Thanks to the implementation of a package of policies to stabilize the economy and foreign trade since the end of April, as well as effective progress in domestic epidemic prevention and control, logistics, transportation and supply chains have been well repaired, my country’s textile and apparel exports performed better than expected in May. Among them, the growth rate of clothing exports exceeded the national average growth rate of goods exports by 8 percentage points, becoming the highlight of foreign trade exports in the entire textile industry.
According to the statistical bulletin from the General Administration of Customs on June 9, my country’s textile and apparel exports in May were US$29.23 billion, a year-on-year increase of 20.4% (a year-on-year increase of 18.6% in RMB) and a month-on-month increase of 23.9%. Among them, textile exports were US$14.03 billion, a year-on-year increase of 15.8% (a year-on-year increase of 14% in RMB), a month-on-month increase of 14.4%; clothing exports were US$15.2 billion, a year-on-year increase of 24.9% (a year-on-year increase of 23.1% in RMB), a month-on-month increase of 34.2 %.
From January to May, my country’s textile and apparel exports amounted to US$125.07 billion, a year-on-year increase of 11.2% (a year-on-year increase of 9.1% in RMB). Among them, textile exports were US$62.85 billion, a year-on-year increase of 12.1% (a year-on-year increase of 10% in RMB); clothing exports were US$62.22 billion, a year-on-year increase of 10.2% (a year-on-year increase of 8.1% in RMB).
From the supply side, due to the rebound of the epidemic in April, the upstream and downstream supply chains in Shanghai and the Yangtze River Delta region were blocked, logistics was sluggish, and corporate capital flows were tight. The normal production and trade of my country’s textiles and clothing were generally suppressed. With the restoration and smooth flow of logistics channels such as land transportation, ports, and airports, and the implementation of various policies to benefit and assist enterprises, various regions are actively promoting the resumption of production and work in an orderly manner. Textile and apparel companies have rushed to resume production and shipments, and suppressed exports have been gradually released. Chen Jiaxiang, general manager of the Trade Department of Zhejiang Textile Import and Export Group Co., Ltd., said in an interview with a reporter from China Textile News that judging from the company’s export situation, the recent exports of chemical fiber fabrics and clothing products to Europe and the United States have been generally good, and the overall export of products has been relatively good. The competitive advantage is relatively prominent. At present, logistics and production in Shanghai and surrounding areas are still recovering. As the supply chain is repaired and the resumption of work and production continues, my country’s textile and apparel export capabilities and industrial advantages will further emerge.
From the demand side, the demand for clothing in the international market has continued to recover since this year. Taking the United States as an example, according to the latest data released by the U.S. Office of Textile and Apparel Trade (OTEXA), from January to April 2022, the United States imported $90.946 billion in clothing from the world, a year-on-year increase of 38.05%. Among them, clothing imports from China amounted to US$21.623 billion, a year-on-year increase of 35.75%. In April, the amount of clothing imported by the United States from China increased by 43.14% year-on-year. It can be seen that the growth of my country’s overall apparel exports to the United States is in sync with the recovery trend of U.S. market demand.
Talking about the recovery of the U.S. consumer market, Zhu Yuxing, deputy director of the Information Department of the China Chamber of Commerce for Import and Export of Textiles, said that U.S. clothing and apparel store retail sales in April were US$26.2 billion, a record monthly retail high, a year-on-year increase of 8%. She believes that in addition to the rebound in international market demand, the rapid growth of my country’s textile and apparel exports in May was largely driven by the prices of export products. The rise in raw material prices has led to an increase in product export prices, and the factor of price growth has exceeded the driving role of quantity growth.
Since the beginning of this year, my country’s import and export trade has achieved steady growth, and the foundation for maintaining the stability and improving the quality of foreign trade has continued to be consolidated. However, there are outflows of orders and relocation of industries in some domestic industries, which has aroused widespread concern. In response to this phenomenon, Li Xingqian, Director of the Department of Foreign Trade of the Ministry of Commerce, recently stated at a regular policy briefing of the State Council that since 2022, with the gradual recovery of production in neighboring countries, some of the foreign trade orders that returned to the country in 2021 have flowed out again. Overall, the scale of these order outflows is controllable and the impact is limited.
Li Xingqian said that China’s position in the global industrial chain and supply chain structure is still consolidated. China has a complete industrial system, with obvious advantages in infrastructure, industrial supporting capabilities and professional talents. China’s business environment is also continuing to be optimized, and the attractiveness of the ultra-large market is constantly increasing.
The situation in the textile industry also reflects this feature. my country has the advantage of a complete textile industry chain and has outstanding advantages in the production of garment orders with complex processing techniques. Affected by the epidemic, production and logistics in some areas of the country were temporarily interrupted. Some international buyers transferred orders from my country to neighboring countries, but later transferred the orders back to my country due to reasons such as the quality control capabilities of clothing products. Zhu Yuxing analyzed that it is expected that with the gradual resumption of work and production, the impact on the supply chain in the Yangtze River Delta region will be alleviated, driving the overall textile and apparel industry to achieve slight growth in the second quarter. Textile and garment enterprises should focus on stability at present, actively protect customers and orders, and seize the growing international market opportunities in the best possible condition. In the long run, as long as external demand is stable, my country’s textile and apparel industry will be able to demonstrate the resilience and comprehensive competitiveness of the industry, and my country’s textile and apparel exports will achieve steady or slight growth throughout the year.
China Textile International Capacity Cooperation Enterprise Alliance analyzes that the foreign trade situation faced by my country’s textile industry is still complex and severe. Since April, the United Nations, World Trade Organization (WTO), and IMF have all lowered their growth expectations for global economic and trade in 2022. At the same time, the textile supply chain of Southeast Asian and South Asian countries has continued to recover since this year, and exports to markets such as the United States and Europe have grown rapidly. It is expected that in the second half of the year, my country’s textile industry export trade willIt will still face greater competitive pressure and unstable factors.
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