Analysis Of China's Textile And Clothing Exports In July

Statistics show that in 2019 1-7, the total export volume of textiles and clothing in China was 154 billion 50 million US dollars, down 0.1% from the same period last year, of which the total export volume of textiles was 68 billion 340 million US dollars, down 0.1% from the same period last year. The total export volume of garments was 85 billion 710 million US dollars, down 0.1% from the same period last year. As the world's economic and trade relations are more and more complicated, how are the textile and clothing export markets moving?

Figure 1 shows that in July 2019, China's textile and clothing exports amounted to US $27 billion 510 million, an increase of 11.6%, an increase of 2.1% over the same period last year. Among them, textile exports amounted to US $10 billion 770 million, an increase of 6% over the same period last year, and clothing exports amounted to US $16 billion 750 million, a decrease of 0.3% over the same period last year. Although the total volume of textile and clothing exports increased in July, the cumulative export volume declined in 1-7 months, and the clothing that dominated the export volume was decreasing in the month or in total. My agricultural product network thinks that there are several factors:

1, exports to the US have declined. Data show that in 2018 1-7 cotton machine fabric exports in the top ten of the countries (regions), the United States is on the list, in contrast to the 1-7 ten cumulative list in 2019, the United States is not on the list. My agricultural product network understands that since the deterioration of Sino US economic and trade relations, textile enterprises need to go through layers of barriers before they can get the US list. Some enterprises even have no grain from the beginning of the year, and there is no American customer asking price. As Sino US trade uncertainty increases, exports to the United States will face enormous pressure.

2, exports to ASEAN have declined. Although the number of ASEAN countries has not decreased in the past ten, the main export area of cotton machine fabric is still ASEAN, but the total amount has decreased significantly. It dropped from $2 billion 300 million in 2018 to $1 billion 980 million in 2019, a decrease of 13.8% over the same period last year, of which Vietnam decreased by 110 million, Philippines decreased by 150 million, and Kampuchea decreased by 60 million. My agricultural product network thinks that this has a significant relationship with ASEAN countries in developing textile industry. With the improvement of industrial chain, ASEAN has more prominent advantages in the international market.

3, the growth of competitors. Vietnam is the second largest supplier of clothing to the United States and Japan. My agricultural product network understands that due to the tax rate, some enterprises have transferred to some Vietnam regular orders for the sake of maintaining profits. When our orders were not smooth, orders from Vietnam and other places were scheduled for next year. Bangladesh is the second largest supplier of clothing in the European Union. According to the existing development mode, Bangladesh will catch up with China as the first largest garment supplier in the EU within 5 years. China's share of the international market is bound to decline.

From 2017 to 2019, both textile inventory and clothing inventory are increasing every month. Clothing inventories increased by 2.1% in June, and textile inventories were 5.5% higher than last year. According to my agricultural product network, people in the industry generally respond to the pressure of sales performance. Small to stores, large shopping malls, more or less stock. It is obvious that supply exceeds demand in the market. Going stock will be a long process. The number of garment enterprises in June increased by 9.2% compared with the same period last year, while the textile category was even higher, reaching 12.7%. The whole textile industry is not prosperous enough, and its competitiveness is bound to slide.

To sum up, there are losses in industrial enterprises, textile and garment industries are in a state of weakness and competitiveness is weakened. The strong textile industry orders are evaporating, and textile and clothing exports are faced with no small challenges. If there is no significant positive stimulus, the short-term market will not be reversed.