Since 2020, due to the shrinking global market and declining demand, the profits of China’s textile industry have suffered throughout the epidemic and will continue to suffer losses due to rising raw material prices.
Foreign analysis reports show that China’s textile industry has suffered huge losses since the beginning of 2020 because the industry has been unable to increase product prices. In addition, the order volume of China’s textile industry this year has dropped by 40% compared with last year.
According to estimates from the China Chamber of Commerce for Import and Export of Textiles, in the first half of 2022, the order transfer scale of China’s textile and apparel industry will be approximately US$6 billion, of which the order transfer scale of the cotton textile industry will be approximately US$1 billion. The proportion of export orders for 26% of companies exceeds 30%, and the proportion of export orders for 39% of companies is between 10% and 30%.
At the same time, more than 90% of companies said that compared with the second half and fourth quarter of last year, the current order plan has been shortened, and nearly 59% of companies have order plans for 13 months. According to import and export data, the growth rate of China’s clothing and home textile products has shown a relatively obvious slowdown trend. Most clothing factory orders this year will be completed in September.
Due to industrial transformation and upgrading, changes in the industrial chain layout, and the impact of the U.S. tariffs on China, China’s export orders had begun to flow out before the outbreak of the new coronavirus. According to data from the U.S. Department of Commerce, China’s share of U.S. cotton textile and apparel imports fell to 17.1% in 2021 from 23.5% in 2019. The share of cotton apparel imports dropped from first to second in 2019, and Vietnam became Second major supplier. China’s share of U.S. cotton textile and apparel imports fell to 15.3%, second only to Vietnam and Bangladesh, followed by India. In fact, the main reason for the market slump is insufficient demand in the consumer market due to epidemic prevention and control and shrinking foreign markets.
Cotton spinning orders are mainly transferred to India, and clothing orders are mainly transferred to Bangladesh, Vietnam, India, Indonesia, Cambodia and other countries. According to the report, the China Chamber of Commerce for Import and Export of Textiles recently conducted a survey of enterprises, and 85% of the enterprises said that customer orders have obviously migrated outward.
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