A Large Number Of Overseas Textile Orders Have Returned, And Made In China Is Irreplaceable

Recently, a large number of Indian textile orders flow back to China, causing widespread concern in the market. Many textile enterprises in Zhejiang Province will return to China in May and find that there will be a large number of textile enterprises returning to China in May. A truck driver said he had to wait three hours before loading. Li Xingqian, director general of the foreign trade department of the Ministry of Commerce, also disclosed to the media that at present, almost every day in China, foreign trade orders from some industries and regions are transferred to other countries and markets for production.

A large number of foreign orders have returned, which is the first proof of the great success of China's epidemic prevention. Textile industry is a traditional labor-intensive industry, most of the products have high substitutability. In the past few years, with the rise of domestic labor costs and the aggravation of Sino US trade friction, a large number of low-end textile orders were transferred to countries and regions with lower labor costs such as India and Southeast Asia. These countries and regions do have the resource advantage to undertake the low-end textile industry. However, the sudden outbreak has changed the standard of industrial development environment, which just highlights the irreplaceable nature of China in the global value chain and industrial chain.

Because, in the current international trade, in addition to comparative resource advantages, the overall ability of epidemic prevention and control and social governance has risen to be a key indicator to measure industrial development. In this regard, China is far ahead of other countries.

Among the major economies in the world, China has taken the lead in realizing the safe resumption of work and production. Take the textile and clothing industry as an example. Although the domestic textile and clothing industry is also facing a cold winter in the first half of this year, due to the strong epidemic prevention, the industry has gradually recovered its vitality since May, and the export volume has reached a record high in August and September. In contrast, India and other large textile exporting countries have not reached the peak due to poor epidemic prevention. A large number of enterprises either can not resume work or can not complete the orders, so they can only transfer the orders to Chinese enterprises.

It should be noted that since the global epidemic, the export environment of made in China has not improved. On the contrary, due to political interference in individual countries, India has the intention to replace made in China with made in India. However, foreign orders still choose to transfer to China. This is because China has unique global capacity supporting advantages in raw materials, market, human resources, technology and other aspects. In addition, the price of raw materials such as cotton is at a low level, which has attracted a large number of foreign orders to flow back.

The return of foreign orders also proves from one side that made in China can play a full role in stabilizing the supply chain of the international industrial chain, which is turbulent due to anti globalization and epidemic. This is an incomparable advantage of made in China.

China has become a regulator of the global economy, not only because of its complete industrial system and strong supply capacity, which can make up for the temporary order gap and meet the needs of the global consumer market, but also because China provides such an example: it proves that although the international trade environment is changing dramatically, the division and cooperation of the global economy is still feasible It's a win-win.

Of course, we should also see that a large number of foreign orders will undoubtedly be good for domestic textile industry and other industries. The data of the third quarter of the General Administration of customs and the National Bureau of statistics also show this point. However, whether this positive effect can be sustained in the future and whether the returned orders can become long-term orders depends on the situation of global epidemic control. On the other hand, China needs to upgrade its industrial institutions and consolidate the base of made in China.

In the long run, increasing the added value of products gradually, further enhancing the non substitutability of made in China, and breaking through the key nodes in the domestic and international dual cycle are the key to realize the sustained and high-quality development of China's foreign trade. Of course, this is not only a subject of textile industry, but also the joint efforts of policy support, sound operation of enterprises in various industries and stable foreign trade environment.