Current situation of China’s textile industry: Industry profits and investment scale have dropped significantly
According to the China Textile and Apparel Industry Federation, in 2019, the prosperity of China’s textile industry was generally in the expansion range. The prosperity index of the textile industry in the fourth quarter was 55.2, reaching the highest level of prosperity in the whole year. In 2019, the industry prosperity and production start-up conditions were basically stable, and the textile industry prosperity was generally in the expansion range.
The external situation faced by China’s textile industry in 2020 will become more complex and severe. The global spread of the COVID-19 epidemic, the complex situation of increasing global economic risk points, and domestic structural problems still exist. The COVID-19 epidemic not only caused economic losses to domestic sales of textile companies, but also caused them to face the loss of foreign trade orders and intensified international competition.
In terms of specific industry profitability, from 2016 to 2019, the business volume of textile industrial enterprises above designated size in my country Revenue and profit totals tended to decline overall. The total operating income and profit in 2019 were 2.40381 billion yuan and 100.9 billion yuan respectively, down 2% and 11% year-on-year;
As of January-June 2020, China’s textile industry above designated size The total operating income and profit of industrial enterprises in the textile industry were 966.94 billion yuan and 40.21 billion yuan respectively, down 15.6% and 5.6% respectively year-on-year. Industry profits will decline significantly in 2020.
Not only has the profit of the textile industry declined, but its investment scale has also shrunk. In 2019, my country’s textile industry was fixed Asset investment (excluding farmers) decreased by 8.9% year-on-year, and as of January to July 2020, it fell by 17.4% year-on-year, a significant decline.
China’s textile industry profitability and Analysis of the reasons for the decline in investment
Reason 1: The growth rate of China’s domestic textile and apparel market has slowed down
Resulting in the decline in profits and investment in China’s textile industry There are many obvious reasons, one of the main reasons being the slowdown in the growth rate of China’s domestic textile and apparel market. According to data from the National Bureau of Statistics, in 2019, the national retail sales of clothing, shoes, hats, and knitted textiles above designated size were 1,351.7 billion yuan, a year-on-year increase of 2.9%, and the growth rate slowed down by 5.1 percentage points compared with 2018. As of January to July 2020, retail sales of clothing, shoes, hats, and knitted textiles by units above designated size in China were 595.9 billion yuan, a year-on-year decrease of 17.5%.
Reason 2: The export situation of the textile industry is grim
The obvious decline in profits of my country’s textile industry is not only affected by the poor domestic sales of domestic textiles and clothing, but also deeply affected by the obvious decline in textile and clothing exports. According to China Customs data, my country’s cumulative export volume of textiles and clothing in 2019 was US$280.7 billion, a year-on-year decrease of 1.5%, and the growth rate was 5.3 percentage points lower than the previous year.
According to the latest statistics from the General Administration of Customs of China, in July 2020, my country’s textile and apparel exports were US$31.294 billion, a month-on-month increase of 7.79%. Among them, the export value of textiles (including textile yarns, fabrics and products) was US$15.9769 billion, a month-on-month decrease of 1.11%; the export value of clothing (including clothing and clothing accessories) was US$15.3175 billion, a month-on-month increase of 18.97%.
From January to July 2020, my country’s cumulative export volume of textiles and clothing was US$156.482 billion, a year-on-year increase of 5.57%, of which the cumulative export volume of textiles was US$90.0804 billion, a year-on-year increase of 31.25% ; The cumulative export volume of clothing was US$66.402 billion, a year-on-year decrease of 16.58%.
In 2020, affected by the new crown epidemic and the economic downturn of various countries around the world, my country’s textile industry will face The internal and external situation has become more severe. But optimistically, the foundation for my country’s long-term macroeconomic growth will not change, and domestic macroeconomic policies will focus more on stabilizing growth. As the epidemic has been brought under control, the textile industry has gradually resumed development. The country has also begun to introduce various support policies in response to the impact of the new coronavirus pneumonia epidemic to help textile industry enterprises alleviate operating pressure. The textile industry will adhere to the general tone of seeking progress while maintaining stability. </p
