Three Possible Trends Of China'S Textile Industry In The Future

According to 2016

From the perspective of domestic development and external import and export, there are three possible trends in the development of China's textile industry in the future. For this reason, the domestic textile industry needs to recognize the domestic situation and the international situation in China's current and future years. In my view, the situation may not be too optimistic, and let's look at the analysis.

(13900, 5.00, 0.04%) resource supply has heavy "domestic cotton" and "outer cotton" trend. From the 2016 cotton resources supply situation, the state vigorously promoted the entry of cotton reserves and real estate cotton into the market, while the import of foreign cotton, such as American cotton, India cotton and Australia cotton, was limited.

On the one hand, these cotton can provide cotton varieties that meet the needs of domestic textile enterprises.

C/A, EMOT, SJV and other varieties of high quality, high-grade cotton.

In addition, the United States led several major alliances to trade restrictions on China, and the United States provided priority to the signatory countries for us cotton imports. The signatory countries were Vietnam, Pakistan, Turkey, Indonesia, Mexico and other countries.

India cotton is one of China's main import resources, but because of Pakistan's crazy demand for India cotton, the price of India cotton is soaring, which is not cost-effective for Chinese textile enterprises.

Judging from the cotton market in 2016, cotton resources are still relatively tight. The cotton produced by other countries is mostly used for self marketing, and exports will be weaker.

Fortunately, from the perspective of spinning and matching cotton, high quality Xinjiang cotton + real estate cotton + National storage cotton can completely meet the needs of the cotton mill, and with the increase of long staple cotton planting area, the domestic textile factories have further declined for Australian cotton and American cotton.

If foreign trade barriers to China still exist or expand, China is likely to produce and sell itself on cotton.

At present, some industry experts are aware of the problem of cotton production. The research and production of cotton varieties has been put on the agenda, and the government will give strong support to the domestic cotton enterprises' demand for cotton.

The export of cotton textile products may be even more blocked. In 2016 /2017, China's textile and garment enterprises encountered more and more severe challenges in the European and American countries, Southeast Asia and Central Asia. Customs statistics showed that in July, the export of cotton products increased by only 2.16%, an increase of 0.17% over the same period last year. With the fluctuation of exchange rate, the Federal Reserve raising interest rate and economic deflation, the export of high count yarn, high density high density grey cloth and garments was not optimistic.

According to the international political situation, China's relations with developed countries such as the United States are not stable enough. The United States is trying to draw other countries to set up various obstacles to China's economic development.

In the first half of this year, 12 countries in the United States, Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam formally signed the TPP agreement in Oakland, New Zealand.

Together, the 12 countries account for 40% of the global economy, which has seriously affected the development of foreign trade in China's textile industry.

The textile industry may undergo structural adjustment. According to customs statistics, China imported 890 thousand tons of cotton from September 2015 to July 2016, a decrease of 700 thousand tons compared with the same period last year, a decrease of 44%. From January 2016 to July 2016, the total import of foreign cotton was 525 thousand tons, down 527 thousand tons compared with that of the previous year, with a reduction of 51%.

China's import volume has plunged sharply, making many foreign businessmen and large and medium-sized import enterprises get a big surprise. Many small trading companies and middlemen, such as Qingdao, Zhangjiagang and Guangzhou, have made changes to import yarn, chemical fiber or stores. This is a severe test for enterprises wishing or engaged in the textile industry. The instability of enterprises increases the risk of cooperation, which is not conducive to the healthy and benign development of the textile industry.

The international relations between China and other countries in the world are seriously affecting the nerves of the domestic textile industry. If China can gain greater voice in international trade, it will have great benefits to the stability and development of the domestic textile industry. Whether the G20 summit in Hangzhou can make progress on trade issues is very much concerned.

To sum up, the future development of China's textile industry is faced with multiple difficulties. The situation is not optimistic, but there is no need to be too pessimistic. It is believed that the ability of the state and the government will help the textile industry grow and expand, so that the enterprises in the textile industry will be well managed, and enterprises should pay close attention to the market situation of the state and make timely adjustments.