Textile and apparel exports from Xinjiang ports fell year-on-year in the first half

According to customs statistics, in the first half of this year, Xinjiang ports exported 19.67 billion yuan of textile yarn, fabrics and products, clothing and clothing accessories (hereinafter referred to as “textile clothing”), a decrease of 13.8% compared with the same period last year (the same below); of which , the export of clothing and clothing accessories was 14.02 billion yuan, a decrease of 5.5%; the export of textile yarn, fabrics and products was 5.65 billion yuan, a decrease of 20.2%.
​1. The main characteristics of textile and clothing exports from Xinjiang ports in the first half of this year
(1) Both year-on-year and month-on-month growth were recorded in June. Since reaching the highest value of the year in January, Xinjiang’s textile and clothing exports have fluctuated. In June, Xinjiang’s textile and clothing exports were 3.79 billion yuan, a year-on-year increase of 0.1% and a month-on-month increase of 15.2%.
(2) Nearly 70% of border trade exports have been small-scale trade, and general trade exports have increased slightly. In the first half of this year, Xinjiang ports exported 13.62 billion yuan of textiles and clothing in the form of small-scale border trade, a year-on-year decrease of 12%, accounting for 69.2% of the total textile and clothing exports of Xinjiang ports in the same period (the same below); in the same period, general trade exports were 4.76 billion yuan, an increase of 26.3%, accounting for 24.2%; exports in the form of tourism and shopping were 1.26 billion yuan, a decrease of 63.7%, accounting for 6.4%.
(3) Kazakhstan, Kyrgyzstan and Tajikistan are the top three export markets. In the first half of this year, Xinjiang Port’s textile and clothing exports to Kazakhstan were 7.47 billion yuan, a decrease of 25.8%; exports to Kyrgyzstan were 7.01 billion yuan, a decrease of 22.6%; exports to Tajikistan were 2.08 billion yuan, an increase of 54.3%; exports to the above three markets The total accounted for 84.2%. In addition, exports to the Russian Federation were 1.76 billion yuan, an increase of 66.1%; exports to Mongolia were 380 million yuan, an increase of 1.6 times.
(4) Private enterprises dominate exports. In the first half of this year, private enterprises in Xinjiang ports exported 18.52 billion yuan of textiles and clothing, a decrease of 10.9%, accounting for 94.2%; during the same period, state-owned enterprises exported 820 million yuan, a decrease of 53.6%, accounting for 4.2%; wholly foreign-owned enterprises exported 170 million yuan, an increase of 9.74% %, accounting for 0.9%.
2. The main reasons for the decline in textile and clothing exports from Xinjiang ports since this year
(1) The withdrawal of the quantitative easing policy by the United States has triggered currency depreciation in some countries. Since the beginning of this year, affected by the withdrawal of the quantitative easing policy by the United States, the currencies of Kazakhstan and Russia, which are adjacent to Xinjiang ports, have accelerated their depreciation, depreciating by 19% and 6% respectively. This has correspondingly increased the prices of their imported goods and weakened the competitiveness of our region’s export goods.
(2) The Russia-Belarus-Kazakhstan Customs Union reduces the foreign trade of the allied countries. The rapid growth of trade between the Russia, Belarus and Kazakhstan Customs Union countries has reduced the foreign trade of the alliance countries. For example, the trade volume between Kazakhstan, Russia and Belarus increased from US$12.9 billion in 2009 to US$24.4 billion in 2013, an increase of 89.1%. The cancellation of chartered cars and tax and the increase in tariffs on imported goods will have a certain impact on Xinjiang port clothing exports.
(3) Costs continue to increase and export pressure from emerging markets increases. At present, my country’s labor costs are already higher than those of neighboring countries, energy and environmental pressures are increasing day by day, and downward pressure on product prices is relatively large. The national industrial producer price index has been negative for 27 consecutive months since March 2012. The chemical fiber factory price index from January to May 2014 was -6.5%. This is affected by low production efficiency and falling raw material prices. There is also a structural phased oversupply problem. The competition for textile and clothing orders between my country and neighboring countries has intensified, which has increased the pressure on my country to continue to maintain its share in major sales markets such as Europe, the United States, and Japan, as well as in emerging markets.
It is worth paying attention to: Textile raw materials are an important foundation for the development of the textile industry, and it is of great significance to accurately grasp the changing trends of textile raw materials. At present, in the textile raw material link, on the one hand, it is difficult to bid for cotton from the state reserve and the bidding funds are under great pressure; on the other hand, the distribution of imported cotton quotas is seriously unbalanced. At the same time, raw materials such as chemical fiber, polyester staple fiber and other raw materials are weak due to downstream weakness, manufacturers’ price increases have not been recognized by downstream, manufacturers’ products are generally unsaleable, and the profits of textile companies have been gradually compressed. These have become bottlenecks in the development of my country’s textile industry.
Recommendations for this: First, speed up the transformation and upgrading of the clothing industry, vigorously cultivate independent brands, increase product added value, and enhance the core competitiveness of the industry; second, give full play to the organizational and coordination role of industry associations. Guide enterprises to actively respond to foreign trade frictions and safeguard their legitimate rights and interests; third, strengthen communication and cooperation. Enterprises deepen cooperation with mature foreign enterprises in aspects such as branding, product design, technology transfer, and sales markets, and further transform from trading partners into strategic partnerships to promote the sustained, stable, and coordinated development of my country’s textile trade.