China'S Textile And Garment Industry Has Been An Important Part Of Export For Many Years.

Recently, according to the news, influenced by the closures of textile and garment production enterprises in China, a large number of clothing brand shops have been closing down all over the country, including Bosideng, Li Lang, BELLE, Giordano, Anta, nine herdmen, seven wolves, etc.

Large textile and garment enterprises are frequently closed down, which will directly involve the employment problem of the 170 million population.

The pillar industries that once occupied half of China's exports touched the nerves of countless Chinese people.

Statistics show that as of October this year, China's clothing and

The total export amount was 92 billion 96 million yuan, and the total export value in the 1-10 months was 888 billion 649 million yuan (1 yuan equivalent to about 0.1565 US dollars), representing a decrease of 7% compared with the same period last year.

In October 2015, the average operating rate of the above scale spinning enterprises in China increased from 9% to 2% in the same period, and the stock days of pure cotton yarn increased by an increase of the same period compared with the same period last year. The inventory pressure was obvious. In view of the fact that the actual production cost caused by the unsaturation started to rise, the profit level of pure cotton yarn was about 2%, down by 0.5% compared with the same period last year.

Obviously, the rising cost of manpower, land costs, environmental costs and heavy taxes are one of the important factors that lead to the difficulty of the textile and garment industry.

Taking workers' wages as an example, the report on global manufacturing economy pferred by BCG, a US consulting firm in Boston, pointed out that although the manufacturing wages in the top 25 exporting countries of the world rose from 2004 to 2014, the average annual wage growth rate of China and Russia reached 10% - 20%, and this situation has lasted for 10 years, while the annual average wage growth rate of other economies is only 2%~3%.

Ling Fangcai, chairman of Guangdong textile import and export Limited by Share Ltd, said: "labor costs account for 30% to 40% of the cost of production, so enterprises are very sensitive to labor costs.

Now, our labor cost is 5 to 6 times higher than that of Southeast Asian countries, so these foreign businessmen are looking for a place to replace our country's production.

As for the price of land, it is possible to compare the data provided by the United States and China with the data provided by Lang Xianping, an economist in Hongkong. The average industrial land in China is about 102 US dollars per square meter. The land price in the Midwest of the United States is 13 to 20 dollars per square meter, and the cost of land in San Francisco is about 46 dollars per square meter.

In addition, in terms of electricity cost, China's industrial electricity consumption is 1 yuan electricity 1 yuan, the United States is half of our country.

China's logistics cost is 1.5 to 2 times that of the United States.

Our country has almost the same toll as the oil price, which is 0.5 yuan per kilometre. According to the calculation of 100 liters of oil consumption of 10 liters of oil, the road toll is equivalent to 5 yuan per liter of oil, and its logistics cost can be imagined.

It can be said that because of the sharp increase in costs, not only domestic

Complain incessantly, but also make many foreign enterprises overwhelmed.

The most famous ones include Adidas, Nike, UNIQLO, Muji, Castle Peak commercial, Li Fung, Tokyo STYLE, Honeys, etc. these companies are accelerating the pfer of orders to Southeast Asia.

It is worth mentioning that these evacuated foreign enterprises do not engage in actual production, but rather occupy the high-end industrial chain through brand effect and order retailing. Therefore, with the rise of operating costs in our country, we can easily pfer positions to "go far away from home", and local enterprises entrenched in low-end production are not so lucky. They can suffer from multiple shocks, such as weak external market demand and rising domestic costs, and finally suffer from the "victims" of the economic recession.

All of these are "internal worries", triggering our country.

The tide of collapse is also inseparable from "foreign invasion".

The so-called "foreign invasion" refers to the fact that a 4 trillion economic stimulus in 2008 caused serious distortion of the price signals, which led to irrational and even wrong investments by entrepreneurs.

It can be said that this is the most crucial factor that causes the closures of Chinese clothing.

According to some textile business owners' recall, the textile and garment industry in 2008 had already seen an economic crisis. Most enterprises were prepared to contract their production capacity and cut down their employees.

However, due to the introduction of 4 trillion of the economic stimulus plan, from the second half of 2009, the business of textile and garment industry was unusually hot. In 2010, the price of cotton rose from 10 thousand / ton to 30 thousand / ton.

With the short boom of the market and the push of banks, the industry has launched a wave of crazy capacity expansion.

Some local governments are taking the lead in creating a focus area for textile and garment industry, encouraging textile and garment enterprises to expand new factories and purchase new ones.

Unexpectedly, by 2012, the "4 trillion" economic stimulus subsided, many orders fell sharply, and millions of expensive imported equipment were left idle.

Coupled with the sharp drop in cotton prices, many textile companies made money in the first two years.

It can be predicted that with the continuous downward trend of China's economy, the "cold winter" of China's clothing and textile industry is far from over, and will continue to be difficult for quite a long time in the future.

In fact, regardless of the huge capacity surplus or the continued decline in exports, it is clear that China's extensive economic development model has been difficult to sustain.

If our economy is to achieve rebirth of Nirvana, only by changing the path, we can break the monopoly of state-owned enterprises and financial institutions, deepen market reforms and stimulate vitality of enterprises. On the other hand, we can boost domestic demand through massive tax cuts and social welfare protection, otherwise there is no other way.

The key lies in the government's choice.

Before the intersection of history, what is the next choice? People will wait and see.