Wang Shouwen: Export Advantage Of Textile And Garment Industry Is Facing Risks

"We must attach great importance to the aggravation of the pfer of orders from Chinese enterprises to overseas."

Wang Shouwen, director of the foreign trade division of the Ministry of Commerce, said.

In connection with China's current foreign trade development situation, Wang Shouwen's reminders are not groundless.

In recent years, with the continuous rise of labor, logistics, raw materials and financing costs, the constraint of energy, land and ecological environment on the development of foreign trade is increasingly obvious. With the appreciation of RMB, the traditional export price advantage of China is facing challenges.

Wang Shouwen, for example, said that before 2010, China produced textiles, clothing and so on.

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Products in Europe and the United States and other traditional markets occupy an absolute advantage and high-speed growth, but since 2011, this phenomenon began to change.

Monitoring shows that in the first three months of this year, China's textile and apparel products exported to Japan increased by about 7% compared to the same period last year. During the same period, similar products imported from Vietnam and Kampuchea grew by more than 40% over the same period.

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It is an important factor that affects the pfer of apparel orders to overseas.

Hua Shan, director of planning consultation department of China Textile Construction Planning Institute, said that the ratio of wages and welfare benefits to garment enterprises' processing costs is about 50%-55%.

In addition to cost factors, Wang Shouwen said the change of business strategy is also worth the attention of all concerned parties in China.

He introduced that at present some foreign enterprises take the form of "China plus one" (China +1) to place order, rather than single choice of China.

The emergence of this phenomenon has made an early warning of the "loss" of Chinese enterprises' orders from one side.

Based on this, Wang Shouwen said that Chinese enterprises, especially those in the eastern part of China, have the ability to "turn inward and look inward" consciously. Relying on the rapid development of the central and western regions, more orders will remain in China.

It is known that the Midwest economy has been developing rapidly in recent years. Up to now, its total economic volume has accounted for 43.5% of the whole country, but its dependence on foreign trade is only 10.6%.

Wang Shouwen believes that, compared to the eastern region, the central and western regions have more obvious advantages: relatively complete industrial chain, high level of labor productivity, large domestic market, meet the needs of the season and the ability to respond to emergencies.

Wang Shouwen frankly stated that the domestic pfer of Chinese enterprises' orders also faces a series of difficulties, such as the high pport costs, the lack of awareness of local authorities and related enterprises, and the urgent need to improve the export tax rebate policy level.

In view of this, Wang Shouwen said that the next step will be to solve the above problems from multiple levels.

He disclosed that the national circulation work conference was about to be held. At this meeting, a series of related policies will be introduced soon, and the high circulation cost of enterprises is expected to be further compressed.