Analysis Of The Overall Situation And Development Trend Of China'S Textile And Apparel Industry

China

The import and Export Chamber of commerce is China's textile industry.

Import and export industry leading national industry organization, a total of more than 12 thousand member enterprises, covering textile fiber, yarn,

The production and import and export business of household textiles, industrial textiles and accessories, the import and export volume accounts for about 70% of the total textile imports and exports.

The development of China's textile and apparel trade in 2017

According to the world clothing and shoe net, in 2017, with the revival of the global economy and the steady growth policy of China, China's textile and garment exports continued to return to the good temperature. After two consecutive years of decline, they resumed growth again.

Textile and apparel exports totaled 268 billion 600 million US dollars for the whole year, an increase of 0.8%.

Among them, textile exports amounted to 110 billion 490 million US dollars, an increase of 4.2%, and clothing exports of US $158 billion 110 million, a decrease of 1.4%.

From the point of view of imports, China's textile and apparel imports totaled 24 billion 550 million US dollars for the whole year, an increase of 5.3%, reversing the decline in imports for three consecutive years since 2014.

According to the customs statistics of China, in 2017, there were 9.9 textile and garment export enterprises in China, and exported 4 million 740 thousand tons of yarn, 44 billion 600 million meters of fabrics, 68 billion 500 million suites of clothing, textile and garment enterprises to 3.4 countries in 234 countries and regions, and imported 2 million 630 thousand tons of yarn, 2 billion 400 million meters of fabric and 1 billion 500 million pieces of garments from 159 countries and regions of the world. This set of data tells us that China, as the world's largest producer and trading country of textile and clothing, has been playing a decisive role in the world textile trade.

China's textile and clothing exports mainly have the following characteristics:

First, the upstream export situation is better than downstream products.

In 2017, China's yarn exports increased by 7.8%, fabric exports increased by 4.1%, manufactured exports increased by 3.5%, and garment exports dropped by 1.4%.

The proportion of garments in exports is 59%, which is 8 percentage points lower than that of ten years ago. The competitiveness of China's downstream clothing exports is weakening, and the competition pressure from neighboring countries is still great. The export growth of upstream products is largely benefited from other garment producing countries, and the demand for Chinese yarn fabrics is growing due to incomplete industrial chains.

Two, the number of main products has increased, but export prices have declined.

In 2017, the export volume of cotton, chemical fiber and non-woven fabrics increased by 2.1%, 6.6% and 8.9% respectively, but the prices decreased by 2.2%, 5.2% and 5.6% respectively.

The export volume of knitted apparel and woven garments increased by 2.9% and 2.7% respectively, but the export prices decreased by 8.5% and 1.6% respectively. The increase in the export volume of most products reflected the steady recovery of demand in the international market. On the other hand, it also showed that China's textile and clothing products still had strong international competitive advantages, and the reasons for the decline in export prices were:

First, raw material prices remained stable and cotton prices narrowed.

Two, the international market parity, fast fashion brands prevail, retail prices decline year by year;

The three is the competition of other low-cost countries, forcing our enterprises to increase production efficiency and reduce costs, so as to avoid excessive loss of market share.

Three, the export of traditional markets has maintained steady growth, and exports to emerging markets have gone up and down.

China's exports to the European Union, the United States and Japan remained basically above 1% in 2017. It can be said that the basic stability has been maintained. Exports to ASEAN, the United States, Russia and other regions have increased by 4.5%, 20.3% and 6.7% respectively. The export of 64 countries along the "one belt and one road" has increased by 2.9%, but exports to the Middle East countries have dropped by 8.5%.

The four is the emerging trade format to stimulate export recovery.

In 2017, China's processing trade exports decreased by 5.4%, and border trade exports increased by 18.8%. The emerging market formats such as cross border e-commerce market procurement and trade grew rapidly, becoming a new bright spot in the growth of textile and garment trade. The net export of cross border e-commerce comprehensive test area has more than doubled, and the market purchase trade export has increased by more than 30%.

Five, the export of Jiangsu and other provinces is positively pulling, and Xinjiang and Hebei are among the top growth figures.

In the top five export regions of 2017, the export growth of Jiangsu and Shandong in Zhejiang, the export of Guangdong and Fujian declined, and the export growth rates of Xinjiang, Hebei and Guangxi were 15%, ranking the highest in the country.

Although the overall export pattern of this year is going to be a good trend, the development trend and characteristics of textile and garment industry in recent years show that there is uncertainty in the international economic environment, and international competition is becoming increasingly fierce. Low cost countries are rising rapidly, global raw material prices fluctuate, trade protectionism is rising, the layout of Chinese enterprises is speeding up, and the pressure of domestic industry pformation is increasing.

Two, facing major challenges

First, exchange rate fluctuations cause losses in profits.

The sustained and rapid appreciation of the RMB against the US dollar in the third quarter of 2017 has an impact on the textile and garment foreign trade industry. Enterprises face short-term losses in settlement and profits, and face greater pressure in the medium and long term.

In the first half of 2017, only 46 billion yuan was lost in the settlement of foreign exchange in the first half of the year. At the same time, it was affected by the exchange rate. The overall price advantage of the industry in the international market was further weakened, which brought great pressure to the medium and long term orders.

Two, the external situation is grim and the number of trade frictions increased.

In 2017, relief cases for textile and garment industry still showed an active and upward trend.

A total of 11 new cases were set up throughout the year, involving 510 million US dollars in new cases, an increase of 22% over last year.

The case involves many countries and regions such as the United States, India, Columbia, Turkey and Indonesia.

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The form of trade remedy mainly presents the following characteristics:

First, the case is mainly concentrated in developing countries and chemical fiber products.

In 2017, excepting the case of the United States, the rest were cases from developing countries.

Two, India launched a relatively large number of cases. Among the 11 cases, 7 cases were initiated by India, and the amount involved was large and the scope of influence was extensive.

Three, the problem of low price tipping is more serious. In the anti-dumping cases, some low prices tend to occur more frequently in South America and other countries, which are more likely to cause trade remedy cases.

Four, the forms of trade remedy cases are more diversified. In addition to the traditional anti-dumping investigations, the United States' double anti cases, Turkey launched anti circumvention cases, and put forward requirements for the professionalism of our industry.

The three is the rising labor costs and the shortage of labour.

Over the past few years, the average monthly minimum wage in China has increased by more than 15% in recent years. Our labor cost has increased three times in the past ten years. At present, the labor cost of textiles in the coastal areas exceeds 4000 yuan per month, 5 times that of the low cost countries around the world. Although the growth rate of workers' wages has slowed down in the second half of last year, the high cost of employment is still the biggest pressure on the daily operation of our enterprises.

Four, environmental protection has great impact on the textile industry.

There are two symbolic things worthy of our attention. Since January 1st this year, the environmental protection tax law of the People's Republic of China has been formally implemented, and the cost of environmental protection has changed from fees to taxes. The market rules for pollution reduction, emission reduction and emission reduction have been established. Two, the national carbon emissions trading system has officially started, the pollutant discharge permit system has been popularized throughout the country, and the price of environmental protection elements has been incorporated into the production system, and the responsibility asset has entered the fast lane.

These changes require that the industry must change its original development mode and achieve higher quality development in terms of energy conservation and emission reduction.

Five, China's share in the international market continues to decrease.

According to WTO statistics, in 2016, China accounted for the first time the global textile and garment trade volume declined for the first time in 20 years, 36.7%, 1.8 percentage points lower than that of last year, of which textile exports accounted for 37.2% of the world's total, 0.2 percentage points lower than the previous year, clothing exports accounted for 36.4% of the world's share, and a decrease of nearly 3 percentage points, and China's share in the world's main markets continued to decline.

In 2017, China's market share in the European Union, the United States and Japan dropped by 4, 2.5 and 10 percentage points respectively over five years ago.

Three. New opportunities for future development

First, the "one belt and one way" initiative will effectively strengthen China's core position in the Asian and global textile and apparel supply chain.

With the steady progress of the "one belt and one way" initiative, the company has effectively promoted the investment and trade cooperation between the textile and garment industry and the countries along the belt.

According to the Ministry of Commerce statistics, foreign direct investment in China's textile and garment industry totaled 8 billion 830 million US dollars in the past 2003-2017 years, with an average annual growth rate of nearly 20%, accounting for 7.61% of the total foreign direct investment of manufacturing industry. In 2017, foreign investment in garment industry decreased significantly, and the total overseas investment amounted to 1 billion 180 million US dollars, down 55.5% over the same period last year.

With the deepening of the capacity cooperation between China and neighboring countries, the Asian region has formed a complete industrial chain with China as the center, which has promoted the export of Asian countries to the developed countries and China's huge consumer market, and promoted the trade of yarn and fabric within Asian countries.

In 2013, ASEAN first surpassed Japan to become China's third largest textile and garment export market. Currently, according to the statistics of the country, Vietnam and Bangladesh are China's first and second largest exporter of yarn and fabrics, and Vietnam first became the country's largest source of textile and garment imports in 1916.

While China's exports are decreasing, we should also see that a considerable part of the export growth of the neighboring countries is created by China's "go global" enterprises, and the supply chain and orders are still in the hands of Chinese enterprises.

Two, the central and western regions such as Xinjiang and Henan actively undertake industrial pfer in the eastern region, providing strong support for the textile and garment manufacturing industry.

In order to ensure the steady development of China's foreign trade, in 2016, the Chinese government introduced the "package package" policy to encourage the processing trade industry to shift from the eastern coastal areas to the central and western regions in 2016. In Xinjiang and Henan, with the advantages of regional cotton flower resources and labor, and preferential policies, the excellent location became a hot spot for domestic textile enterprises. The average annual growth of the textile industry in the past five years has reached 50%, and the proportion of investment in the western region has reached as high as 37%.

Last year, Xinjiang's textile and garment exports increased by 21.7%, showing a good development prospect.

The three is the fundamental basis for the pformation and upgrading of "China made" to maintain the competitive advantage of China's textile and clothing exports.

In the face of downward pressure on exports, the internal driving force of enterprise pformation and upgrading has gradually increased.

Through intelligent manufacturing, industrial chain integration and brand building, the competitiveness of the industry has been effectively enhanced, and the traditional industries have been greatly improved, and China made 2025 has been implemented in depth.

The textile industry is undergoing a deep pformation from "big" to "strong", and intelligent manufacturing has become an important driving force for industrial upgrading.

By accelerating the replacement of machines and the creation of intelligent factories, the textile industry has comprehensively improved the level of production efficiency, product quality and intelligent manufacturing, realized the benign interaction between effective supply and consumption upgrading, and consolidated the competitive advantage of the market.

In addition, Chinese enterprises have intensified their efforts in design and brand in recent years, and have completed the pition from OEM to independent design, aiming at building their own brands.

Four, we should speed up the construction of bases, constantly highlight the location advantages and create regional brands.

It is an important task for the Chinese government to promote the development of foreign trade in 2017.

At present, there are more than 40 textile and garment foreign trade pformation and upgrading bases in China, which provide strong support for China to maintain the status of the world's largest textile and garment export.

In the future development, we should give full play to the leading role of the leading enterprises in the development of the base, gradually improve the industrial chain, form the advantages of special products, speed up the construction of intelligent factories, enhance the capability of design and research, enhance the awareness of environmental protection, and create a regional brand.

The five is the structural pformation of the international market pattern, which provides new opportunities for Chinese enterprises.

At present, under the impetus of the new technology wave, the international textile and apparel consumption and market structure has undergone structural changes. The Amazon business giant has been developing rapidly, and the traditional retail industry has encountered enormous challenges. Fast fashion and even fast fashion brands are rising rapidly. The niche designer brand and custom brand are rising, the scale of cross-border e-commerce brand is expanding rapidly, consumer preferences and buying behaviors are changing rapidly, orders are personalized, customized, fragmentation trends are obvious, and moral procurement is prevailing. All these have put forward higher requirements for suppliers' rapid response capability, resource integration capability and social responsibility fulfillment capability, and have provided new opportunities for Chinese enterprises to gain an advantage in international competition.

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The six is the huge potential and consumption upgrading of China's domestic market.

In 2016, China surpassed the US for the first time and became the world's largest apparel retailing market.

According to the National Bureau of statistics, in 2017, the retail sales of clothing, shoes and hats and textile products above the limit reached 14 thousand yuan, an increase of 7.8% over the same period last year, and the growth rate increased by 0.8 percentage points in three years, 3.8 times more than ten years ago.

In 2017, the per capita clothing consumption expenditure of residents was 1238 yuan, an increase of 6.8% over the same period last year. It is basically the same as China's per capita GDP, with a per capita consumption of less than 200 dollars, and there is still a lot of room for the level of more than 1000 US dollars from developed countries.

After China's accession to the WTO, imports of textiles and clothing, especially clothing and other end products, maintained a rapid growth. The import of Chinese clothing increased from 1 billion 200 million US dollars in 2001 to US $7 billion 810 million in 2017, a cumulative increase of 4.9 times. The proportion of textile and clothing imports increased from 8.8% to 29.2% in 2001. According to the World Trade Organization statistics, China is not only the world's largest textile exporter, but also the importer of the world's third largest textiles and the seventh largest garment importing country.

Since December 1, 2017, the Chinese government has temporarily established import tariffs of 187 tariff labels for consumer imports, including 26 tariff codes for clothing and home textiles, such as men's suits, coats, cashmere sweaters, cashmere scarves and other import duties, ranging from 14% to 25% to 5%-10%, falling to 9-15 percentage points. This move will promote China's import growth.

General secretary Xi Jinping announced in May 2017 that the Chinese government held the first international import fair in Beijing in May 2017. This is a major move for China to open up the market. It is conducive to expanding imports and promoting balanced development of foreign trade. It is an open platform for countries in the world to display their image and conduct international trade. It is also an international public product that China promotes the construction of "one belt and one road" and promotes economic globalization. At that time, the China Textile Import and Export Chamber of Commerce will actively participate in the preparations and organization of the import fair, providing convenience and help for the entry of world textile products into the Chinese market.

The future development of China's textile and garment industry should focus on the main theme of the "one belt and one way" construction and industry pformation and development, and innovate the development mode in improving the industrial chain, integrating the supply chain and upgrading the value chain, so as to promote the upgrading of the industry and seek the development path of specialization, differentiation, lean and internationalization.

Although textile and clothing are traditional industries, as long as the new kinetic energy is integrated, traditional industries will also play new gold mines.

More interesting reports, please pay attention to the world clothing shoes and hats net.