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China's textile exports cautiously optimistic in 2007

* : * : admin * : 2019/01/03 15:50:40 * : 54

  China is the world's largest textile producer, consumer and largest exporter. However, under the multiple policies of export quotas and tax rebates, the outlook for textile exports next year is not optimistic; expanding domestic sales is a viable way for related industries.

  The first tender for the 2007 European and American textiles contract began on the 15th and ended on November 24th. A total of 4,787 companies across the country were eligible to participate in the bid. Some textile companies said they are more cautious in bidding because they are worried that the prospect of exporting to Europe and the next year is not optimistic.。   

  Wang Yongli, deputy general manager of Guangdong Silk Import and Export (Group) Co., Ltd. said that the situation of exporting to Europe and the United States next year is not optimistic. The bidding of the agreement will cause certain risks for enterprises, and the number of bids should be measured by the company.   

  “The quota price for the tender for the agreement is lower than the price for the open tender for the quota in 2006,” Wang Yongli said. “But in order to prevent the company from wasting quotas after winning the bid, it is necessary for the enterprise to pay the bid bond in one lump sum, plus the appreciation of the renminbi and the tax rebate for textile exports. Multiple factors such as the rate reduction will have an impact on the company's capital turnover."   

  Fan Min, president of China First Textile Network, said on the 13th that the quota implementation model in 2007 was more scientific than this year, effectively controlling intermediary speculation, and the quota utilization rate will be greatly improved. “Although exports to Europe and the United States may continue to slow down next year, textile quotas are still scarce resources. Moreover, the price of bidding for many types of agreements is only one-fifth of the price on the market, and most of the agreement quotas can be used up.”   

  According to customs statistics, from January to September this year, China’s exports of textiles and clothing to the EU and the United States totaled US$28.65 billion, up 1.1% from the previous year, accounting for 26.6% of total textile and apparel exports. Exports to non-EU and US countries. The amount increased by 40.2% year-on-year, and the growth rate of textile exports to Europe and the United States was significantly slower than that of other regions.   

  In Europe and the United States, Chinese textile and apparel companies are constantly being restricted by trade protectionism such as anti-dumping and special protection clauses.   

  On the 13th, I learned from the China Chamber of Commerce for Import and Export of Textiles that the EU industry officially submitted an application to the European Commission in early October to initiate an anti-dumping investigation on linen exported from China. It is expected that the European Commission will formally file an anti-dumping investigation against Chinese export linen enterprises in the near future. This will be the first anti-dumping investigation initiated by the EU against China textiles after the signing of the China-EU Textile Agreement. If it fails, the company will not be able to export the product to the EU for at least five years. Prior to this, the United States had initiated an anti-dumping investigation involving nearly 100 million U.S. dollars in Chinese polyester staple fiber.   

  In addition, although China is the largest exporter of textiles, many developing countries such as India, Mexico, Turkey, Pakistan, Bangladesh, Thailand, Sri Lanka, Vietnam, South Africa and Nigeria are also textile exporters, and the export market overlaps with China. In some countries, the market share of individual categories exceeds that of Chinese products. The rapid development of China's textile exports is not only competitive with a considerable number of products in developed countries, but also with some developing countries.   

  Market participants believe that the textile export situation next year cannot be blindly optimistic. They believe that behind the rapid development of the Chinese textile industry, there are some problems that cannot be ignored. First, the mode of textile growth is still dominated by extensive research, and research and development and technology investment are seriously insufficient. Second, export products are mainly branded and OEM, with less self-owned brands, and enterprises only earn a small amount of processing fees. Third, textile exports in recent years. The number of enterprises has increased substantially, and the contradiction of overcapacity is very prominent, while the domestic market is almost saturated. The export pressure of enterprises is getting bigger and bigger, and the price competition of export products is becoming increasingly fierce, which leads to the continuous occurrence of vicious incidents of low-price competition.  

  Li Lingmin, deputy general manager of China National Textiles Import and Export Corporation, believes that China's textile exports must accelerate the transition from “winning by quantity” to “winning by quality”, improving product quality and industry level, and maintaining the sustainable development of the textile industry. Increase the export of high value-added products through export structure adjustment. At the same time, we can no longer engage in disorderly competition and vicious competition. We must maintain a good export order and a reasonable growth rate. Otherwise, the excessively rapid growth will inevitably lead to more and more trade frictions.

  Source: International Business Daily