Last year, my country’s textile and apparel export enterprises withstood the impact of the unfavorable world international trade environment and achieved rapid growth in exports throughout the year. In 2021, my country’s textile and clothing export companies will undoubtedly face challenges, but there will also be opportunities. Advance research and judgment can help companies prepare for rainy days and stay calm in the face of crises.
Ministry of Commerce: China’s foreign trade situation remains complex and severe
First of all , Textile and garment enterprises must have an overall grasp of this year’s foreign trade export situation.
On January 29, the Ministry of Commerce held a press conference on commercial work and operations in 2020. Zhang Li, deputy director of the Foreign Trade Department of the Ministry of Commerce, said at the meeting that judging from recent research and analysis, the foreign trade situation in 2021 will still be complex and severe, with challenges and opportunities coexisting.
Li Zhang said that from the perspective of challenges, there are both long-term challenges and short-term pressures. The COVID-19 epidemic is still spreading around the world. The world economy is in deep recession and the foundation for recovery is not yet solid. The pattern of international industrial and supply chains has been profoundly adjusted, and uncertain and unstable factors are increasing. In recent times, foreign trade companies have also felt considerable pressure in aspects such as maritime logistics, exchange rates, labor, and raw materials. Therefore, the difficulties that foreign trade development may face cannot be taken lightly.
At the same time, we must also see that there are the political advantages of the party’s leadership and the institutional advantages of socialism with Chinese characteristics, as well as ultra-large markets and complete industries. system, China’s comprehensive competitive advantages still exist. In the process of building a new development pattern, China will also further promote institutional opening up and innovative development of foreign trade. These are the foundation and confidence to face difficulties and do a good job in foreign trade.
Li Li pointed out that China has designated 2021 as the “Year of Foreign Trade Innovation and Development”, will build a new development pattern around services, and will go all out to stabilize the fundamentals of foreign trade and foreign investment, and remain firm Promote the innovative development of trade and focus on doing a good job in foreign trade from the two aspects of “consolidation” and “enhancement”.
On the one hand, we need to consolidate the foundation for the stabilization and improvement of foreign trade, maintain policy continuity, stability and sustainability, and resolutely stabilize the basic foundation of foreign trade and foreign investment. plate. On the other hand, we should enhance the ability of foreign trade services to build a new development pattern and enhance the comprehensive competitiveness of foreign trade.
Focus on the implementation of three major plans:
The first is the plan of excellent entry and excellent exit. Optimize the structure of export products and improve the quality of export products. Cultivate new foreign trade formats and models such as cross-border e-commerce, market procurement, and bonded maintenance. Build a national import trade promotion innovation demonstration zone.
The second is the trade industry integration plan. A number of newly identified bases for foreign trade transformation and upgrading. Cultivate a number of processing trade industrial parks.
The third is the trade unblocking plan. Continue to support export products for domestic sales. Negotiate with more trading partners to establish a working mechanism for unimpeded trade, especially countries related to the “One Belt, One Road” initiative. Run the Canton Fair well and develop online exhibitions. Expand the scale of overseas warehouses. Strengthen the construction of the international business system. Continue to add impetus to the development of my country’s foreign trade.
Three things that need to be paid close attention to in 2021
For textile and clothing foreign trade companies, in 2021 There are several things that require great attention this year.
The first is the expectation of RMB appreciation.
As China took the lead in controlling the epidemic and its economy quickly recovered, the RMB has appreciated all the way. Since June 2020, the exchange rate of RMB against the US dollar has risen by more than 6,000 points. Looking forward to 2021, analysts believe that international capital favors RMB assets, and market forces should be in a state of promoting strong appreciation of the RMB. The appreciation of the RMB is likely to continue in the first half of the year.
Some large export companies have used financial instruments such as foreign exchange locks and hedging to avoid risks, while small and medium-sized foreign trade companies lack the financial resources and professional skills to deal with the exchange rate. Frequent fluctuations. How to deal with exchange rate fluctuations is a hurdle that small and medium-sized export textile and clothing foreign trade companies will continue to face in 2021.
In response, some textile and clothing foreign trade companies have begun to try to use RMB settlement to avoid risks caused by fluctuations in the US dollar exchange rate. For buyers from Southeast Asian countries, Chinese export textile companies have actually started using RMB for settlement very early. There are also many foreign trade textile companies in Africa that use RMB for settlement.
The second is the export potential in the post-epidemic era that needs to be tapped.
2020 is a special year. Affected by the epidemic, my country’s textile and apparel exports have experienced large fluctuations, and the overall trend has been a decline first and then a rise. Starting from the third quarter of last year, many garment foreign trade factory orders began to recover or become saturated, and even experienced a burst of orders. So, can this export momentum be maintained and extended this year?
It is foreseeable that the procurement direction in the international market will return to normal track as the epidemic situation improves. Markets such as the European Union, the United States, and Japan will once again turn their attention to ASEAN, South Asia, and countries and regions with geographical advantages , the market share of Chinese products is likely to decline. Export textile companies need to focus on changes in procurement trends and make arrangements in advance.
In terms of export products, anti-epidemic materials will still be the driver of export growth An important force. The world has not yet emerged from the shadow of the epidemic. Although China’s exports of epidemic prevention materials have declined compared with the peak period, they will still maintain the characteristics of large scale and high growth, and will still be the main force driving export growth.
At the same time, entering the post-epidemic era, the textile and clothing cross-border e-commerce platform will be further developed. Other experts predict that foreign trade orders will become more fragmented ization, small orders will become the mainstream, and the living space of pure trade foreign trade companies will become narrower and narrower. China’s foreign trade textile companies, especially B2B foreign trade companies, should adjust their product lines and reposition their customer base.
The third is the emergence of a new trend of “turning from outside to inside”.
As early as the beginning of the Sino-US trade friction, some textile and garment foreign trade companies have consciously shifted their focus Moderate transfer from foreign trade to domestic trade. At present, accelerating the formation of a new pattern of high-quality development with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other has become the theme of China’s economic and social development, and the transfer of foreign trade to domestic sales has therefore become a trend for many The choice for export enterprises to seek development.
Facing the dilemma of slow recovery in the end consumer market, especially the poor overseas economy has led to unemployment and bankrupt companies in some countries The quantity continues to rise. Many textile and garment export companies in China know that they cannot put their eggs in one basket. Therefore, while developing overseas orders, they focus on developing the mainland market, actively seek benefits from high quality, share business risks, and have achieved good economic results. Benefits.</p
