Beijing Textile Industry Economic Operation Press Conference Successfully Convened

May 31st, China Spin The Federation of industry held the second press conference on the textile industry's economic operation in 2012. Sun Huaibin, director of the Ministry of industry and director of the information center, disclosed the economic operation of China's textile industry in 1-4 months.

News conference site

Sun Huaibin, director of the China Textile Industry Federation and director of the news center, analyzed the textile economic situation.

Since 2012, under the more complicated macroeconomic environment, the operation of the textile industry has generally slowed down, which is characterized by a decline in production growth, a slowdown in domestic sales, a downward pressure on exports, a slowdown in investment growth and a decline in the efficiency of enterprises. Although the industry is facing great difficulties at present, the adjustment of the industrial structure is continuing, and the trend of regional investment shifting to the central and western regions is further strengthened. The industry will accelerate spanformation and upgrading, actively strive for policy support, and strive to turn risks into opportunities.

1. Current operation characteristics of the textile industry

(1) slowdown in production growth

In 1~4 months, 36 thousand and 700 Textile Enterprises above Designated Size reached 1 trillion and 677 billion 58 million yuan in total industrial output value, an increase of 13.11% over the same period last year. The growth rate dropped by 17.43 percentage points over the same period last year. The industrial sales value reached 1 trillion and 632 billion 589 million yuan, an increase of 12.71% over the same period last year, and the growth rate dropped 17.62 percentage points over the same period last year. In the major categories of products, the output of chemical fiber, cloth and clothing increased by 13.09%, 12.83% and 7.75%, respectively. The growth rate decreased by 2.23, 2.74 and 5.75 percentage points compared with the same period last year. The growth rate of yarn production increased slightly compared with the same period last year. The 1~4 growth rate increased by 15% over the same period last year, and the rate of increase was 4.42 percentage points higher than that of the same period last year.

(two) domestic sales growth slowed down

1~4 months, textile enterprises above Designated Size realized domestic output value of 1 trillion and 375 billion 482 million yuan, an increase of 14.82% over the same period last year, 17.52 percentage points lower than that of the same period last year. The total retail sales of clothing, shoes and hats and needle textiles increased by 15.6% compared with the same period last year, which was 7.9 percentage points lower than that of the same period of last year. After deducting price factors, the actual growth rate of retail sales was only 11.6%, down 11.2 percentage points from the same period last year.

(three) downward pressure on exports.

In 1~4 months, China exported 71 billion 3 million US dollars of textiles and clothing, an increase of 1.07% over the same period last year. Textile exports amounted to 30 billion 733 million US dollars, an increase of 0.15% over the same period last year, and clothing exports of US $40 billion 270 million, an increase of 1.77% over the same period last year. The decline of export volume is characterized by the lack of price growth and the negative growth of export volume. In 1~4 months, China's textile and clothing export prices increased by 3.38% over the same period last year, an increase of 17.91 percentage points from the same period last year, while the number of exports decreased by 2.23% over the same period last year, an increase of 6.97 percentage points lower than that of the same period last year.

(four) slowdown in investment growth

1~4 months, the textile industry completed more than 5 million yuan and fixed assets investment of 184 billion 585 million yuan, an increase of 17.95% over the same period last year, the growth rate dropped 18.98 percentage points from the same period last year, and 4310 new projects, down 5.61% compared to the same period last year. In the central and western regions, new investment continued to maintain a relatively fast growth. Investment in the central region increased by 24.42% over the past 1~4 months, accounting for 28.81% of the national total, representing a 1.5 percentage point increase over the same period last year. The investment in the western region increased by 24.87% over the same period last year, and the proportion of the whole country was 7.18%, a 0.40 percentage point increase over the same period last year.

(five) decline in efficiency of enterprises

In 1~3 months, the total profit of textile enterprises above Designated Size amounted to 53 billion 704 million yuan, down 1.77% from the same period last year, and the growth rate was 55.34 percentage points lower than that of the same period last year. The sales profit margin was 4.5%, a 0.66 percentage point decrease from the same period last year, and the deficit of Enterprises above designated size was 19.67%, and the amount of losses increased 120% over the same period last year.

Two, the main factors affecting the operation of the textile industry

(1) insufficient market demand

Macroeconomic downturn, market demand is not strong, resulting in the current general shortage of enterprises and product prices are more difficult to upgrade. 1~3 months, Europe, the United States and Japan, the three largest textile and clothing market to the world, total imports of textiles and clothing decreased by 6.55% compared with the same period last year, of which the European Union dropped by 8.37%. Due to the demand of developed countries, China's exports of emerging economies such as Southeast Asian countries and other textile products also declined. In 1~4 months, China's exports of ASEAN textiles grew 2.69% over the same period last year, down 59.66 percentage points from the same period last year. Domestically, the downward trend of domestic economic growth has also led to a slowdown in domestic textile and clothing demand. In 1~4 months, clothing retail sales in China increased by 11.6% after deducting price factors.

(two) domestic and foreign cotton spreads continue to widen.

Domestic and foreign cotton spreads continue to expand, weakening the international competitiveness of the textile industry. Since September 2011, the price of cotton in the international market has declined, and the price gap with the domestic market has been widening. As of May 25, 2012, the price of domestic grade 328 cotton was 18853 yuan / ton, and the cotton price in the international market was 83.3 cents / pound. After 1% duty and value-added tax, the price was 13393 yuan / ton, and the cotton price in the international market was lower than the domestic market price 5460 yuan / ton.

(three) the pressure of international competition is increasing.

The market demand is insufficient, the difference between domestic and foreign cotton is widening, and the share of China's international market share of some textiles and garments has been spanferred to other countries. According to the latest data, China's textile and apparel market share in the United States and Japan was 35.58% and 72.03% in 1~3 months this year, down 4.55 and 2.92 percentage points from 2011, respectively, of which the market share of cotton products decreased significantly.

Three, 2012 textile industry operation trend

(1) the export situation is more severe.

From the demand level of textile and clothing, because of the uncertainty of European sovereign debt, the EU unemployment rate is high, the consumption lacks basic power, and the demand growth will be weak for a long time. Although the United States and Japan's consumer market are in a steady trend, there are still many uncertainties. It is estimated that in 2012, if domestic and foreign cotton prices are not narrowed, the export situation of China's textile and clothing will continue to be severe.

(two) domestic demand is still a support.

The income level of urban and rural residents in China has been improving continuously, and the consumption of domestic demand is continuing to expand and upgrade. There is no fundamental change in the macro fundamentals. Insisting on expanding domestic demand is still the basic starting point for China's macroeconomic regulation and control policy this year. Therefore, it is estimated that the domestic retail sales of clothing commodities will still achieve the nominal 15%~20% growth rate throughout the year, but the macroeconomic fundamentals will slow down, and the actual growth level of the domestic demand market in 2012 is expected to be lower than that of the previous year.

(three) cotton price differentials are outstanding.

The difference between domestic and foreign cotton prices is the most important factor affecting the operation of the industry in 2012. According to historical data and enterprise's reflection, domestic and foreign cotton price difference is controlled at less than 1500 yuan per ton. The textile industry's economic indicators are expected to reverse the downward trend. If the cotton price problem can be solved as soon as possible, although the external demand is sluggish and domestic demand is slowing down, the textile industry will still rely on its own structural adjustment and spanformation and upgrading to ease the problem of insufficient market demand.

Four, policy recommendations and Countermeasures to ensure stable operation of the textile industry.

In order to ensure the smooth operation of the textile industry, it is suggested that the state adjust and introduce relevant policies in time to optimize the external environment of the development of the textile industry. At the same time, the industry itself should accelerate the spanformation and upgrade, enhance the international competitiveness and further adapt to the market change.

(1) take measures to narrow the difference between domestic and foreign cotton and speed up the reform of cotton circulation system.

It is suggested that the state reserve cotton should be subsidized in the form of financial subsidies, so that the price of domestic cotton will be reduced and the domestic cotton price will be reduced, and the price difference between domestic and foreign cotton will be narrowed. In the long run, we should deepen the reform of the cotton circulation system, improve the macro control mechanism of cotton, increase the quantity of cotton imports every year until the abolition of the dual management restrictions of cotton import quotas and sliding duties, and achieve the market docking of internal and external cotton prices, and play a regulatory role in the market mechanism.

(two) to solve the problems related to taxation and tax rates, and effectively solve the "high tax and low deduction" which has long troubled the development of cotton spinning, cocoon silk and linen textiles, etc. (the value-added tax is 17% deducted 13%), the textile industry will be included in the pilot area of the State Administration of Taxation on the approved management of the value-added tax of agricultural products.

(three) reducing the bank loan cost of small and medium sized enterprises

We should pay close attention to the difficulties of small and medium-sized enterprises, improve the institutional mechanism of SME financing, alleviate the financing problems of textile SMEs, and reduce the risk of textile enterprises' capital chain. It is suggested that the competent authorities should take measures to implement asymmetric interest rate reduction measures, appropriately reduce the interest rates of industrial loans, make efforts to clean up and standardize all kinds of charges for bank loans, and vigorously alleviate the excessive financing costs of enterprises.

(four) speed up the spanformation and upgrading of the textile industry, accelerate the spanformation and upgrading of the textile industry in accordance with the requirements and deployment of the "12th Five-Year plan" and the textile power platform, and build a system and mechanism suitable for further development of the textile industry. Encourage textile enterprises to implement technological spanformation and technological innovation, set up a model of the industry, and create an external environment conducive to further promoting spanformation and upgrading of textile enterprises.