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Sino-US trade friction accelerates the upgrading of our textile industry
The Sino-US trade friction has obviously hindered our textile exports. While export costs are increasing, we are also gradually eliminating outdated production capacity to accelerate industrial upgrading and transformation. The Sino-US trade friction will accelerate the adjustment of my country’s textile and apparel export structure and the industrial chain to Southeast Asia. Waiting to transfer. In the first quarter, my country's textile and apparel exports were 385.21 billion yuan, a year-on-year increase of 3.3%. Among them, textile exports were 183.87 billion yuan, an increase of 9.3%; clothing exports were 20.134 billion yuan, a decrease of 1.6%. 'In January this year, the export volume of textiles and apparel hit a new high since September last year. Affected by the Spring Festival factor and the'export rush', the export volume of textiles and apparel was slashed in February and hit a new low since February 2017. In March, textile apparel The strong export has reversed the double-digit decline in exports in the first two months, and strongly spurred the overall export growth in the first quarter and showed a slight increase.' Zhongyu Information analyst Yu Xiaohong said that exports fluctuated sharply in each month of the first quarter. However, the overall textile and apparel exports are still showing a good development trend. 'Under the background of the global economic and trade slowdown, China's textile and apparel exports will continue to be under pressure. In the first quarter, overseas buyers waited and watched. Some large international buyers adjusted their strategic layouts and required Chinese manufacturing and processing companies to move part of their production capacity to Southeast Asia in advance. Yu Xiaohong said that in the future, clothing exports may continue to decline, and the corresponding supply chain raw materials and supporting textile exports are expected to surpass clothing exports. At present, my country's textile and apparel market is relatively dependent on exports. According to incomplete statistics, my country's textile and apparel exports exceeded US$270 billion in 2018, while the domestic retail sales of textiles and apparel was around US$200 billion. The United States is my country's largest exporter of textiles and garments, of which pure cotton textiles and garments exported to the United States account for about 17% of my country's total cotton textiles and garments exports. 'The United States imposes tariffs on textiles and garments, which will directly increase the export cost of my country's textiles and garments, and weaken the price competitiveness of related products.' A related analyst of Zhongyu Information said that in recent years, the textile and garment industry in Southeast Asian countries, mainly Vietnam, has developed rapidly , Will most likely squeeze some of China’s textile and apparel market shares exported to the United States in the future. The escalation of Sino-US trade friction has also directly accelerated the devaluation of the renminbi. In the one month since Trump announced the tax increase in April, the RMB exchange rate against the US dollar has depreciated from 6.7 to around 6.9. Since the beginning of the Sino-US trade friction in March 2018, the exchange rate of the RMB against the US dollar has depreciated from 6.3 to around 6.9. Relevant analysts of Zhongyu Information reminded that currency depreciation can temporarily benefit product exports. However, the previous sharp depreciation of Argentina, Turkey and other countries’ currencies against the US dollar triggered a financial crisis, leading to a deterioration in the economic situation, and the long-term impact of rapid currency devaluation on the market should not be underestimated. . At present, the structural adjustment of my country's textile and apparel industry is accelerating. According to data from the National Bureau of Statistics, the gross profit of my country's textile and apparel industry dropped from 12.14% at the end of 2012 to 10.16% at the end of 2018. Under the general trend of rising labor costs and environmental protection costs in the textile and apparel industry, gross profit margins have shown a continuous decline. In 2018, gross profit margins have dropped to the lowest point in the past 10 years. The number of textile enterprises above designated size with an annual revenue of 20 million yuan has also dropped from more than 22,000 in March 2011 to more than 19,000 at the end of 2018. Fierce competition has accelerated textile companies’ “going to small and staying large” and factories. The trend of relocation.
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