In August, the textile market was still sluggish and deserted. A person in charge of a textile company asked a reporter, “Will there be spring in the textile market this year? The difficult days are so difficult that we can no longer sustain it.”
At the beginning of 2020, affected by the COVID-19 epidemic, The production and sales of most textile companies are sluggish and the capital turnover is difficult. Coupled with the Sino-US trade war and the disordered rhythm of the off-peak and peak seasons, some textile companies have come to a standstill. In the first half of the year, the operating conditions of all textile companies were poor.
At present, some companies have entered the shutdown stage, and most employees mainly take vacations to rest. It is expected that more companies will suspend work and production in August. In the future, there are still many uncertainties in the external market. Can spring come earlier?
The United States: Pushing Sino-US trade relations into negative territory, the impact on textile and apparel exports may intensify
On Tuesday, the U.S. government The Chinese government was suddenly asked to close the Consulate General in Houston within 72 hours and evacuate all personnel. More than four hours later, a fire broke out at the Chinese Consulate General in Houston. Witnesses said they saw a small amount of smoke rising from the embassy courtyard and smelled burning paper. Based on the principle of foreign affairs sovereignty, the Chinese Consulate General in Houston did not allow relevant personnel from the Houston fire and police departments to enter, which intensified friction between China and the United States.
It is reported that the “Entity List” is an export control regulation established by the United States to safeguard its national security interests. U.S. exporters may not assist companies on these lists to obtain any items subject to this regulation without obtaining a license. The Entity List is a tool used by the Bank to restrict the export, re-export and (domestic) transfer of items subject to the Export Administration Regulations (EAR) to persons (individuals, organizations, companies) that it reasonably believes involve or pose a significant risk , engage in activities contrary to the national security or foreign policy interests of the United States. Additional license requirements apply to the export, re-export and (domestic) transfer of items subject to the EAR to a listed entity, and the availability of most license exceptions is limited. Simply put, the “Entity List” is a “blacklist”. Once on this list, it will actually deprive relevant companies of trade opportunities in the United States.
At the same time, the Office of the United States Trade Representative (USTR) recently announced a new list of products exempt from additional tariffs. This is the seventh batch of excluded products in the US$300 billion tariff list announced by the United States, involving cotton knitted women’s robes, boot racks, plastic shells, foam pads, baby clothes and baby sleeping bags, men’s and women’s bathrobes, blankets, and ovens A total of 64 products including gloves. In addition, this week, the United States requested the closure of the Chinese Consulate General in Houston, causing Sino-US relations to once again become tense, and some media even called it a “cold war” between China and the United States. This is an unprecedented escalation action taken by the United States against China, further pushing Sino-US trade relations into a negative direction.
The direct result of the U.S. trade war with China is a significant decline in China’s textile and apparel exports to the United States. If Sino-U.S. relations deteriorate sharply, the impact on China’s textile and apparel exports will inevitably intensify. After all, China’s textile and apparel exports to the United States account for 16.5% of China’s total textile and apparel exports.
With the rapid development of my country’s economy and the growing middle class, the acceptance and digestion capacity of mid-to-high-end textiles and clothing has been greatly enhanced, which has comprehensively eased the Dependence on the U.S. market and the impact of policy changes. However, due to the repeated impact of the epidemic, the production scale of the textile industry has declined, and most goods have shifted from export to domestic sales. At present, it is unlikely that things will get better in the short term. It can be expected that the domestic textile industry will continue to be increasingly affected by the Sino-US trade friction.
India’s “anti-China” sentiment is on the rise: Beware of chargebacks, abandoned orders, express delivery suspensions, hotel bans…
Recently, anti-China sentiment in India has been rising, and India’s “all-round retaliation” actions against China have been escalating. From abruptly terminating business cooperation to setting up customs barriers, to boycotting Chinese goods, banning Chinese companies’ mobile apps, and banning new investments by Chinese companies.
Indian technology media Entrackr reported that on July 25, WeChat officially restricted its users in India from sending and receiving messages.
WeChat said in a notice to users, “According to Indian law, we are currently unable to provide you with WeChat services. We value every user, and data security and privacy are the most important to us. We are in contact with relevant departments and hope that services can be restored in the future.”
A large number of Indian users have responded to this situation on Twitter. They said that after opening WeChat, their WeChat accounts were forced to log out. , and then you can no longer log in, even if you use a VPN to log in. It is understood that affected WeChat users are basically registered through local Indian mobile phone numbers. If they register using Chinese mobile phone numbers, they will not be affected.
According to people familiar with the matter, India will review another 275 Chinese applications (Apps) to determine whether they have any behavior that harms India’s national security and infringes on user privacy.
It is reported that India has drafted a list. These applications include: Tencent’s game “PlayerUnknown’s Battlegrounds” (PubG), Xiaomi short video application Zili, online shopping…Use AliExpress, ByteDance’s music streaming app Resso and camera app ULike.
India’s series of uncontrolled measures may continue to escalate risks in trade, shipping, e-commerce, and investment between China and India. As an important exporter of domestic textiles, India’s anti-China behavior will inevitably affect the procurement of textile orders, and the risk of textile orders has increased sharply.
The “V-shaped” rebound of China’s economy under external pressure: Domestic textile companies are accelerating the survival of the fittest
But it is undeniable that China’s economy is slowly recovering among.
1. The profit growth rate of industrial enterprises has turned from falling to rising. Data released by the National Bureau of Statistics on July 27 showed that in the second quarter, the profits of industrial enterprises increased by 4.8% year-on-year, after falling by 36.7% in the first quarter. Especially in May and June, profits increased by 6.0% and 11.5% respectively, and the growth rate accelerated month by month. .
2. The total operating income and total profits of state-owned enterprises achieved monthly year-on-year growth for the first time this year. According to data released by the Ministry of Finance on July 23, in June, the total operating income of state-owned enterprises increased by 7.1% compared with the same period last year, and total profits increased by 6.0% compared with the same period last year.
3. Central enterprises achieved positive monthly net profit growth for the first time. Data recently released by the State-owned Assets Supervision and Administration Commission showed that central enterprises achieved a net profit of 166.48 billion yuan in June, an increase of 64.63 billion yuan from May and a year-on-year increase of 5%. This is the first time this year that monthly net profits have achieved positive growth. The positive growth in profits means that these companies are making more and more money, and it also confirms the continued recovery momentum of China’s economic V-shaped rebound.
At the same time, domestic textile companies are accelerating the survival of the fittest. According to a survey of textile companies in Shandong, Hebei, Guangdong and other places, since July, many small and medium-sized enterprises have completely withdrawn from the textile industry, and the number of companies that have suspended production and taken holidays has increased to more than 30%. However, there are still some companies with strong strength and high technological level that are still accelerating their development. These companies have seized the market gaps left by the exit of small and medium-sized enterprises.
In fact, the market is waiting for an opportunity to reach a turning point. Maybe it will be in September-October of the “Golden September and Silver Ten”; maybe it will be after the overseas epidemic is under control, maybe it will be when the Sino-US trade dispute makes some progress. In short, just when everyone feels pressure is coming, market opportunities may also be coming. </p
