The Economic Operation Of China'S Textile Industry Has Continued To Pick Up Since 2023

2023 is the first year to comprehensively implement the spirit of the 20th National Congress of the Communist Party of China (CPC), and the year of economic recovery and development after the three years of COVID-19 epidemic prevention and control. In the face of complex and severe situations, China's textile industry conscientiously implements the decisions and arrangements of the CPC Central Committee and the State Council, adheres to the general tone of seeking progress while maintaining stability, and deeply promotes transformation and upgrading around the goal of accelerating the construction of a high-quality modern textile industry system. In 2023, with the domestic market continuing to recover and playing a leading role, and with the support of a series of national policies and measures to expand domestic demand, boost confidence and prevent risks, the economic operation of the textile industry will continue to recover, the decline of major economic operation indicators such as production, export and investment will gradually narrow, the profit growth will turn from negative to positive, and the construction of a modern textile industry system will make positive progress. In 2024, the textile industry will continue to take solid steps on the road of new industrialization. The development situation facing the industry is still complex and severe. It is still facing many challenges to continue to consolidate the foundation for economic recovery and promote high-quality development and solid progress.

　　 The industry keeps expanding and the production situation improves steadily

In 2023, due to the complex external environment and other factors, the overall production and marketing situation of China's textile industry will be severe, and the pressure on enterprises' production and operation will increase. With the stronger driving role of domestic demand, the industry's production and marketing convergence and economic cycle continued to improve. With the support of a series of national stable growth policies, the development expectations and confidence of textile enterprises gradually improved, and the overall prosperity of the industry continued to be in the expansion range throughout the year. According to the survey data of China Textile Industry Federation, the comprehensive prosperity index of the textile industry in the four quarters of 2023 will be 55.6%, 57%, 55.9% and 57.2% respectively, rising to a relatively high level in recent years.

The capacity utilization rate and production situation of the textile industry have steadily increased. According to the data of the National Bureau of Statistics, in 2023, the capacity utilization rate of the textile industry and the chemical fiber industry will be 76.4% and 84.3% respectively, both higher than the national industrial capacity utilization level in the same period, of which the capacity utilization rate of the chemical fiber industry will increase by 2 percentage points over the previous year. In 2023, the industrial added value of enterprises above designated size in the textile industry will decrease by 1.2% year on year, 0.7 percentage points less than that in 2022. Among them, the decline of industrial added value of textile industry narrowed to - 0.6%, 2.1 percentage points higher than that in 2022; The growth rate of industrial added value of chemical fiber industry continued to accelerate after turning from negative to positive in the first quarter, with a year-on-year growth of 9.6%, 8.5 percentage points higher than that of the previous year.

　 The domestic market continued to recover, and the export decline gradually narrowed

In 2023, the transformation of the prevention and control of the COVID-19 epidemic will drive the overall recovery of the consumption scene. With the implementation of various policies and measures to expand domestic demand and promote consumption, residents' diversified and personalized clothing consumption needs will be released at a faster pace, the market recognition of national fashion products and independent brands will be improved, and China's domestic demand for textiles and clothing will maintain a good recovery momentum. According to the data of the National Bureau of Statistics, in 2023, the retail sales of clothing, shoes and hats, and knitwear and textiles by units above the designated size increased by 12.9% year on year, a sharp increase of 19.4 percentage points over 2022, and the overall retail scale exceeded the pre epidemic level. Driven by positive factors such as the improvement of online retail consumption experience and the booming development of e-commerce, the growth rate of online channel retail has rebounded well. In 2023, the retail sales of online apparel goods across the country increased by 10.8% year on year, 7.3 percentage points higher than that in 2022.

Influenced by factors such as shrinking overseas demand and rising trade environment risks, the export pressure of China's textile industry will increase significantly in 2023, but the industry's development resilience will continue to show in the field of foreign trade. Exports to some markets of the "Belt and Road" will achieve good growth, driving the decline of total exports of textiles and clothing to gradually narrow. According to the data of China Customs Express, China's textile and clothing exports in 2023 totaled US $293.64 billion (excluding the textiles in Chapter 94 of the Customs HS Code), a year-on-year decrease of 8.1%, and the growth rate dropped 10.6 percentage points from 2022, but the cumulative decline has gradually narrowed since September. Among the main export products, the export volume of textiles (textile yarns, fabrics and finished products) was US $134.5 billion, a year-on-year decrease of 8.3%; The clothing export volume was US $159.14 billion, a year-on-year decrease of 7.8%. Among the major export markets, China's textile and clothing exports to the United States, the European Union, Japan and other markets have decreased compared with the previous year, while its exports to Turkey, Russia and other countries along the "Belt and Road" have increased steadily.

　　 The level of efficiency has improved steadily, and the decline in investment has narrowed

In 2023, due to insufficient market demand, increased cost transmission pressure and other factors, the operation of textile enterprises will be under pressure, but with the support of the domestic demand market, the level of efficiency will be improved steadily. According to the data of the National Bureau of Statistics, in 2023, the operating income of enterprises above 38000 in the textile industry will decrease by 0.8% year on year, 0.1 percentage point lower than that in 2022; The total profit increased by 7.2% year on year, a sharp increase of 32 percentage points over 2022, and the whole year turned from negative to positive; The operating income profit margin returned to the highest level in the year of 3.8%, 0.3 percentage points higher than that in 2022. The benefits of most links in the industrial chain have improved significantly over the previous year, and the operating income of chemical fiber, wool textile, silk, filament weaving, printing and dyeing and other industries has achieved positive growth year-on-year; Total profits of chemical fiber, silk, cotton textile, wool textile, linen textile and textile machinery industries increased by more than 10% year on year.

Against the background of weak market demand, the investment confidence of textile enterprises is still insufficient. However, as the profitability continues to improve and the pace of transformation and upgrading accelerates, the decline in industry investment has narrowed. In 2023, the completed investment in fixed assets of China's textile industry, clothing industry and chemical fiber industry will decrease by 0.4%, 2.2% and 9.8% year on year, respectively. Although the growth rate will be lower than that in 2022, it will be 10.6, 3.5 and 1.8 percentage points lower than the low level in 2023.

　 Promote stability with progress, and consolidate the development foundation of new textile industrialization

In 2024, the development of China's textile industry will still face many unstable and uncertain factors, and it will still face many challenges to maintain a stable and good recovery trend. The international political and economic environment is complex. Under the effect of tightening monetary policy in major developed economies, global economic and trade activities and the stability of the financial system are facing challenges, and the pressure of improving international market demand is still great; The "risk elimination" policy of some developed countries aggravates the risk of global "decoupling and chain disconnection". The supply chain layout of the international textile industry chain continues to adjust. The environment for China's textile industry to consolidate its international competitive advantage and carry out international trade and investment cooperation is still complex. However, the domestic macro-economy will continue to recover and improve, with strong fundamentals, high quality development vitality, wide macro policy space and other supporting conditions accumulating. With the acceleration of new urbanization and urban-rural integration process, China's super large and constantly upgrading domestic demand market advantage is still obvious, which will be the primary driving force to support the high-quality development of the textile industry. Consumption hotspots such as health, green ecology, smart life, and domestic fashion goods are full of vitality. Textile enterprises can still take an active role in seizing opportunities and planning a foothold in the process of building a high-end, intelligent, green, and integrated modern textile industrial system. At the same time, China's efforts to jointly build the "Belt and Road" have gone through a golden decade, the construction of a high standard free trade zone network has continued to advance, and the foundation for cooperation with countries along the line in jointly building the textile and clothing industry chain has been consolidated, which will provide favorable conditions for the textile industry to further explore diversified international markets and build an international supply chain system, Play an important role in preventing and resolving external risk shocks.

The textile industry will comprehensively implement the spirit of the 20th National Congress of the Communist Party of China and the relevant decisions and arrangements of the Central Economic Work Conference, adhere to the principle of seeking progress while maintaining stability, promoting stability through progress, and building first before breaking, focus on the main line of high-quality development, continue to deepen transformation and upgrading, continue to consolidate and strengthen the foundation for economic recovery, accelerate the accumulation and enhancement of high-quality development resilience, and strive to ensure the stability of the industrial chain supply chain Safe operation, continue to play the positive role of the textile industry in ensuring supply, activating domestic demand, improving employment and income, etc., make due contributions to promoting the sustainable development of the industry economy, completing the goals and tasks of national economic development, and consolidate and revitalize in the new journey of promoting new industrialization and building a modern industrial system!