China’s garment and footwear industry is likely to be one of the biggest beneficiaries of the Belt and Road Initiative (BRI), with hubs and transport links opening up supply chains for new markets and improving existing There are routes.
The latest research report from “FitchSolutions” points out that Russia, Vietnam, and Hong Kong, China will benefit from improved supply networks and will be conducive to Chinese companies expanding their access to Outputs into these markets or opportunities to enter these markets for the first time.
But the report also pointed out that there are potential opportunities to promote the growth of the export business of small partners, such as Ethiopia, Uzbekistan, Hungary, and Slovenia, all of whom are members of the Belt and Road Initiative. One Road Initiative (BRI).
In 2013, Chinese President Xi Jinping proposed the “Belt and Road Initiative” for the first time, integrating the “Silk Road Economic Belt” (Silk Road Economic Belt) and the “21st Century Maritime Silk Road” (21st-century Maritime Silk Road) is integrated into the Global Trade and Development Initiative.
The Belt and Road Initiative links the dynamic economic circle of East Asia with the developed economies of Europe, giving countries along the route the opportunity to derive from the initiative. benefit from the huge economic potential reached.
These two routes are:
˙”Silk Road Economic Belt” (Silk Road Economic Belt) ( Referred to as “the Belt”), it connects China to the Persian Gulf and the Mediterranean through Central and West Asia, and connects Southeast Asia, South Asia and the Indian Ocean to China.
[Route description: Starting from China (*The core area includes Xinjiang, Qinghai, Gansu, Shaanxi, and Ningxia in the northwest, and Chongqing, Sichuan, Guangxi, and Yunnan in the southwest) , along the land Silk Road with Europe as its end point: first, it reaches Europe through Central Asia and Russia; second, Xinjiang passes through Pakistan to the Indian Ocean, Central Asia and West Asia, and reaches the countries along the Persian Gulf and Mediterranean Sea. 】
˙”21st-century Maritime Silk Road” (referred to as “all the way”), from the coast of China to Europe, passing through the South China Sea and A route in the Indian Ocean from the coast of China to the South Pacific through the South China Sea.
[Route description: China crosses the South China Sea from coastal ports to the Indian Ocean, extending to Europe, or crosses the South China Sea from China’s coastal ports to the South Pacific. The main destinations of the 21st Century Maritime Silk Road include: Quanzhou, Fuzhou, Guangzhou, Haikou, Beihai, Hanoi, Kuala Lumpur, Jakarta, Colombo, Kolkata, Nairobi, Athens, and Venice. ]
According to data from FitchSolutions, the Belt and Road Initiative is approaching critical mass, with 131 countries currently participating in the initiative, compared with only 68 in 2017. indivual. China is also seeking to win over other major European powers, including the United Kingdom, France, and Germany.
As part of the Belt and Road Initiative, the upgrading of infrastructure built to provide new market potential is about to be achieved and will enhance the diversification of supply chains and trade activities. The time and cost spent will be greatly reduced.
In particular, the credit and macro intelligence solutions provider believes that the Belt and Road Initiative offers some of the greatest opportunities for China’s small and medium-sized consumer goods manufacturers because it Providing them with opportunities to enter new markets and take advantage of reduced transportation costs to ensure they remain competitive.
As China’s economic growth cools, it is especially important for local Chinese manufacturers to find other ways to maintain their business growth.
Textile/Clothing Links
China is the world’s largest manufacturer of ready-made garments and footwear, with exports reaching US$193.3 billion in 2018, accounting for almost 1/3 of the world’s total garment and footwear exports.
However, China’s textile and garment industry is under pressure from other Asian countries that offer cheaper labor. But cost savings from more shipping options and more reliable shipping links through the Belt and Road Initiative will help offset some of the costs of overall garment manufacturing and ensure China retains its position as a major sourcing point for the global fashion industry. status.
In addition, the main importing countries of China’s textile raw materials are also South Asian countries (India, Bangladesh, Pakistan) or Southeast Asian countries (Philippines, Vietnam, Cambodia) along the route of the “Belt and Road Initiative”.
As part of the Belt and Road Initiative’s major garment manufacturing hubs in China, several transportation schemes have been developed or are being developed that will facilitate network connectivity between these hubs and export partner countries.
(1) Guangzhou-Shenzhen-Hong Kong Express Rail Link: Connects the garment manufacturing center in Guangzhou with Hong Kong, which is China’s main hub for garments and footwear Export destination.
(2) Incheon-Weihai Undersea Tunnel: Connecting Shandong, China and Incheon, South Korea. Shandong Province is geographically close to the garment manufacturing base of Jiangsu Province.
(3) Europe-Western China International Transit Corridor Project: from Lianyungang City, Jiangsu Province to St. Petersburg, Russia.
(4) Moscow-Beijing High Speed Rail: Promote connectivity between the two major consumption bases and transportation hubs.
Export growth options
In addition to China’s top ten garment and footwear export markets (the United States, Japan, Germany, Hong Kong, the United Kingdom, Russia, South Korea, Vietnam, the Netherlands, France), Fitch Solutions said that the Belt and Road Initiative also provides opportunities to promote the export of ready-made garments and footwear to small partners such as Ethiopia, Cote d’Ivoire, Uzbekistan, Hungary, and Slovenia.
Witness that Ethiopia has the strongest growth in the last group, with China’s imports of garments and footwear growing from US$253.6 million in 2014 to US$538.5 million in 2018.
Ethiopia connects the capital city of Addis Ababa and the port of Djibouti (Dijbouti) through railways, linking to the “One Belt, One Road” initiative. Dijbouti is part of the Maritime Silk Road and therefore provides a transport network to the port of Guangzhou. In addition, the Mekelle Dry Port in Tigray State, which is in the planning stage, will further improve logistics services connected to the railway.
