National Cotton Industry Organizations Appeal To The Industry To Cope With The Crisis And Tide Over Difficulties.

This year, a sudden new crown epidemic raged around the world, seriously disrupting the normal production and living order, and brought unprecedented unprecedented trade environment to the whole world. China and even the world's cotton textile industry suffered heavy losses.

1. Trade imbalance in the global cotton textile industry chain

According to the three surveys conducted by the international textile manufacturers Union (ITMF) on 13-25 March 2020, 6 -4 March 28th, and April 16th -28, 600 enterprises around the world showed that the proportion of global textile orders cancelled or postponed from around 8% to 40% or so compared with the same period last year. In 2020, the global textile industry expected to expand its turnover from 10% to 33%.

In view of the current unilateral breach of international brands and retailers, China Cotton Association, France Cotton Association, Bangladesh Textile Association, Indonesian textile association, American cotton merchants association and many other cotton and textile associations have sent letters to the international cotton association cooperation committee (CICCA), reflecting the cancellation or extension of their cotton and textile orders, resulting in fragmentation of capital chain and unemployment of workers. Bankruptcy and so on. In May 7th, CICCA published a letter to the global cotton and textile industry, saying that in today's challenging era, the core principles of collaboration, communication and performance of contracts are more important than ever before. Under the extreme trade environment, we should adhere to the principle of sanctity of contracts, cooperate with all parties in the industrial chain, work hand in hand to tide over difficulties, and avoid any unreasonable measures that may lead to an imbalance in the international cotton market.

Two. China Cotton Association strengthens communication and cooperation with the international cotton industry organization.

According to the members of the China Cotton Association, many foreign brands and retailers are shelving, rejecting, lowering prices or even cancelling orders because of the epidemic situation. A large number of domestic cotton textile enterprises are facing difficulties in stopping production and shutting down, which will affect the whole industry chain. As a member of the international cotton association cooperation committee (CICCA), the China Cotton Association sent a letter to CICCA on 24 April, calling on all parties to take a long-term view and resolve the difficulties in full consultation to minimize the obstacles to fulfilling the contract so as to avoid any unfavorable situations such as trade disputes, breach of contract and arbitration.

In April 30th, the China Cotton Association participated in the video conference of all members of CICCA. The following suggestions were put forward: first, the cotton associations of all countries should actively seek policy assistance for enterprises, and call on their governments to focus on supporting the cotton industry. Two, as an international cotton organization, CICCA should voice its voice to the global industrial chain in the name of collectives, and urge all parties to work together to tide over the difficulties. Three, in view of the massive cancellation of orders by brands and retailers and the difficulties in the whole industry chain, it is suggested that CICCA include members' associations to communicate with textile and apparel associations of various countries, and urge its members to abide by contracts and safeguard the overall interests of the industry.

In the same period, our association held a telephone conference with the ACSA and AAFA to exchange the cotton situation between China and the United States under the influence of the global epidemic. It suggested that it will continue to strengthen cooperation between the two countries, and actively play the role of communication and coordination of the association in the unprecedented difficult times to help the industry tide over the difficulties.

Three, policy recommendations

The cotton textile industry is a labor-intensive industry with a high degree of internationalization, a long industrial chain and close links, involving many enterprises. The new crown epidemic will have a long-term impact on the global economy, resulting in a considerable period of time consuming textile and apparel consumption in various countries. The industry has a high risk of default and a chain reaction. At present, the change of cotton and textile trade orders has affected cotton traders and cotton growers. Therefore, we need to consider how to realize cooperation and communication in the whole industry chain. The association will continue to do relevant work and make the following recommendations:

1, it is suggested that the state should include cotton and textile industry in key supporting industries, and increase support and support for key industries and small and medium-sized enterprises in finance and taxation. We should give full play to the role of backbone enterprises in stabilizing the market and provide necessary support to them as an effective supplement to the state's macroeconomic regulation and control.

2, it is suggested that foreign-related legal aid should be provided to enterprises in need to cope with possible legal disputes involving foreign trade arbitration and so on, so as to safeguard the interests of enterprises to the greatest extent.

3, it is suggested that the government vigorously boost domestic demand for cotton and textiles, guide export oriented foreign trade enterprises to upgrade and maintain sustainable and stable development of cotton textile industry.