Recently, the international version of TikTok has become the focus of everyone’s attention. The United States has now begun to “oppose China whenever it wants” and has fully politicized business issues.
This time the international version of TikTok is targeted by the United States, this is actually not an isolated case. In recent years, there have been ZTE and Huawei, and then companies on the US Entity List. As long as the United States feels that this company may pose a slight threat to its global hegemony, or even if the United States feels that it will be beneficial to sanction this company in the future. Picture, it will use various reasons to add these companies to the “blacklist”. In the early morning of July 21, the Bureau of Industry and Security of the U.S. Department of Commerce suddenly announced that 11 Chinese companies would be included in the “Entity List”, including three textile companies: Changji Esquel Textile, Hotan Teda Clothing, and Nanjing Xinyi Cotton Textile. On May 24, the Huafu subsidiary of the world’s largest color textile company was also included in the list.
From a national level, reciprocal countermeasures have not been interrupted: the United States increased taxes on China’s manufacturing industry in the trade war, and China It also increased taxes on U.S. agricultural products; the United States closed the Chinese Consulate General in Houston, and China immediately closed the U.S. Consulate General in Chengdu… But the game between great powers is never a simple matter. From a micro perspective, textile companies It is also necessary to “find another way”.
Recently, the term internal circulation has become quite popular.
In the economic community, internal circulation has been discussed for several rounds, but the impact has been limited to discussions and brainstorming at meetings.
What made this word popular was that on June 18, a big boss made a written speech at the Lujiazui Forum: “We are still facing greater pressure from the economic downturn, but the situation is gradually improving. The direction has changed, and a new pattern of dual-circulation development is taking shape, with domestic circulation as the mainstay and international and domestic circulation reinforcing each other.”
Roughly speaking, the external circulation corresponds to the export foreign trade market, and the internal circulation corresponds to the domestic consumption market. .
The domestic textile demand market has broken the shackles of the “off-season”, and destocking has boosted confidence
In the textile industry, the 40 years of reform and opening up For a long time, the development of the textile industry has been export-oriented due to high quality and low price. However, some countries, led by the United States, feel that China is selling too cheap, and their own country’s textile industry cannot get off the ground at all. Therefore, Hostility to China and the impact of the epidemic have caused overseas markets to shrink sharply. Therefore, some foreign trade orders can only be digested back to China. This is the so-called “internal economic circulation.”
In fact, from the beginning of the Sino-US trade war last year to this year’s new crown epidemic, some textile foreign trade companies have subconsciously shifted their focus from foreign trade to domestic trade.
Manager Wang, the person in charge of a weaving company that specializes in elastic fabrics, said that in previous years, their order composition was 80% foreign trade and 20% domestic trade. However, this year, on the one hand, foreign trade is sluggish due to the COVID-19 epidemic. It consciously opened up new customers, so it gradually shifted its focus to domestic trade. At present, domestic trade accounts for more than 70% of the total trade volume.
Good news came from the domestic demand market after the silence. In late July, the textile market broke the shackles of the “off-season”. Many textile bosses said: “This wave of market conditions caught us off guard and finally made us go a little further.” Goods!”
According to monitoring data, the transaction atmosphere in the Jiangsu and Zhejiang markets has improved recently compared with the previous period. The transactions are mostly concentrated in autumn and winter fabrics. Both the domestic trade and foreign trade markets have performed to a certain extent, especially the domestic trade market.
“From after the Dragon Boat Festival to last week, the market was really slow. Sometimes I would sit in the sales department for an afternoon and there would be no one. “There are calls to purchase gray fabrics,” said Mr. Shen, who makes four-way stretch fabrics. “But this week is a completely different scene. I now receive various calls to purchase gray fabrics early in the morning. 20,000 meters here, and 20,000 meters there.” It costs 50,000, and the inventory in the warehouse has been reduced recently, and some orders have to be custom-woven and need to be queued up.”
In addition to better stretch performance, the placement of orders for other regular autumn and winter fabrics is also better than In the early stage, such as Shumei silk, gallbladder, etc. used for lining, warp knitted suede, velvet, etc. used for sofa fabrics. In addition, medium-thick clothing fabrics also have certain performance, especially after special finishing processes. It was later used to make down jackets, cotton jackets and other fabrics, and performed well in market proofing and testing.
It can be seen that the market has indeed released good signals, whether it is the price increase of raw materials or the placement of autumn and winter orders, at least the social inventory that has been rising steadily in the early stage has been stabilized. During the editor’s visit and research, most weaving manufacturers have begun to slow down the increase in gray fabric inventories or their production and sales have been able to level off. The inventories of a few manufacturers that produce marketable products have even dropped slightly, which has also boosted the confidence of market participants.
According to traditional practice, June and July are the traditional off-season for textiles, and phenomena such as load reduction and inventory accumulation are also common in the market.
What is different this year from previous years is that some companies have experienced “low demand and high load” in the second quarter. Their own inventories have reached a high level in recent years, and the financial pressure is greater, so they have entered 6 In mid-month, the market began to take turns�. Holiday operations have accelerated. The main cluster load in Jiangsu and Zhejiang has been hovering around 60%, and the lower one is around 40%.
In the face of the current market situation, companies that have received good orders have begun to operate at full production, and companies that have received average orders have also postponed their holiday plans to prepare for the market in August and September, which has led to a decline in the market. The operating load increased slightly.
According to monitoring data, the recent start-up of water-jet looms has rebounded to about 70%, the start-up of warp knitting machines is at 70-80%, and the performance of circular knitting machines is slightly worse, at about 40%. Compared with last week, It increased by 4 percentage points, which is not much different from the same period last year.
Foreign trade market: Risks still exist, focus on developing new markets
Today The general environment is still deeply affected by the epidemic. The textile industry is still facing the dilemma of slow recovery of end consumption, especially the weak foreign trade market. The poor economy has led to the rising unemployment rate and the number of bankrupt companies abroad. It can be said that the development of overseas epidemics has a negative impact on the economy. The impact, and even the impact on the textile industry, has not diminished over time. If the epidemic recurs in the autumn, foreign trade economic activities will easily be “suspended” again. Then foreign trade can’t be done? Of course not. The number of orders from Europe and the United States is large and the profits are relatively generous. However, while accepting orders, we must also focus on developing new markets.
In recent years, our country has been advocating the construction of the “One Belt, One Road” plan to cope with the complex and profound changes taking place in today’s world, and the countries along the “One Belt, One Road” are very good trading partners.
In addition, the Regional Comprehensive Economic Partnership (RCEP) will be signed in 2020. This agreement will establish a unified 16-country alliance by reducing tariffs and non-tariff barriers. market free trade agreement. If RCEP succeeds, it will cover a population of approximately 3.5 billion, and the total GDP will reach US$23 trillion, accounting for 1/3 of the global total. The area covered will also become the world’s largest free trade zone. Now, except for India, the remaining 15 countries have concluded negotiations and started reviewing legal texts.
Therefore, textile people have begun to explore markets in these countries and regions, especially countries such as Japan and South Korea. Due to relatively better epidemic control, textile market demand has basically returned to pre-epidemic levels.
Spurred by the epidemic, the United States’ tendency to “unilateralism” has become increasingly obvious. With a moody and re-elected president like Trump, the trade tensions between China and the United States have Political risks are becoming ever greater.
For textile companies, under the influence of the epidemic, on the one hand, they must seize the orders in hand; on the other hand, they must not put their eggs in one basket and turn part of their attention to the domestic market. In terms of foreign trade, We should also actively expand markets in countries with relatively small political risks and strive to be prepared. </p
