On the morning of May 17, Secretary-General Zhang Xian of the China Chamber of Commerce for Import and Export of Textiles made a report on my country’s textile and clothing import and export situation at the 2014 International Textile Situation Seminar. He mainly made a comprehensive analysis from four parts: the current situation of import and export in the first quarter, the foreign trade development environment, the current business model of my country’s textile and garment enterprises and industry development trends, and thoughts and suggestions on the future development of the industry. The following is a summary of the main contents of his report.
Zhang Xian, Secretary General of the China Chamber of Commerce for Import and Export, delivered a report at the 2014 Textile Situation Seminar
Analysis of import and export status in the first quarter
In 2014, my country’s foreign trade had a weak start. Excluding the factors of arbitrage trade in the same period last year, foreign trade was still running at a low level. Although facing some unfavorable factors, the endogenous driving force for foreign trade growth continues to strengthen, and it is expected that the growth of foreign trade throughout the year will be low at first and then high.
In the first four months of this year, my country’s total import and export volume was US$1,324.3 billion, a decrease of 0.5%. Among them, exports were US$679.8 billion, down 2.3%. Imports amounted to US$644.5 billion, an increase of 1.4%. The trade surplus was US$35.2 billion, a decrease of 1.4%. From January to April, the cumulative exports of textiles and clothing were US$81.88 billion, an increase of 2.2%, of which textile exports were US$33.59 billion, an increase of 4.3%, and clothing exports were US$48.29 billion, an increase of 0.8%.
Main features of textile and apparel exports in the first quarter
The transaction volume at the 115th Canton Fair is not optimistic. During the 21-day conference, the number of buyers attending the conference dropped by 0.81% compared with the 114th conference and by 7.23% compared with the 113th conference last spring. The cumulative export transaction volume of this Canton Fair was US$31.051 billion, excluding exchange rate factors, a decrease of 2.01% month-on-month and a year-on-year decrease of 12.64%. As of May 3, the total turnover of the textile and clothing exhibition hall in the third phase of the 115th Canton Fair was US$1.34 billion, a month-on-month decrease of 8.8% and a year-on-year decrease of 17.6%. The textile and apparel export transactions at this Canton Fair are mainly short- and medium-term orders, and the proportion of long-term orders is still low. Short-term orders within 3 months account for more than 50%.
Analysis of foreign trade development environment
The global economic recovery is becoming increasingly clear, but the foundation is still fragile. my country’s economic growth is facing downward pressure, but it is also gestating new vitality. Issues such as cotton and RMB exchange rate that affect the development of the industry are releasing favorable policies.
Since 1994, the RMB exchange rate has experienced five major adjustments. On March 17, 2014, the exchange rate range was expanded from 1% to 2%. The idea behind RMB exchange rate reform is to reduce government intervention, expand the floating range, and improve the foreign exchange market.
Favorable policies
Regarding cotton issues: Cotton implemented a target price policy in 2014, and the national “cotton temporary purchase and storage policy” that had been implemented for three consecutive years since 2011 was cancelled. This year’s cotton target price is 19,800 yuan per ton.
In terms of foreign trade agency issues: Foreign trade comprehensive service companies can be used as tax refund entities to issue tax refunds, which solves the foreign trade agency issues that have plagued foreign trade companies for many years.
On April 30, Premier Li Keqiang chaired an executive meeting of the State Council and proposed five measures to support the stable growth of imports and exports. Including: optimizing the foreign trade structure, improving the level of trade facilitation, improving financing services, further accelerating the progress of export tax refunds, ensuring timely and full tax refunds, and enhancing corporate competitiveness.
On May 4, the General Office of the State Council issued Document No. 19, which is a number of opinions from the General Office of the State Council on supporting the stable growth of foreign trade. Including: optimizing the foreign trade structure and improving the foreign trade environment, focusing on improving the level of trade facilitation; in terms of policy guarantees, the focus is on interest rates, financing difficulties and improving the tax refund mechanism to enhance the competitiveness of enterprises.
Considering all the above factors, especially the gradual implementation of national policies to promote import and export, China’s total import and export volume is expected to achieve a growth target of 7.5% in 2014.
The current business model and industry development trends of my country’s textile and garment enterprises
China’s comprehensive competitiveness of textile and apparel exports ranks first in the world, and it is difficult to shake its position in the short term. Europe, the United States and Japan have always been my most important markets, but Southeast Asia has become a new growth point for exports.
Introduction to business model
1. Implement the key customer strategy and focus on high-end products.
2. Large-scale private enterprises with efficient supply chain integration have become the biggest bright spot in the current industry.
3. Lay out the domestic market and cultivate new competitive advantages with brand strategy.
4. Professional foreign trade companies try to transform through extended services.
5. The stability of the management decision-making level is the basic guarantee for the sustainable development of state-owned enterprises.
Industrial layout
1. The industrial layout is rooted in the eastern coast;
2. Mid- and low-end manufacturing industries accelerate the pace of “going out”;
3. The conditions are not yet met for large-scale transfer to the central and western regions.
Thoughts and suggestions for the future development of the industry
The textile industry is not a sunset industry and there is still much room for development in the future. Textile enterprises follow the trend and are market-oriented to accelerate industrial integration. At present, OEM companies still account for a considerable proportion, and the export of independent brands has a long way to go. In the process of “going global”, non-economic factors have increased interference, and we hope that the country can provide support and protection. At the same time, the evolution of new trade methods will effectively promote the transformation and upgrading of foreign trade enterprises.
It is hoped that relevant national departments can maintainThe relative stability of the RMB exchange rate prevents excessive appreciation or depreciation in the short term and creates a stable and predictable policy environment and a good business management environment for enterprises. Improve the export tax rebate mechanism, reduce various tax burdens on enterprises, and create an open and transparent operating environment for enterprises.
