Innovation And Development To Add Momentum To Textile And Garment Trade

In recent years, due to

China

A downward trend.

Is also gradually decreasing.

In 2017,

According to World Trade Organization statistics, China accounted for 36.7% of global textile and garment trade in 2016, the first decline in 20 years.

In 2017, China's textile and apparel industry in the United States, the European Union and Japan.

The shares were 36.3%, 33.8% and 60.8%, respectively, which were 2.4, 4.4 and 10.4 percentage points lower than 5 years ago.

In the first 8 months of this year, China's textile and clothing exports remained stable, with exports of US $181 billion 400 million, an increase of 3.7% over the same period last year.

Among them, textile exports amounted to $78 billion 740 million, an increase of 9.5% over the previous year, and clothing exports of $102 billion 670 million, down 0.3% compared with the same period last year. Clothing exports have declined for fourth consecutive years since 2015.

According to the data of the past 8 months, the import and export of textile and clothing this year mainly showed the following characteristics:

First, exports to the traditional market and the "one belt and one way" country maintained steady growth. In the first 8 months, China's exports to the EU increased by 1.7%, exports to the United States increased by 8%, and exports to Japan and Hongkong increased by 2.9%.

Exports to the countries along the belt and road grew by 5%.

In emerging markets, China's exports to ASEAN grew by 12.3%, exports to Latin America increased by 7.6%, and exports to Russia increased by 3.9%.

The decline in export growth was mainly in the Middle East (14.3%), Africa (1.5%) and Korea (3.6%).

In the first 8 months, the proportion of textile and clothing exports in China was 43% and 57% respectively. Although clothing exports still exceed textiles, the proportion of garments is decreasing year by year.

At this rate of development, it is expected that within a few years, the proportion of China's textile exports is likely to exceed that of clothing.

The trend of textile and clothing export also reflects the new changes of China's textile and garment export competitiveness.

The competitiveness of products is enhanced, and the labor-intensive clothing products are declining year by year due to competition from low cost countries.

Three, except for Guangdong, other major export areas grew well. In the first 8 months, Zhejiang's exports increased by 10.7%, and continued to lead the whole country. Jiangsu, Shandong, Fujian and Shanghai increased by 6.1%, 10.2%, 6% and 4.7% respectively. Only 10.9% of the Guangdong showed a significant decline, and clothing accounted for 70% of Guangdong's exports. The downturn in clothing exports led to a decline in its overall exports.

Four, the import of textile and clothing keeps growing, driven by the surge in clothing imports. In the first 8 months, China's textile and apparel imports reached 17 billion 580 million US dollars, an increase of 10.8% over the same period last year, of which 8.4% of textile imports and 16.7% of clothing imports soared, driving the overall import and export of textile and clothing to maintain rapid growth.

In the first 7 months, the import market share of China's textile and apparel products in the United States was 34.2%, down 0.6 percentage points from the same period last year, of which the textile market share was 40.4%, an increase of 0.4 percentage points compared to the same period last year, and the clothing share was 32.1%, down 1 percentage points from the same period last year.

In the first half of the year, the import market share of China's textile and apparel products in the EU was 29.7%, down 1.5 percentage points from the same period last year, of which the textile market share was 34.8%, an increase of 0.05 percentage points compared to the same period last year, and the clothing share was 28%, down 2 percentage points compared to the same period last year.

The share was 53.1%, a decrease of 1.1 percentage points compared with that of the previous year, and the share of clothing was 58.4%, which was 3.5 percentage points lower than the same period last year.

Although China's textile and clothing exports have shown a stable trend since last year, but from the development trend and characteristics of the textile and garment industry in recent years, the international political and economic environment has great uncertainties. The Sino US trade frictions are escalating, regional competition is becoming more and more intense, the rise of low cost countries, the fluctuation of global raw material prices, the accelerated layout of Chinese enterprises overseas, and the pressure of domestic industry pformation and upgrading, and China's textile and garment exports will fluctuate slightly in the long run.

Share, especially the slow decline of the share of clothing.

Recently, Sino US trade frictions have continued to escalate. Importers and purchasers will have to adjust their purchasing strategies substantially, which is likely to have a great impact on the textile and garment trade between China and the United States in the coming years.

The United States is the largest single country export market of China's textile and clothing, accounting for 16.9% of the total exports of China's textile and clothing.

According to customs statistics, in 2017, China exported US $45 billion 640 million of textile and clothing to the United States, and exported 3.5 enterprises.

At present, the US has already taxed about 7 billion dollars in textile and clothing products, accounting for 16% of China's total exports of textiles and clothing to the United States, and about 1.7 export enterprises.

The recent research conducted by the China Textile Import and Export Chamber of Commerce for nearly 100 export enterprises to the US shows that the impact of Sino US trade friction has gradually emerged, and export enterprises are generally worried about the uncertainty of the trade environment.

With the current cost increasing, the US tariff increases will be worse than ever. It will not only seriously erode the profits of enterprises, but also accelerate the pfer of orders and industries to other countries.

Faced with the escalating threat of trade friction, China

Enterprises take active measures to deal with them.

First, it actively participates in the US "301" clause legal investigation procedure, urges importers to participate in public review procedures and hearings in the United States, and strives to exclude stakeholders from the list of taxes.

The Chinese textile import and Export Chamber of commerce also sent a working group to speak at the hearing held by the US trade negotiator's office in August 23rd to voice the Chinese industry and safeguard the interests of the industry.

Two, we should speed up export, avoid tax risks and minimize losses as far as possible.

Three, we should increase international cooperation and layout of production capacity, take the initiative to make use of other countries' resources to make production and increase control over the supply chain.

Four, we should speed up the process of pformation and upgrading, increase investment in equipment and technology, improve production efficiency, product quality and market reaction speed, increase product added value, enhance design and research capabilities, supply chain management capabilities, resource integration capabilities, brand building capabilities and international marketing network development capabilities, so as to digest the profit loss caused by taxation.

Five, we should further implement the strategy of market diversification and increase our efforts to expand the market for emerging markets, especially those along the "one belt and one road" market.

To avoid the risk of single market.

Recently, the government has issued a series of positive policies in terms of trade facilitation, tax rebate, credit guarantee, environmental protection and social security, so as to further improve the business environment, provide greater export space for export enterprises, offset the adverse effects of trade friction on exports, and effectively boost the confidence of export enterprises.

Although faced with all kinds of difficulties, this is a necessary pain in the process of pformation and upgrading.

The current slowdown in China's textile and clothing exports is a structural adjustment in the new era and should be treated with a common sense.

The "one along the road" initiative will effectively strengthen China's core position in the textile and garment supply chain in Asia and the world. The pformation and upgrading of "China made" and the leap from OEM to ODM and OBM are the fundamental basis for China's textile and clothing to maintain their export competitive advantages, and the structural pformation of the international market pattern provides new opportunities for Chinese enterprises.

China

The future development should focus on the theme of "one belt and one road" construction and the pformation and upgrading of industries, and adhere to the role of innovation and green development in improving the industrial chain, integrating supply chain and enhancing value chain, so as to promote the continuous upgrading of the industry and seek the path of specialization, differentiation, lean and internationalization.

Although textile and clothing are traditional industries, as long as they are quickening integration with new kinetic energy, China's textile and garment foreign trade industry will move towards high quality development and usher in new brilliance in the future competition pattern.