Sino US Friendly Dialogue On Textile Industry: Strengthening Communication And Promoting Cooperation Under The Epidemic Situation

On June 8th, Sun Ruizhe, President of China Textile Industry Federation, held a video dialogue with Beijing chairman Bao Weilin, President and chief executive Abbott in the US. Xu Yingxin, vice president of China Textile Industry Federation, Xiaoping, deputy secretary general and director of Foreign Affairs Office, Yuan Hongping, chairman of China Cotton Textile Industry Association, attended the meeting.

Bao Weilin and Abbott first expressed gratitude to the China Textile Federation. Under the influence of the current epidemic situation, especially in the context of the gradual implementation of the first stage economic and trade agreement between China and the United States, it is very necessary for the Sino US textile industry to carry out dialogues, exchange information and discuss and discuss the concerns of both sides.

Sun Ruizhe, President of China Textile Industry Federation, said he was pleased to have a dialogue with the American cotton merchants association. Since the outbreak of the outbreak, the American cotton merchants association has sent a letter to the China Textile Federation two times to greet the latest developments in the cotton industry in the United States, pass on the good intention of providing high quality cotton for the Chinese market and supporting the recovery of China's textile industry. In this regard, China Textile Federation is deeply grateful.

Sun Ruizhe pointed out that the epidemic has caused great impact on global supply and demand, and the global supply chain can only withstand the storm better only through solidarity and cooperation. China's textile industry is willing to strengthen communication and exchanges with the US cotton industry and jointly maintain the balance and stability of the global supply chain.

To this end, Sun Ruizhe put forward several initiatives: first, to strengthen international cooperation in anti epidemic materials, especially medical textiles; two, to jointly maintain global supply chain stability and industrial safety; and the three is to jointly maintain the global open and cooperative environment.

Abbott, President and chief executive officer of the American cotton merchants association, expressed his agreement and support, and introduced the recent developments in the textile and cotton industry in the United States. Similar to the situation in China, many textile enterprises in the United States were temporarily closed and barely maintained, except for a few companies producing medical protective equipment and equipment. Textile consumption in the domestic market has almost stagnated, clothing sales have dropped sharply, and the value of textile related futures has fallen by 35%. With the gradual control of the epidemic, the United States resumed its resumption of business and resumed production. Shops resumed operations and consumers began spending.

In May, the United States Department of Agriculture issued a report on the estimated planting area, cotton production and cotton consumption in the United States in 2020. The United States Department of agriculture believes that in 2020, the cotton planting area in the United States was basically the same as that in 2019. The American cotton Merchants Association believes that planting area will be reduced, but cotton production and cotton consumption will increase. With the landing of the first stage economic and trade agreement between China and the United States, China's exports to the United States this year, especially after the new cotton market in September, is expected to increase.

Xu Yingxin, vice president of China Textile Industry Federation, introduced the latest operation of China's textile industry, especially since the beginning of the new crown, the industry's resumption and resumption of production, the main difficulties facing the sustainable development of the industry and the positive factors for future development.

Since the outbreak of the Chinese Lunar New Year Spring Festival, China's textile and garment enterprises have gone through several stages, namely, shutting down production, resuming production in succession, resuming work and resuming production. By April, the overall operating rate of the industry will be stable at around 90%. With the spread of the epidemic in the world, domestic and foreign demand is insufficient, and the load of the whole industry has decreased, and a large number of enterprises are facing difficulties in production and operation.

In the 1-5 months of this year, the total output of China's textile industry, industry investment, export and corporate profits all showed negative growth year-on-year. The main difficulties and problems are: a large number of overseas orders have been canceled, enterprises are facing serious risk of default, the impact is conductive, the upstream and downstream industries are affected, the recovery of international demand is slow, and the export of industry is declining.

As for the positive factors in the development of the industry, Xu Yingxin said that since the outbreak of the epidemic, besides the various risks and challenges, we have also seen the endogenous driving force and positive factors for the development of China's textile industry. Chinese textile enterprises strive to protect the supply of masks, medical protective clothing and other anti epidemic materials, and provide medical protection materials for all countries in the world. At the same time, with the quickening recovery of China's social production and living order, the domestic demand market has gradually recovered, and the development of the industry has strong support.

Zhu Beina, President of China Cotton Textile Industry Association, introduced the recent national cotton spinning industry.

In 1-4 months, the main revenue, export delivery value and total profit of cotton spinning enterprises decreased year by year. China Cotton Association has tracked down the output of yarn and cloth. Since mid February, enterprises have gradually entered the state of resumption of work and production. Since mid March, with the spread of the epidemic across the globe, the cancellation of overseas orders is serious, and the rate of start-up of enterprises has gradually declined, and the purchase of raw materials has declined.

After China and the United States signed the first stage economic and trade agreement, China's imports of US cotton increased. In 1-4 months, when China's total cotton imports dropped by 12%, China's imports of US cotton increased by 59%. Especially in April, China imported 57% of the US cotton imports. At present, because Sino US trade relations still have greater uncertainty, domestic cotton textile enterprises are more cautious in purchasing imported cotton and are not conducive to the sale of American cotton in the Chinese market. In the survey, it is learned that enterprises will increase their willingness to use non cotton fibers. It is believed that the use of non cotton fibers will enhance the added value of products.

On the export side, the total export volume of cotton textiles and clothing decreased by 24% in the first quarter. The US market exports fell by 41% over the same period last year. Among them, the export of American cotton textiles decreased by 33% compared to the same period last year, and cotton clothing decreased by 42% compared to the same period last year.

On the whole, in the first quarter, except for a slight improvement in the boom of the cotton textile industry in March, the rest of the month was in the doldrums. The recent domestic market is improving slightly, but the market recovery still takes time. In May, the industry boom is still not optimistic.

Duan Xiaoping, vice president of China Textile Industry Federation, made a rational analysis of the problem of breach of contract by the US side, and put forward some useful suggestions.

Xiaoping said that the problem of default is widespread in the epidemic situation, not only the cotton trade, but the entire industrial chain, and Chinese textile enterprises suffer from it. Therefore, when we learned that some brands committed to cancel the order, we first publicized the industry in the first time, hoping to establish a business ethics code that strictly abide by commitments and integrity in the industry.

In the process of purchasing US cotton, the problem of default is divided into several situations. Different situations should be treated differently and negotiated. China Textile Federation is willing to assist the American cotton merchants association to judge the integrity of the enterprises, supervise and urge the enterprises that are really capable but refuse to pay, or urge the two sides to reach a solution. China Textile Federation also hopes that the suppliers represented by the American cotton merchants association can handle the related default events more humanized. In the face of severe economic situation, the two sides should understand each other and overcome difficulties together.

Xiaoping also mentioned cotton problem in Xinjiang. Recently, some international media's false reports about Xinjiang not only affect Xinjiang's cotton, but also affect China's cotton industry, and also hurt the Chinese textile related industries which are mainly cotton, and the final damage will be the common interest of the global textile industry chain. China Textile Federation hopes that the American cotton merchants association can maintain an objective and neutral position, and the two sides work hand in hand to promote the healthy development of the Sino US cotton industry.

Abbott, President and chief executive of the American cotton merchants association, thanked China for its introduction and suggestions, and was pleased to learn that China's textile industry is steadily recovering. He said that the American cotton merchants association has always been committed to promoting stable and lasting cotton trade between China and the United States. With regard to the problem of default under the epidemic, he agreed to remain rational and discriminate. The American cotton merchants association will conduct further research and discussion, and keep up with the China Textile Federation in a timely manner.

Finally, Sun Ruizhe concluded that China and the United States play an important role in the international textile value chain. After years of development and cooperation, Sino US textile industry has become the fate community. Strengthening communication and promoting cooperation is in line with the common interests of the two countries' textile industry. China Textile Federation is willing to work together with the American cotton merchants association to promote Sino US cotton trade and Sino US textile and garment trade.