period will be 2008.

The signing of the agreement between China and Europe marks the smooth pition of the global textile trade integration.

The limited number of textiles has been traded for the free trade of most textiles in exchange for the European and American commitments to restrain textiles from using special restrictions.

(two) the Chinese government has substantially adjusted its textile trade policy.

According to the central European and US China Agreement, the Chinese government has adopted quota management measures for the 31 categories of textiles exported to Europe and the United States.

The quota allocation method is stipulated.

In 2005, the quota of textile exports to Europe was allocated according to the export performance of enterprises.

In 2006, the quota of textiles exported to Europe and the United States was allocated by 70% in accordance with export performance and 30% public bidding, allowing quota pfer. There were two performance based distribution and two tendering.

In 2007, the quota category allocated by performance changed from the original 31 to 18, and the other 13 categories were all involved in the tender agreement. Three times were allocated according to the performance and three times the agreement was tendered.

In order to avoid the flow of textile export quotas, the quota circulation has been limited by quantity since November 1, 2007.

In the past two years, the state has lowered the tax rebate rate of textile exports for the two time.

In September 2006, the export tax rebate rate adjustment covers more than 10 main sub sectors, including cotton spinning, chemical fiber, silk, wool spinning and knitting, including some textile chemical fiber raw materials and yarn, fabrics and textile finished products, and the export tax rebate rate is reduced by 2 percentage points.

Since July 1, 2007, the export rebate rate of garments and viscose fiber products has been reduced by 2 and 6 percentage points respectively.

The state also limits the textile processing trade to a certain extent.

From August 23, 2007 onwards, the new batch enterprises in the eastern region are no longer allowed to engage in restricted commodity processing trade.

In September, processing trade enterprises were allowed to pay deposit accounts in cash, guarantee and guarantee.

Two. In the past three years, textile exports grew well. The signing of the agreement between China and Europe and the United States and China, although the quota management system was re implemented, created a stable and predictable trade environment.

Since 2005, Zhejiang has made full use of this trade environment, exerting its comparative advantages, working hard to overcome various pressures and difficulties, and maintaining the good momentum of development of textile trade.

(1) stable and rapid growth of textile exports.

Statistics Bureau data show: in 2005 and 2006, the export value of textile products above the province scale (including clothing and chemical fiber) enterprises were 156 billion 370 million yuan and 181 billion 370 million yuan, respectively, up 20.8% and 14.9%; in 2007 2007, the delivery value was 148 billion 660 million yuan, an increase of 15.4%.

Customs data showed that the export volume of textiles (including garments, the same below) in 2005 was 24 billion 440 million US dollars and 29 billion 720 million US dollars in 2006, up 24.3% and 21.6% respectively; in 2007, the export volume was 23 billion 70 million yuan, an increase of 20.1%.

The textile industry still shows the pillar position of the province's exports.

In 2005 and 2006, textile enterprises accounted for 26.4% and 24.1% of the export value of Enterprises above Designated Size respectively.

In the past three years, the growth rate of textile exports in Zhejiang was higher than the national average level. In 2005, textile exports ranked first in the country, ranking second in the past two years.

The export structure of textile industry has changed positively.

Three industries: the chemical fiber manufacturing industry grew rapidly, the export delivery value in 2005 and 2006 increased by 81.7% and 39.8% respectively, and in 2007 1-9, the growth rate was 79.1%; the proportion of the export value of the enterprises above designated size increased from 0.29% in 2004 to 0.85% at the end of 2007 three quarter.

The growth rate of textile, clothing, footwear and hat manufacturing and textile industry is relatively stable, but the annual growth rate of the former is 3 to 4 percentage points higher than that of the latter.

From this, we can see that the processing depth of textile industry is steadily improving, from primary products to deep-processing products, and from general textile fabrics to new fiber materials.

(two) textile quota quotas are among the leading in the country.

The steady and fast growth of textile trade is based on the comparative advantage of regional industries and is based on more quota allocation.

In the past three years, the number and total number of enterprises that have obtained quotas in Zhejiang have been ranked first or second in the whole country.

For example, when the 21 categories of textiles exported to the United States were allocated for the first time in 2006, the total quota in Zhejiang ranked first in the country, with fabric quotas and clothing quotas accounting for 33% and 20% of the total respectively.

The first bid for export volume of textiles exported to Europe, 609 enterprises in Zhejiang won the bid, accounting for 18% of the total number of successful bid in the country, and the quota allocation accounted for 30.8% of the country's total.

In 2007, European and American textile quotas were invited, and the number of successful companies in Zhejiang still stayed ahead.

Bidding for the first agreement, Zhejiang winning 905 enterprises, accounting for 21.6% of the total number of the country, ranking second in the country.

Two quota quotas were allocated to Europe and the United States, and 791 enterprises in Zhejiang received quotas, accounting for 25.4% of the total number of the country, ranking the first in the country.

Bidding for the second agreement on textiles export to the United States, 1084 successful companies in Zhejiang accounted for 26.5% of the total number of the country, ranking second in the country.

The third agreement was awarded for the export of European textiles, and 567 of the successful companies in Zhejiang accounted for 23.5% of the total.

(three) the unit price of textile exports has risen overall.

According to customs data, the average unit price of textiles exported from Zhejiang (excluding non woven fabrics) was 1.52 yuan in 2006, 10.9% higher than that in 2004, and 1.54 yuan in 2007, compared with 1.37 yuan in 2004.

In the 19 categories of the two categories (textile yarns, fabrics and products, clothing and accessories), the average unit price in 2006 increased by 12 compared with 2004, and the increase was 63.2%.

They are synthetic short fiber and cotton blended yarn (except for sewing thread) (increased by 106.75%), silk fabric (increased by 55.8%), man-made fiber staple yarn (except sewing thread) (increased by 23.05%), synthetic short fiber and cotton blended woven fabric (increased by 19.12%), cotton towels (increased by 17.87%), fabric socks (16.6%), fabric made garments (12.95%), linen and ramie woven fabrics (12.52%), handkerchiefs, cotton knitted fabrics, fabric gloves, cap type.

The rise in unit price of textile exports, on the one hand, shows that the quality of export textiles has improved steadily, and the price performance has become more reasonable. On the other hand, it has also shown that under the multiple pressures of export restrictions, rising costs, rebate rate reduction and RMB appreciation, many enterprises have been able to digest some of the reduction factors by raising export prices.

(four) textile export market is more diversified.

Exports to the European Union and the United States have returned from moderate growth to high growth.

In 2005, Zhejiang's textile exports to Europe and the United States increased by 50.1% and 55.5% respectively, an increase of 33.9 and 26.1 percentage points over the previous year.

Restricted by quotas, exports to Europe and the United States slowed down to 21% and 11.5% in 2006. In 2007 1-8, Zhejiang's exports to Europe and the United States increased by 15.6% and 13.5% respectively.

While the proportion of exports to Europe and the United States has declined, the export growth of some emerging markets is obvious.

Over the years, the textile export market in Zhejiang has been mainly concentrated in European and American countries. In 2005, its exports accounted for 46.7% of the total, the market dependence was too high, and the industrial risk was relatively large.

After the textile exports fluctuated in 2005, enterprises attached importance to developing new export markets.

In 2006, Zhejiang's textile exports to Africa and Latin America increased by 29.8% and 49.1% respectively, higher than the 24.7% and 11.5% increase in exports to Europe and the United States, accounting for 8.9% and 6.7% of textile exports, respectively, 0.5 and 1.2 percentage points higher than the previous year. In addition, textile exports to Mexico and Pakistan increased by 191.2% and 87.8%.

In the 1-8 months of 2007, the proportion of textile exports to Africa and Latin America increased to 9% and 7.5% respectively.

Zhejiang's textile exports exceeded one hundred million US dollars and the number of countries and regions increased year by year, from 43 in 2004 to 52 in 2006.

(five) investment in textile industry has stopped rising, and the pace of "going global" has been quickened.

After the great fluctuation of textile exports, most textile enterprises recognized the importance of improving the level of technology and equipment and added value of products, and increased the introduction of advanced equipment.

In 2006, textile machinery imported 790 million US dollars, an increase of 21%.

In the first 7 months of 2007, textile machinery imports amounted to 590 million US dollars, ranking second in the provinces and municipalities, accounting for 21.4% of the total imports of textile machinery nationwide, with a growth rate of 57.2%, higher than that of Jiangsu (24.2%) and Guangdong (5.4%).

In 2005, the textile industry (including textile and clothing, chemical fiber) invested more than 46 billion 220 million yuan in the province, an increase of 3.4%.

In 2006 and 2007 1-8, the textile industry invested 52 billion 530 million yuan and 38 billion 260 million yuan respectively, an increase of 18.4% and 19.1%.

In order to avoid quota restrictions and trade barriers, and further utilize foreign resources, textile enterprises should accelerate the pace of "going out".

At present, textile and garment enterprises account for 20% of the total number of overseas production enterprises in the province.

For example, Ningbo Shenzhou Knitting Group Co., Ltd. set up 230 thousand textile factories in Kampuchea, attracting more and more domestic and downstream enterprises or similar enterprises.

Three, the production and operation of textile enterprises is becoming more and more difficult. Since 2005, the textile industry has undergone major changes, coupled with the new changes in the terms of international trade. Textile enterprises have been under great pressure and difficulties.

(1) quota limits the ability to export textile products.

In recent 3 years, the volume of textile quota granted by Zhejiang enterprises in Europe and the United States has been ahead of the whole country, but far lower than export capacity, which has led to a slowdown in export growth.

For example, Zhuji, the world's largest stocking production base, accounted for 30.3% of the total volume of socks exported to the United States in 2005, while the quotas in hosiery enterprises accounted for only 6.1% of the total number of national bidding.

In the second half of 2005, the distribution of textile quotas is quite scattered. Some clothing enterprises have only a few or more than a dozen of quotas, which can not be shipped at all.

The textile quota market regulation is not standardized, aggravating the difficulties of enterprises.

At the beginning of 2006, due to the contradiction between supply and demand of quotas