China's textile and garment export challenges coexist

Update:2018-07-27
Summary:

In the first quarter of this year, China’s exports to t […]

In the first quarter of this year, China’s exports to the United States accounted for 16.7% of total textile and apparel exports, up 5.7% year-on-year. From the perspective of export structure, clothing exports are the mainstay, and textile exports are supplemented. In the first quarter, clothing exports accounted for 70.7%, and textile exports accounted for 29.3%. China and the United States have huge trade surpluses in textile and apparel trade. In the first quarter, the cumulative trade volume of China's textile and apparel products was US$293.15 billion, of which US$9.61 billion was exported and US$180 million was imported, with a cumulative trade surplus of US$9.43 billion.

At present, textile and apparel products are not listed in the first round of tariffs, while the second round of the list issued by both China and the United States has related products in the textile industry. If trade friction continues to escalate, the textile industry may be affected in the second half of the year.

According to data from the US Department of Commerce, in the first four months of 2018, the top four textile and apparel exporters to the United States were China, Vietnam, India, and Bangladesh, accounting for 35.8%, 10.9%, 6.9%, and 5% respectively. At present, China still has an absolute advantage. As the second largest textile and apparel import market in the United States, Vietnam is most likely to undertake order transfer because of its relatively complete industrial support, low production costs and abundant labor. Sino-US trade frictions will make Vietnam occupy favorable conditions and snatch China's exports of textile and apparel orders to the United States, which is a serious challenge for Chinese textile and apparel companies.

Many companies believe that the United States will not add textiles and clothing to the list of tariffs, taking into account the interests of domestic buyers in the United States. The US textile industry has already shrunk severely, hitting Chinese textile imports and has no direct help to US manufacturing. And China, as the country with the most complete textile and garment industry chain, no country in the world can compete with it. In addition, with the acceleration of the global layout of China's textile industry, many Chinese companies have been deployed in Southeast Asian countries such as Vietnam in recent years. Even if the United States levies taxes on imported Chinese textiles, its impact on such enterprises is limited.

Sino-US textile trade friction has been in existence for a long time. In the most difficult time, it has not blocked the development of China's textile industry, but accelerated the upgrading of China's textile industry. In the face of Sino-US trade frictions, enterprises should accelerate transformation and upgrading, strengthen themselves, see the general trend, and enhance their ability to resist risks.