Innovation and Development add momentum to Foreign Trade of Textile and Garment

Issuing time:2018-11-10 11:49

In recent years, as a result of the domestic comprehensive cost enhancement and the productivity shift influence, our country textile clothing export growth rate assumes the downward trend, the international market share is also gradually reducing.

In 2017, China's textile and garment exports reached US $268.6 billion, a cumulative drop of 10 per cent compared with the peak export in 2014.

According to the world trade organization, china accounted for 36.7% of global textile and apparel trade in 2016, the first decline in 20 years.

In 2017, China's textile and apparel import market shares in the United States, the European Union and Japan were 36.3%, 33.8% and 60.8%, respectively, which were 2.4, 4.4 and 10.4 percentage points lower than those five years ago.

In the first eight months of this year, China's textile and garment exports maintained a steady trend, with exports of US $181.4 billion, up 3.7 percent from the same period last year.

Of this, $78.74 billion was for textiles, up 9.5% from the same period last year, and $102.67 billion for clothing, down 0.3% from the same period a year earlier, the fourth consecutive year of decline since 2015.

First, exports to the traditional markets and the "Belt and Road" countries have maintained steady growth.

In the first eight months, exports to the European union grew by 1.7%, to the United states by 8%, and to japan and Hong Kong by 2.9%.

Exports to countries along the "Belt and Road" route grew by 5 per cent.

Among emerging markets, china's exports to ASEAN rose by 12.3%, to Latin America by 7.6% and to Russia by 3.9%.

Export growth fell mainly in the Middle East (-14.3 per cent), Africa (-1.5 per cent) and South Korea (-3.6 per cent).

Second, the export structure accelerated to the upstream semi-finished product transfer.

In the first eight months, the proportion of textile and clothing export of our country is 43% and 57% respectively. Although the export of clothing still exceeds textile, the proportion of clothing decreases year by year.

According to this speed of development, it is estimated that within a few years, the proportion of China's textile exports is likely to exceed that of clothing.

The trend of textile and clothing export differentiation also reflects the new changes of China's textile and clothing export competitiveness pattern.

Textile upstream products competitiveness, and labor-intensive clothing products due to low-cost countries competition, showing a downward trend year by year.

Third, with the exception of Guangdong, the growth of other major export areas is good.

In the first eight months, Zhejiang's exports grew by 10.7%, and continued to lead the country. Jiangsu, Shandong, Fujian, and Shanghai grew by 6.1%, 10.2%, 6.0%, and 4.7% respectively. Only Guangdong saw a large decline of 10.9%.

Clothing accounts for 70% of Guangdong's exports, and the downturn in clothing exports has led to a decline in its overall exports.

Fourth, driven by the surge in garment imports, textile and garment imports maintained growth.

In the first eight months, china's textile and clothing imports totaled 17.58 billion us dollars, up 10. 8% from the same period last year, with textile imports increasing by 8. 4% and apparel imports by 16. 7%, leading the overall textile and clothing imports to maintain a relatively rapid growth

Fifth, China's share of the international market has dropped markedly.

In the first seven months, the import market share of China's textile and garment products in the United States was 34.2%, a decrease of 0.6 percentage points over the same period last year, and the market share of textile products was 40.4%, an increase of 0.4 percentage points over the same period last year; Clothing shares were 32.1%, down 1% from the same period last year.

In the first half year, the import market share of china's textile and garment products in the European union was 29. 7%, a decrease of 1. 5% year-on-year, of which the textile market share was 34. 8%, an increase of 0. 05% year-on-year, and the clothing share was 28% 2 percentage points lower than the same period last year; For the first seven months,

The import market share of china's textile and garment products in japan is 57. 2%, down 2. 9% year-on-year, of which the textile market share is 53. 1%, down 1. 1%, and the clothing share is 58. 4% It was 3.5 percentage points lower than the same period last year.

Although China's textile and garment exports have shown overall stability since last year, judging from the development trend and characteristics of the textile and clothing industry in recent years, there is greater uncertainty in the international political and economic environment, and Sino-US trade frictions are constantly escalating.

Regional competition has become increasingly fierce, low-cost countries have emerged, global raw material prices have fluctuated greatly, Chinese enterprises have accelerated their overseas distribution, and the pressure for transformation and upgrading of domestic industries has increased.

China's textile and garment exports will face a small fluctuation in the long run, and the international market share, especially the clothing market share, will slowly decline in the new normal.

A recent survey conducted by the China Chamber of Commerce of Textile importers and exporters shows that the impact of trade friction between China and the United States has gradually emerged, and that exporters are generally worried about the uncertainty of the trade environment.

In the current situation of rising costs, the United States to impose tariffs is like adding insult to injury, not only will seriously erode corporate profits, but also may lead to orders and industrial transfer to other countries at an accelerated pace.

Faced with the escalating threat of trade friction, Chinese textile and garment enterprises actively take measures to deal with it.

The first is to actively participate in the US "301" legal investigation process, urging importers to participate in public deliberation procedures and hearings in the United States, and strive to exclude products of interest from the tax list.

The China Chamber of Commerce for the Import and Export of Textiles also sent a working group to speak at the hearing held by the US Trade Representative's Office on 23 August to speak for the Chinese industry and safeguard its interests.

The second is to speed up the pace of exports, avoid the risk of taxation, as far as possible to control the loss in the minimum range.

Third, strengthen international cooperation and distribution of production capacity, take the initiative to use resources in other countries for production, and strengthen the control of the supply chain.

Fourth, speed up the process of transformation and upgrading, increase input in equipment and technology, improve production efficiency, product quality, and market reaction speed, and increase the added value of products.

Enhance the ability of design research and development, supply chain management, resource integration, brand building and international marketing network expansion to absorb the loss of profits caused by taxation.

Fifth, it is necessary to further implement the strategy of market diversification, step up efforts to develop the markets of emerging markets, especially those of countries along the "Belt and Road" route, reduce dependence on the US market, and avoid the risks of a single market.

Although faced with various difficulties, but this is the industry in the process of transformation and upgrading of the travails of the inevitable.

The current slowdown in China's textile and garment exports is a structural adjustment in the new period, and we should treat it with a common heart.

The "Belt and Road" initiative will effectively strengthen China's core position in the textile and apparel supply chain in Asia and even the world. The transformation and upgrading of "made in China" and the leap from OEM to ODM and OBM are the fundamental basis for China's textile and apparel to maintain its competitive advantage in export.

The structural change of the international market pattern also provides Chinese enterprises with new opportunities.

The future development of China's textile and garment industry should closely revolve around the main melody of "Belt and Road" construction and the transformation and upgrading of the industry, and adhere to the role of innovative manufacturing and green development in perfecting the industrial chain, integrating the supply chain, and upgrading the value chain.

Promote the continuous upgrading of the industry, seeking to take the specialization, differentiation, Lean and internationalization of the development of the road.

Although the textile and garment industry is a traditional industry, as long as it merges with the new kinetic energy, under the future competitive pattern, the foreign trade industry of Chinese textile and garment will stride forward to the high quality development and usher in the new splendor.


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