Shandong Textile and Garment Export Analysis

According to Jinan Customs statistics, Shandong’s exports of textiles and clothing (including textile yarns, fabrics and products, clothing and clothing accessories) in the first 10 months of this year were 126.6 billion yuan, an increase of 6.3% compared with the same period last year (the same below). Among them, exports in October were 13.59 billion yuan, an increase of 8.3%.
1. The main characteristics of Shandong port textile and garment exports in October
(1) Export value continued to maintain a stable trend, falling slightly from the previous month. Since 2013, the monthly export value of textile and apparel at Shandong ports has been generally stable. In February 2014, affected by the Spring Festival holiday, the export value plummeted to 6.65 billion yuan, a new low since March 2009. Subsequently, the export value rebounded rapidly and recovered after fluctuations. Afterwards, it maintained a high and stable trend, with exports in October reaching 13.59 billion yuan, a year-on-year increase of 8.3% and a month-on-month decrease of 5.9%.
(2) General trade dominated exports, and processing trade exports declined slightly. In October, Shandong ports exported 9.78 billion yuan of textiles and clothing through general trade, an increase of 15.4%, accounting for 72% of the total textile and clothing export value of Shandong ports in the same period (the same below). During the same period, exports in the form of processing trade were 3.66 billion yuan, a decrease of 8.7%, accounting for 27%.
(3) Private enterprises accounted for more than 60% of exports, and exports of foreign-invested enterprises increased slightly. In October, private enterprises at Shandong ports exported 8.47 billion yuan of textiles and clothing, an increase of 12.1%, accounting for 62.3%; foreign-invested enterprises exported 3.65 billion yuan, an increase of 6%, accounting for 26.9%. During the same period, state-owned enterprises exported 1.47 billion yuan, a slight decrease of 5.4%, accounting for 10.8%.
(4) Japan, South Korea, the European Union and the United States are the main export markets, and exports to South Korea are growing rapidly. In October, Shandong Port’s textile and clothing exports to Japan were 3.11 billion yuan, a decrease of 13%; exports to South Korea were 2.85 billion yuan, an increase of 59.2%; exports to the EU were 1.98 billion yuan, an increase of 17.9%; exports to the United States were 1.89 billion yuan, an increase of 1.1%. ; The total export value to the above four markets accounted for 72.4% of the total export value.
2. The main reasons for the slowdown in Shandong port textile and garment export growth in October
The rapid rise of the textile and apparel industries in India, Vietnam, Turkey and other countries has squeezed my country’s textile and apparel export market share. In recent years, with the transfer of location advantages of the textile and garment industry, the textile and garment industry in Southeast Asia has risen rapidly. Coupled with the structural adjustment of my country’s textile industry, international garment processing orders have accelerated to transfer to Southeast Asia and other countries, and my country’s share of the traditional international market has continued to shrink. A large number of orders from Japan, the United States, and Europe “bypass” my country’s textile and apparel companies and flow directly to Vietnam, India and other countries in Southeast Asia. In the first half of this year, my country’s clothing market share in Japan dropped to 66.5%, down 4 percentage points from the same period in 2013, while ASEAN’s share in Japan rose to 18.3%, an increase of 3 percentage points from the same period in 2013. In addition, Turkey has gradually become our province’s main competitor in the European market. Turkey has a natural geographical advantage with the EU, and enjoys very favorable or even tax-free tax treatment from EU countries. In addition, Turkey has abundant raw materials and cheap labor, making it the main competitor of our province in the EU market.
3. Current issues worthy of attention in my country’s textile and apparel industry
(1) Frequent trade barriers are still an important factor restricting the development of my country’s textile and apparel exports. Various trade barriers have always been an important factor restricting the development of foreign trade in my country’s textile and apparel industry. In October 2014, the European Commission’s Rapid Alert System for Non-Food Products (RAPEX) issued a consumer warning on China-made “GRACE” brand children’s trousers and “YES! DOKIDS” brand girls’ suits. The committee believes that the above-mentioned clothing is attached with straps, which can easily strangle the neck or trap children, thus posing a danger and not complying with the European standard EN14682. Some European countries have taken compulsory measures to withdraw the appealed products from the market. Recently, the Anti-dumping Bureau of the Egyptian Ministry of Industry, Trade and Small and Medium-sized Enterprises issued an announcement to launch an anti-dumping investigation into synthetic fiber blanket products with commodity code 63014000 imported from mainland China. As technical and safety trade barriers emerge in endlessly, in order to adapt to new standards and regulations, my country’s textile and apparel export enterprises must increase corresponding registration and testing fees, and will also face more export restrictions and risks.