Tensions Between China And Japan In The Diaoyu Islands Incident: Can China'S Textile And Apparel Trade Go Smoothly?

In recent days, the Diaoyu Islands incident has aroused widespread concern in the society, and Sino Japanese relations are very tense.

Will trade be affected? Let's take a look.

In 2008, due to various unfavorable factors, China

Industry is generally regarded as the most difficult year in the past 30 years.

According to customs statistics, China's textile and apparel exports totaled 42 billion 602 million US dollars in the first quarter, an increase of 17.5% over the previous year.

China

Clothing exports are quite different from specific markets.

Among them, exports to the US still rank first, reaching 4 billion 937 million US dollars, a 1% increase over the previous year, while exports to Japan amounted to $4 billion 634 million, an increase of 8.7%, and a decrease of 9.8% to the Hongkong market of 3 billion 347 million US dollars.

In the first quarter of this year, China's textile and clothing products increased by 8.7% to the sunrise, which may be a sign of warming in the Japanese market compared with a 0.7% decline in the same period last year.

This is the highest growth rate in the first quarter of the 4 year since the 2005 year (12.2% in the first quarter of 2006).

Industry analysts believe that the Japanese market is a highly open and mature market.

After adapting to the pressure of European and American quota cancellation, RMB exchange rate changes and the strong competition of China's neighboring countries, Chinese export enterprises are changing from single price advantage to multiple advantage through optimizing product mix, changing operation mode and adjusting business operation mode.

The textile and garment trade between China and Japan still has good prospects and potential.

The appreciation of the yen partly offset the pressure of RMB appreciation.

Many influences on Chinese textiles

Among the factors, the most important factor that enterprises think is the appreciation of the RMB exchange rate.

But for the Japanese market, this objective pressure has slightly slowed down.

As the yen also appreciated in the first quarter, especially in March, it was once close to 1:95, which made the textile trade between China and Japan offset each other.

The Japanese textile industry generally believes that for textile and garment enterprises that import Chinese textile and garment as the main business, the appreciation of the yen can reduce the negative impact brought about by the appreciation of the renminbi and the increase in labor costs to a certain extent.

As the RMB exchange rate continues to rise, the import clothing costs of some major Japanese trading companies have risen by 5%~7%, and the appreciation of the yen can basically offset the negative impact of the appreciation of the renminbi.

Data analysis shows that the Japanese economy will enter an important adjustment period in 2008.

Judging from the current situation, it is difficult to accelerate the economy obviously, but if we can overcome the current problems and obstacles, we will continue to maintain low growth.

Japan's main non-governmental research institutes predict that Japan's economy will grow by 2% in 2008.

At present, the domestic consumer consumption activities in Japan are still cautious, and the domestic clothing consumption market in Japan is still in the doldrums. Because of the fierce competition, the retail industry is difficult to pmit the pressure of rising prices in the middle reaches of textile and clothing, and there is still a market demand for lower prices in the lower reaches of the retail market.

According to the data, many retailers have asked to reduce the wholesale price of clothing, which is equivalent to the appreciation of the Japanese yen.

The appreciation of the yen also hit the pressure of retail price cuts.

Changing the mode of trade growth and showing the evolution of China's export to Japan

According to customs statistics, in the first quarter of 2008, China's trade in textiles and clothing exports to Japan increased by 15.9%, while processing trade increased by only 0.22%.

This shows that the growth of China's textile and clothing exports to Japan is mainly caused by general trade growth in the first quarter of this year.

In recent years, with the low consumption demand in Japan, Chinese and Japanese textile and garment enterprises have been competing fiercely in order to survive in the limited market.

China's export enterprises to Japan can actively adjust trade patterns, especially in the supply market of surface accessories, and have reduced the proportion of imports and processing trade accordingly.

At the same time, China's exports to Japan mostly focus on Japanese trade, and have deep cooperation with Japanese counterparts. Therefore, they can timely communicate and adjust product mix according to market changes, actively extend the industrial supply chain, and enhance the supply capability of export products and related links such as planning design, surface accessories, delivery time, batch and so on, so as to enhance the added value of products.

Anyway, like Diaoyu Island incident can be resolved peacefully, as soon as possible, like the Sino Japanese textile and garment trade can also proceed smoothly.