Uncertainty Increases &Nbsp; China Textile Strives For Steady Growth.

The development of the textile industry encountered many difficulties in 2011. Many problems still remain unsolved. Under the prediction of "the world economy going to the bottom of the world in 2012", these problems become more severe in the first half of 2012.

In March 6th, the China Textile Industry Federation News Center held the "textile industry economic situation conference" in Beijing in 2012. When analyzing the main risks faced by the industry in 2012, it also made a series of suggestions for the government to solve the problems and find the industry itself.

According to the National Bureau of statistics, in 2011, 36 thousand Textile Enterprises above Designated Size realized industrial output value of 5 trillion and 478 billion 650 million yuan, an increase of 26.8% over the same period last year, the growth rate dropped by 4.8 percentage points compared with the first quarter, and sales value of 5 trillion and 360 billion 170 million yuan, up 26.86% over the same period, down 4.6 percentage points compared with the first quarter.

The total investment in fixed assets of over 5 million yuan in the whole industry reached 679 billion 910 million yuan, an increase of 36.3% over the same period last year, and the growth rate dropped 2.2 percentage points compared with the first quarter.

Enterprises above Designated Size realized profits of 295 billion 642 million yuan, an increase of 25.94% over the previous year, down 27.63 and 15.31 percentage points respectively from the first quarter and the first half of this year.

According to customs statistics, exports of textiles and clothing totaled US $254 billion 120 million in 2011, an increase of 19.9% over the same period last year, and the growth rate was 7.2 percentage points lower than that at the end of April. Of these, export prices rose by 19.3% compared to the same period last year, and the number of exports increased by only 0.5% over the same period last year.

According to the China Textile Industry Federation's tracking data on key industrial clusters, the sales revenue of enterprises under the scale increased by 6.71% over the same period of 2011, and the profit grew by 9.9% year-on-year, far below the growth level of Enterprises above designated size.

The 9 garment industry cluster whose export proportion is greater than 20%, the total profit of enterprises under the scale is only 4.7%.

It is easy to see from the data that in 2011, the main indicators of the industry maintained a relatively fast growth and the operation situation was basically stable.

However, all kinds of risks in the operation of the industry increased significantly compared with the previous year. The international market continued to slump, raw material prices fluctuate, production costs continued to rise, and the financing environment tightened and other factors increased the operating pressure. The main economic indicators showed a slowing down trend. The decline in export volume and industry profit growth was particularly prominent. The operation of small and micro enterprises encountered great difficulties, and these difficulties were pferred to 2012 in 2011, and the tight and severe situation will appear in the first half of 2012.

2012: is tight and grim in the first half of the year

Although the opening in 2012 has remained stable overall, the industry still faces a series of risks, including the shrinking international market, slowing domestic market growth and rising cost of production factors. In the first half of this year, the industry will operate in a tight and severe situation.

Speeding up structural adjustment and pformation and upgrading, striving for national policy support, reducing operational risks and promoting steady economic growth are an arduous task facing the textile industry.

At the beginning of 2012, large enterprises, independent brand enterprises and domestic enterprises were able to start up to 80%-90% due to sufficient orders and abundant funds. The staff return rate was about 80% after the festival, and the turnover rate of employees was 10%-15%.

Some small and medium-sized enterprises are facing more difficulties. In particular, export processing small and micro enterprises, such as reduced orders, insufficient staff, tight funds and difficult pformation, need more attention from the government and industry.

The industry faced major risks in the first half of 2012.

European debt crisis continues to escalate

In the first half of 2012, the textile industry will continue to show the main trend of the domestic market. However, with the slowdown of social investment growth, the weakening of export driven economy, and the deepening adjustment of the economic structure, it is expected that the growth rate of the macro economy will be reduced, and the growth rate of consumption may slow down compared with that of last year, which will directly bring about a slowdown in the growth of clothing consumption.