China's Foreign Trade Of The Textile Industry Is Facing Difficulties

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Affected by the rising labor costs, shrinking foreign trade order, weak domestic demand, financing difficulties and many other factors, the domestic textile industry is experiencing a severe test. It is reported that since the Spring Festival, China's textile trade difficulties previews. The situation has been further deteriorated since May.

Affected by the European economy, the falling of the sales volume is the inevitable trend. As China's textile industry has a great reliance on the export, the trade orders of some companies accounted for 30% to 40% of the total orders. The reduction of foreign trade orders has a considerable impact on these enterprises.

In the first six months, affected by the influence of unfavorable factors such as high prices of raw material, rising labor costs, RMB appreciation, international environmental turbulence, the textile industry has entered a high cost era. Export environment is worsening. Increasing price has become the main engine of keeping growth of China's textile and garment exports in this year. The export growth is expected to decrease to 15 percent throughout the year.

From the point view of the output of main products, in the first quarter, yarn production reached 6.18 million tons, an increase of 12.5%; cloth production was 13.3 billion meters, an increase of 19.9%; clothing production was 5.36 billion, an increase of 14.6%. In the first two months of this year, the textile industry realized a total profit of 34 billion yuan, an increase of 57.7%; the corporate loss was 15.1%, loss-making enterprises amounted to 2.93 billion yuan, a decrease of 0.3%.

In fact, the textile companies face not only domestic competitors. Due to the RMB appreciation and the rising labor costs in China, China's advantages as the factory of the world no longer exist. Vietnam, Indonesia and some African countries will become the new competition opponents of the Chinese textile enterprises. There are many cases that some large foreign enterprises in China procure cotton yarn and weave in other countries.

Analysts of the industry say that China's textile industry has a great reliance on the export, the trade orders of some companies accounted for 30% to 40% of the total orders. The reduction of foreign trade orders has a considerable impact on these enterprises. Affected by the European economy, the falling of the sales volume is the inevitable trend. The export growth is expected to decrease to 13 percent throughout the year. The domestic textile industry is experiencing a severe test.

About the Author:
I am Amanda Xia from textiles-leather.com, and my work is to promote a free online trade platform. http://www. textiles-leather.com/ contain a great deal of information about poy polyester yarn , polyester tow , plastic cotton ,and more.



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