How to achieve higher than expected growth?Details of China’s textile and apparel foreign trade data in 2020!

china's textile and garment trade data in 2020 1
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In 2020, the sudden outbreak of the new crown disease had a great impact on the economy and trade pattern of all countries in the world, disrupting the rhythm of China’s textile and garment production and trade, and causing the export to fall into a trough for a time.
In the face of the outbreak, the Chinese government responded quickly, made effective arrangements and actively took prevention and control, winning the battle against the epidemic in the shortest possible time.
The vitality of the domestic market has been energized, and business confidence has been gradually restored. All manufacturers and foreign trade enterprises have worked together to strengthen coordination between the upstream and downstream industrial chains, ensure unimpeded supply chains, and open up channels for export sales, thus ensuring that foreign trade for the whole year grew against the trend.

As a key export commodity, textile and garment withstood the huge impact brought by the epidemic. With the help of masks and other epidemic prevention materials, the annual export achieved an unexpected growth, becoming an important driving force for the growth of national trade in goods.
In 2020, the total foreign trade of China’s textile and garment was US $319.88 billion, up 8% year-on-year, accounting for 6.9% of the total trade in goods, of which the export was US $296.23 billion, second only to the historical peak of US $298.49 billion in 2014, up 9.1% year-on-year, accounting for 11.4% of the national export in goods trade, and the import was US $23.65 billion, down 4.1%.
The accumulative trade surplus was US $272.58 billion, accounting for 51% of the country’s trade surplus in goods and an increase of 10.4% over the same period last year, contributing 1 percentage point to the increase of the country’s overall export in goods trade.

In 2020, China’s foreign trade of textile and garment will show the following characteristics:

(1) Exports dropped sharply in the first quarter and rebounded gradually from the second quarter.

Influenced by the epidemic, the production and logistics of various parts of China were severely disrupted after the Spring Festival, and a large number of labor force were stranded in the countryside during the long holiday, which prevented them from returning to work in time. The textile and garment production and export were severely impacted. In the first quarter, the cumulative export was only 46.35 billion US dollars, down 17.7% year on year.
In the second quarter, to effectively curb domestic outbreak, the production of basic returned to normal, but foreign outbreak began large-scale outbreak, the main market customers begin to cancel, cut orders or ask for late delivery, lead to export link again blocked, traditional commodities export all appear to drop sharply, yarn, fabric and needle woven clothing in the quarter fell by 47.6%, 38.7% and 20.8% respectively.
However, due to the serious shortage of anti-epidemic materials such as masks caused by the spread of the epidemic abroad, the export of masks (included in textiles), which previously accounted for a small share of the total, increased dramatically, rapidly driving the overall export of textiles to achieve a 63% growth in that quarter.
From the third quarter to the fourth quarter, with the alleviation of the epidemic situation abroad and the availability of supplies, the overall export growth of textiles, including epidemic prevention materials, fell, with an increase of 44.3% and 16.5% respectively in the third and fourth quarters.
With traditional western holidays such as Thanksgiving, Christmas, New Year’s day of clothing, home textile products and other consumer goods demand picks up, as well as southeast Asia, South Asia, etc. My main rival industry chain, affected by the epidemic situation of supply chain can not meet the demand of external market and the order part transfer, return to China, the export of clothing, home textile products began to rebound, in the fourth quarter of needle woven apparel and home textile products export rallied, yarns, fabrics decline narrowed.
The major category of commodity textiles has realized growth for 9 consecutive months since April, while clothing has realized a reversal since August, realizing growth for 5 consecutive months to the end of the year.

(2) China’s exports to all key markets have increased, and its market shares in Europe, the United States and Japan have recovered.

The export of textile anti-epidemic materials to the EU has increased rapidly, and the textile and garment trade between the UK and China has become closer after Brexit.

In 2020, China’s total export to the 27 EU countries (excluding the UK) reached US $53.97 billion, up 34.4%, of which the export of textile products increased by 130%, mainly driven by epidemic prevention materials. The export of textile epidemic prevention materials (according to 8-digit HS code statistics) reached US $21.89 billion, accounting for 40.6% of the total export to the EU, an increase of more than eight times compared with the same period last year.
Clothing, a traditional bulk export, fell 3.7 percent.

The UK officially left the EU on January 30, 2020. With the certainty of this regional uncertainty, the trade between the UK and China has been further developed. In 2020, the total trade in goods between China and the UK will increase by 7% year on year, among which China’s export will increase by 16.3%.
In the field of textile and garment, China’s annual export to the UK was US $12.85 billion, with an increase of 83.3%. The high growth was mainly driven by epidemic prevention materials, but the growth rate of traditional bulk commodity knitted garments was also as high as 31%. The UK’s position in the single market of knitted garments exported from China also surpassed Hong Kong and Germany to rank the third.

Exports to the United States first fell and then rose, with epidemic prevention materials becoming the biggest highlight.

The United States is the most severely affected country in the world and the single largest export market for China’s epidemic prevention materials.
In 2020, China’s export of textiles and garments to the US was US $55.38 billion, up 22.6%, of which US $21.59 billion was exported of textile epidemic prevention materials (according to 8-digit HS code), accounting for 39% of the total export to the US, a year-on-year increase of more than four times.

In the middle of 2020, the United States experienced frequent disturbances and unexpected events, but the fundamentals of consumer demand were still stable. China’s export to the United States showed a characteristic of declining first and then rising: the export volume declined by nearly 30% in the first quarter, then picked up quarter by quarter, and the growth rate reached more than 30% in the second and third quarters, and reached a peak of 38% in the fourth quarter.

Exports of traditional commodities to the US fell significantly: yarn and fabrics were down 21.6 per cent and 16 per cent respectively, knitted garments were down 16.5 per cent and only home textiles were up 3.5 per cent.

ASEAN has become the only region where China’s garment exports have increased. There is still huge space for bilateral cooperation after the epidemic.

Drived by the bilateral trade agreement between China and ASEAN, economic and trade cooperation between China and ASEAN has developed rapidly. In 2019, ASEAN has surpassed the United States to become China’s second largest trade partner in textile and apparel.
In 2020, due to the decrease in trade flows and the deviation of epidemic prevention materials data, the bilateral trade volume of textile and garment between China and ASEAN lagged behind the United States again, with a cumulative value of 46.63 billion US dollars, an increase of 0.65%.
China’s export to ASEAN reached US $39.8 billion, up by 1.9%, among which the export of textile products decreased by 2.2% and the export of apparel increased by 14.1%. China is the only region in China’s key markets that realized the growth of apparel export.
Exports of yarn and fabric of bulk commodities decreased by 24.6 percent and 12.1 percent, respectively, while knitted garments increased by 19.2 percent.

As my main competitor in the world, ASEAN has taken the textile and garment industry as its key development industry for a long time, deepened its efforts in attracting investment and strengthening infrastructure construction, and further extended its tentacles to the upper reaches of the industrial chain, including the fields of yarn and fabric, in order to get rid of its dependence on China for raw materials.
The foreign trade volume of ASEAN textile and garment is increasing year by year, and the gap between ASEAN and China is narrowing rapidly. In 2017, ASEAN’s export volume was less than a quarter of China’s export volume, and in 2019, it has rapidly increased to nearly 30% of China’s export volume.
In 2020, the export of ASEAN will also be affected by the epidemic, which is likely to significantly decrease. However, its development trend will continue to improve after the epidemic. There is still huge trade potential and business opportunities between China and ASEAN.

The proportion of Japan in China’s export market has picked up slightly, and garment export prices have fallen.

During the five years from 2015 to 2019, Japan’s share in China’s export market was in a state of continuous and slow decline, which only decreased by 0.3 percentage points in the five years, ranking fourth after the European Union, the United States and ASEAN, and second in the single market.
In 2020, China’s accumulative export to Japan reached 21.93 billion US dollars, with the market share rising slightly to 7.4% and the export volume increasing by 10.3%. Among them, textile export reached 7.87 billion US dollars, with an increase of 74.5% driven by epidemic prevention materials, and garment export reached 14.06 billion US dollars, with a decrease of 8.5%.

Exports to emerging markets and countries along the “One Belt And One Road” fell slightly.

In 2020, China’s exports to emerging markets such as Africa, Latin America and countries along the “One Belt And One Road” will all decline, but the declines are not big, 1.4%, 6.5% and 5.7% respectively. The future performance of these markets is still worth looking forward to.

The market share of Chinese products in Europe, the US and Japan has all recovered.

Under the epidemic situation, industrial transfer has increasingly become the focus of the industry. According to the import statistics of major markets, the share of Chinese products in key markets of Europe, the United States and Japan in 2020 has experienced a process from decline to increase.
In the first quarter of this year, China’s share in the European Union, the United States and Japan dropped by 1.6 percentage points, 10 percentage points and 5.4 percentage points, respectively, compared with that at the end of 2019. The vast majority of China’s share was transferred to Southeast Asia and South Asia.
However, with the gradual recovery of China’s industrial production and trade order, as well as the spread of the epidemic globalization, ASEAN and other regions that formed a competitive relationship with China were caught in this situation. When China resumed production, these regions had just entered the peak period, and were also affected by the shutdown and the decline of orders.
China’s market share recovered significantly at the end of the second quarter and continued to do so until the end of the year.

According to Eurostat, the EU imported US $54.58 billion from China in January and November 2020, up 52.3%.
The share of Chinese products rose 12 percentage points to 42.9 percent from 30.8 percent in 2019.

According to the statistics of the US Department of Commerce, US imports from China in 2020 reached US $47.36 billion, up 17.9 percent, and Chinese products’ market share in the US reached 38.6 percent, an increase of nearly 6 percentage points over last year, mainly driven by textiles.

According to the statistics of Japan’s Ministry of Finance, in 2020, Japan’s import from China rose from 55.3% in 2019 to 58.76%, mainly driven by textiles, while clothing is still on a downward trend.

(3) Epidemic prevention materials became the main driving force for growth, and exports of traditional bulk commodities all declined.

And 2020, global outbreak continues to spread make I epidemic prevention materials boost export growth initiative, year-round by HS8 digit code statistics mask (diameter slightly larger) nearly $53.85 billion, up 71% from a year earlier, protective clothing, $12.7 billion, an increase of 16.8%, plus medical surgical cap, medical gloves, etc combined accounted for 25.6% of total exports, export growth for the year formed strong positive boost.

Exports of traditional commodities have all fallen under the impact of the epidemic, with exports of yarn, fabric, home textiles and knitted garments falling by 21.5 percent, 17.7 percent, 3.6 percent and 8.7 percent, respectively.
Among them, the export quantity and unit price of yarn and fabric decreased faster, while the decrease rate of knitted garments was slightly slower.

Drived by the epidemic, the export structure of textile and garment has undergone a major change in 2020. The huge growth of mask exports has led to a rapid growth of 28.9% in textile and garment exports in the whole year. The proportion of textile in the overall export of textile and garment has expanded rapidly to 52.3%, surpassing that of apparel for the first time (47.7%).

Even in the absence of the outbreak, textile and garment export commodity structure has been optimized, look from the categories of commodities, yarns, fabrics as the main textile products, total exports accounted for more than dropped 6.8% compared with 2019, and needle woven clothing as the main clothing products, total exports accounted for 2019 more, by 7.6%.
It shows that even though the export of textile and clothing conventional products all decline, the export status of textile is still rising and its share is expanding.

(4) The export share of the eastern provinces declined slightly, and the industrial undertaking effect in the central region further emerged.

In 2020, Zhejiang, Guangdong, Jiangsu, Shandong and Fujian are the top five regions in terms of textile and garment exports.
Guangdong surpassed Jiangsu again to become the second largest province in terms of exports.
The five provinces together accounted for 73.7 percent of the country’s exports, down 2.3 percentage points from last year.
The central region further showed its capacity to absorb industries. In the same year, the central region exported US $23.82 billion, accounting for 8% of the country’s total exports, an increase of 1.4 percentage points over last year.
Hubei, Anhui, Jiangxi and other provinces have achieved rapid growth.
In particular, Hubei has withstood the great pressure brought by the epidemic. Under the circumstance of a 30% drop in exports in the first quarter, it started to make efforts since the second quarter, and its annual export growth reached as high as 104%.

The export growth for the whole year was mainly driven by the eastern region (up 8.4 percent) and the central region, while exports from the western region and the northeastern provinces fell by 2 percent and 5.4 percent, respectively.
Although it did not achieve growth, in the special period, the western region and the three northeastern provinces did not experience large fluctuations, and the decline was stable in a small range, indicating that China’s coordinated regional development has made progress, and the gap between regions has gradually narrowed.

(5) The import of textiles and clothing first decreased and then increased, and the import of intermediate goods and final consumer goods did not recover growth.

In 2020, China’s textile and garment imports failed to recover due to production disruption and demand decline caused by the epidemic, as well as trade frictions between China and the United States. The total imports for the whole year were US $23.67 billion, down by 4.1%.
The decline was mainly concentrated in the first half of the year. In the first half of the year, only in February and March, the import continued to grow due to the severe domestic epidemic and the surge of donated materials from overseas, all the other months saw a double-digit decline, and the total import decreased by 9.4% in the first half of the year.
In the second half of the year, the domestic production gradually recovered, orders increased, the demand for intermediate goods picked up, and the RMB exchange rate changed from depreciation to sustained appreciation, which was conducive to the import, so that the import grew for four consecutive months from August to December, and the accumulative import grew by 4.4% in the second half of the year.

In terms of product mix, the decline in imports in the whole year was mainly caused by textiles, which totaled US $14.17 billion, down 9.8%, and garment imports US $9.495 billion, up 6.2%.

Divided by the use of bulk commodities, the import volume and price of intermediate yarn and fabric decreased by 4.2% and 11.3% respectively, while the import volume and price of fabric decreased by 28.3% and 0.4% respectively.
Imports of knitted garments, final consumer goods, increased by 0.9% on the basis of higher unit prices, but imports fell by 12.2%.
Imports of home textiles fell by 18.4 per cent.

(6) The import of cotton increased and the price fell, and the United States regained its position as the largest source country of cotton import.

In 2020, China imported 2.159 million tons of cotton, up 16.6 percent, the fourth consecutive year of growth.
From the monthly data of the whole year, the import volume showed an obvious “V” shape reversal. Since March, due to the decline of downstream demand, the import volume shrank sharply, and fell to the bottom in May, with only 70,000 tons of cotton imported in that month.
Later, with the recovery of demand, imports gradually recovered and imports expanded. In December, imports reached 355,000 tons, a monthly high in the past five years.
The average import price was US $1,651.40 / ton, the lowest in nearly 10 years.

Spurred by the agreement signed by China and the United States at the beginning of this year, cotton imports from the United States rebounded significantly, with 976,700 tons imported in the whole year, an increase of 171% over the previous year, making the United States regain its position as the largest source country of cotton imports.
Brazil and India followed, importing 618,000 and 253,000 tonnes respectively.

At the end of the domestic cotton prices continued to rise, a new annual high.

According to the monthly report of China Cotton Association, in 2020, the domestic cotton market will be impacted by the new crown epidemic, the cotton production will remain stable, the cotton reserve rotation will be carried out in an orderly way, the import volume will continue to increase, the market supply is abundant, the textile demand will gradually warm up, the cotton price fluctuations will rise, and the cotton price difference between inside and outside will increase.
China’s total cotton output in 2020 was 5.91 million tons, up 0.4 percent year on year, according to the NBS.
Textile enterprises at the end of the production and sales of two prosperous, gauze production is on the rise, the trend of the industry is good.

In December, with the domestic textile market getting better, orders in spring and summer increased, and enterprises’ enthusiasm for purchasing raw materials heated up, boosting the domestic cotton prices continued to rise;
International cotton price shock rise, the increase is lower than domestic.
At the end of December, China’s cotton price index (CCIndex3128B) was 14,963 yuan/ton, up 1,594 yuan year on year;
China’s imported cotton FC Index M averaged 83.12 cents per pound for the month, up 6.17 cents year on year.
1% tariff discount of 13894 yuan/ton, lower than the same period of domestic spot 1044 yuan/ton, internal and external cotton price difference compared with the end of last month narrowed 155 yuan.

Short-term and long-term effects of the epidemic on China’s textile and garment foreign trade

(1) in the short term caused by the surge effect will gradually fade, industrial transfer will continue the original speed and path.

The epidemic is a sudden and occasional event, which will have a stress effect on the trend of global trade in the short term. Orders will be quickly concentrated in a small number of countries and regions that have a complete industrial chain and restore production capacity in the first time. For example, in the second half of the year, orders from India once returned to China.
The purchase intention of the market also turned back to China again, making China’s share in the major markets rise quickly.

In early 2021, the global epidemic is still raging, and novel coronavirus will still coexist with humans for a long time.
However, with the advent and vaccination of a large number of vaccines, the epidemic will pass one day. It is believed that after the critical 1 to 2 years in the future have passed, the global business order, trade and investment activities will return to normal, and the trade pattern of textile and clothing will gradually return to the state before the epidemic.
One of the main trends is that the medium – and low-end textile and garment industries will continue to transfer from China, and the speed and scale of the transfer will further accelerate and expand.
The main recipients are still Southeast Asia, South Asia, and Africa and other emerging developing regions.
Judging from the data, the share of Chinese products in major markets will continue the declining trend before the epidemic.

(2) In the long run, the epidemic will promote the diversification of the international market. Developed economies will further reduce their dependence on “Made in China” products, and the competitive and cooperative relations between China and developing countries and regions will be more stable.

Instead of forging a global consensus for co-operation, the epidemic has increased mistrust and decoupling.
For the consideration of economic and industrial security, some developed countries, such as the United States and Japan, continue to introduce policies to attract industries back, promote local supply or tend to “nearby procurement”. The regionalization of industrial chain will become the main trend in the post-epidemic era.
The most prominent one is the United States. In the Obama era, “Buy American” was proposed, and a number of preferential measures such as the Manufacturing Promotion Act and tax incentives were introduced to boost the manufacturing industry in the United States.
After Trump took office, he promoted unilateralism on a global scale, strengthened the priority of American interests, and attracted manufacturing investment back to China.

Although the huge and complex textile and garment industry chain cannot be smoothly returned to the local area overnight, it will promote the United States and Japan and other countries to accelerate the layout of procurement to Southeast Asia or surrounding areas from the perspective of reducing their dependence on China.
According to the data released by the US, during the five years from 2015 to 2019, the share of textile and garment imports from China to the US dropped by 5.2 percentage points, and China’s lost share was mainly divided by Vietnam, India, Bangladesh, Mexico, Honduras and other Central and North American countries.
The 9.2 percentage points China lost in the Japanese market over the five years were almost entirely taken up by Southeast Asia and Bangladesh.
In the future, as the epidemic recedes, the supply conditions in these regions will improve. In order to recover losses, China will intensify its competition with China for the market, and the external environment China will face will be more complex and severe.

At the same time of competition, China always adheres to the purpose of expanding reform and opening up, which will further lead China to deepen cooperation with ASEAN and other countries in the construction of industrial chain and trade of intermediate goods.
In 2020, the regional free trade arrangements made great achievements: on November 15, regional comprehensive economic partnership agreements (RCEP) formally signed, members including China and the asean countries, Japan, Korea, Australia and New Zealand, 15 countries, covering 30% of the world’s GDP, population and exports, is currently the world’s largest free trade area.
In 2020, China’s textile and garment exports to RCEP countries totaled US $78.06 billion, accounting for 26.4 percent of the total.
For China’s textile and garment industry, establishing a free trade agreement for the first time with Japan, the second largest single export market, and the regional origin accumulation rules in the agreement are the most “beneficial”.
After the agreement comes into force, it will exert a positive and far-reaching influence on expanding trade scale and deepening industrial chain cooperation in China’s textile and garment industry.
In addition, China has always maintained friendly and cooperative relations with countries along the “One Belt And One Road” route. Bilateral trade has been continuously strengthened, and the trade volume of textile and garment has been growing steadily.
Many of these countries and regions received material and medical assistance from China during the epidemic. Their friendship with China has grown stronger with the ages and they will continue to maintain close exchanges with China after the epidemic. Bilateral trade will quickly recover and further expand.

(3) Increased uncertainty in trade relations with the United States.

The US Treasury Department removed China from the List of currency manipulators at the beginning of this year. On January 15, China and the US signed the first phase of the economic and trade agreement, under which the US side will reduce tariffs on products under the $300 billion List 4A to 7.5% from 15%.
China has also lowered tariffs on some goods imported from the US.
Just goodwill on both sides, the administration is on January 29th, the Mexican trade agreement, signed and issued a “1” for China’s textile industry, July release “supply chain business consulting announcement” in xinjiang, through the “xinjiang”, “entity list”, “withholding” wait for a variety of political and economic means to interfere in China’s internal affairs, depress and disrupt the normal economic activities in xinjiang, the trade between China and the United States the normal economic order and caused serious damage.

In 2020, due to the severity of the epidemic, US imports from China will increase substantially.
In 2021, with the Democratic Party coming into power, the US policy towards China will be eased and the trend of unilateralism and isolationism will change. However, the US’s long-term policy of containing China will not change, and its policy of suppressing China’s key scientific and technological products will not change.
Although textile clothing is not the key to curb product, but as China’s commodity exports to the us and China to achieve the main items of trade surplus, the United States also is bound to adopt various trade regular or irregular means textile and clothing products forming limit and containment to me, such as mexican-american and agreement, so CPTPP, in order to isolate China.
The uncertainty in bilateral economic and trade relations will further increase in 2021 and after the outbreak, posing more challenges to the normal trade of Sino-US textile and garment.

Summarize the achievements, face up to the gap and stride forward on a new journey of development

(I) Under the great epidemic test, the dominant position of China’s textile and garment industry is further highlighted.

After 30 years of development, China’s textile and garment industry has formed a vertical and complete industrial chain and supply chain foundation, become the world’s largest textile and garment industry chain center and supply chain hub, with a huge domestic consumer market.
Today, China’s total fiber processing more than 50% of the world’s proportion, chemical fiber production accounts for about 70%, textile and apparel exports account for 34% of the world, the annual output of more than 26 million tons of yarn, cloth output of nearly 40 billion meters, limited enterprise clothing consumer goods retail sales of more than 800 billion yuan, online clothing retail sales increased year by year.
In the face of the outbreak, China’s industrial chain and supply chain withstood the impact, and domestic enterprises quickly resumed production by adjusting production capacity to produce masks and protective clothing. This has made a great contribution to stabilizing global consumption and fighting the epidemic, demonstrating China’s strong institutional advantages and its ability to deal with unexpected crises.
According to data released by the Chinese Customs, from March to December 2020, China exported 224.2 billion face masks to the world, equivalent to nearly 40 face masks for every person in the world outside China, 2.31 billion pieces of protective clothing and 2.92 billion pairs of surgical gloves.
In the second half of 2020, the global epidemic once caused Southeast Asia, South Asia and other places can not accept orders, resulting in some orders back to China, to fill the supply gap in some countries and regions.
This further proves that China has a sound industrial foundation and a stable industrial structure. Its industries are highly resilient and flexible, and its enterprises are responsible and capable.
These advantages cannot be replaced or surpassed in the short term, and China’s textile and garment industry will still occupy a major position in the world for a long period of time in the future.

(2) Face up to the weaknesses of the industry and try to narrow the gap with developed countries.

1.China’s textile and garment output and export scale is huge, but the profit rate is generally not high, the overall profit level has been declining in recent years.

At present, only a small number of large and super-large enterprises with brands and independent innovation ability can achieve higher profit returns. The profit rate of most small and medium-sized textile and garment enterprises is still low, and the average net profit rate of export enterprises is only 3-8%.
The overall profit of the industry continues to fall. According to the data released by the Bureau of Statistics, from 2016 to 2019, the total profit of industrial enterprises above designated size in the textile industry decreases year by year, dropping by 50% in four years, and the total profit of the clothing and apparel industry decreases by 38.6%.
In 2020, the textile industry, driven by epidemic prevention materials, will realize a total profit of 110.540 billion yuan, with a recovery of 7.9% growth.
The total profit of the apparel industry was 64.04 billion yuan, down 21.3 percent.

2.Most enterprises survive at a small profit, the ability to resist risk needs to be improved.

With low profit margins, the industry is more sensitive to changes in external factors such as currency fluctuations.
In 2020, the exchange rate of the US dollar against the RMB experienced a “roller coaster” fluctuation, with the RMB exchange rate falling first and then rising.
Influenced by the epidemic from January to May, the RMB exchange rate depreciated violently. On May 29, the exchange rate fell to 7.1316, breaking the low point since March 2008.
Since then, with the full control of China’s Covid-19 epidemic, the full recovery of the economy and the release of liquidity by the United States to rescue the market, the RMB has resumed its upward trend.
On December 31, 2020, the dollar against the yuan central parity rate at 6.5249, 7 months, rise as high as 8.5%, more than expected, a rare, the year of the yuan against the dollar has risen by 6.47% in a year, superposition in the second half of the phenomenon of container supply shortages and rising shipping costs, lead to foreign trade enterprises, especially small and medium-sized enterprise profits bottomed out or even no profit to be made.
At the beginning of 2021, the central parity rate of USD/RMB fell below 6.5 again. In addition, the United States plans to adopt a $1.9 trillion liquidity release policy to rescue the market, and the appreciation trend of RMB will continue.
Exporters’ profits will be squeezed further.

3.The ecology of China’s textile and garment industry still needs to be optimized, and there is an obvious gap with developed countries in brand building, energy conservation and environmental protection, front-end research and development, finished product design, value chain control, and export pricing power.

We need to further promote high-quality development of the whole industry, enhance the soft power of the industry, and become a real manufacturing power.


Business Director at Shanghai Fumao Clothing Co.,LTD

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