There are several data worthy of attention recently. First, data released by the National Bureau of Statistics show that in the first two months of 2020, the profits of industrial enterprises nationwide fell by 38.3%, of which the profits of the textile industry fell by 59.3%, which is lower than the profits of industrial enterprises nationwide. Second, according to customs statistics, China’s cumulative exports from January to February 2020 were 2.04 trillion yuan, a year-on-year decrease of 15.9%, of which exports of textile yarns, fabrics and products decreased by 19.9% year-on-year, and exports of clothing and clothing accessories A year-on-year decrease of 20.0%, both showing a “cliff-like” decline; third, from January to February 2020, China’s cumulative imports were 4.12 trillion yuan, a year-on-year decrease of 9.6%, of which 11.14 million meters of pure cotton gray fabrics were imported, a year-on-year decrease of 33.56%, 1- A total of 280,000 tons of cotton yarn were imported in February, a year-on-year decrease of only 1.4%.
Why are textile and clothing companies more severely affected by the COVID-19 epidemic than other industrial companies? The author summarizes the following reasons:
First of all, my country’s direct exports of textiles and clothing account for a large proportion, and most of them come from developed countries such as Europe, the United States, Japan and South Korea, which are hardest hit by the epidemic. According to statistics, China’s total textile and clothing exports in 2019 were US$271.867 billion, a year-on-year decrease of 1.85%. Although textile and clothing exports only accounted for 1.58% of my country’s total exports in 2019, the profits created and the foreign exchange earned may be significantly higher than other parts. industry. According to surveys in Jiangsu, Zhejiang, Guangdong, Shandong and other places, the dependence of textile and clothing enterprises on foreign trade exports generally exceeds 50% (including indirect exports from Hong Kong and Macao), and the dependence of high-profit and high value-added textile and clothing products on exports reaches 60%. %above.
Secondly, my country’s textile and clothing industry is still labor-intensive and has a relatively low degree of automation. Since the sudden outbreak of the COVID-19 epidemic in late January, various provinces and cities have launched primary prevention response mechanisms, and logistics and people flow have been greatly restricted. Although the resumption of work of enterprises above designated size has accelerated significantly since mid-to-late February, resumption of production has been relatively difficult. Most textile and clothing companies are still focusing on completing orders before the Spring Festival, and the demand for labor has continued to weaken. Several weaving and garment factories in Jiangsu and Zhejiang have reported that domestic and foreign consumption has pressed the “pause button”, and many textiles have become inventory before they are put on the market.
Finally, textile and clothing companies are under heavy pressure on orders and funds. At present, the demand for domestic sales of cotton yarn, gray fabrics, clothing, etc. has not improved, and export sales have suffered significant losses due to order cancellations (some products have been put on the machine) and indefinite delay in delivery. Compared with enterprises above designated size, some small and medium-sized textile and clothing companies have suffered greater impacts and losses. Judging from the survey, some cotton textile companies that have resumed work have short-term plans to reduce production or even shut down. </p
