In 2020, the sudden new crown epidemic has had a major impact on the economic and trade patterns of all countries in the world, disrupted the rhythm of China’s textile and garment production and trade, and caused exports to fall into a trough.
- In 2020, China’s textile and apparel foreign trade will present the following characteristics:
(1) Exports fell sharply in the first quarter, and gradually rebounded from the second quarter.
Affected by the epidemic, production and logistics in various parts of the country were severely blocked after the Spring Festival. In addition, a large number of laborers were stranded in the township during the long holiday and unable to resume work in time. Textile and apparel production and exports were severely impacted. The cumulative exports in the first quarter were only 46.35 billion US dollars, a year-on-year decrease. 17.7%. In the second quarter, the domestic epidemic was effectively contained and production basically returned to normal. However, a large-scale outbreak of foreign epidemics began. Customers in major markets began to cancel, reduce orders, or require delayed shipments, causing the export link to be blocked again, and the export of traditional bulk commodities appeared. Significant decline, yarns, fabrics and knitted garments fell by 47.6%, 38.7% and 20.8% respectively. However, at the same time, due to the spread of foreign epidemics, masks and other anti-epidemic materials are seriously inadequate. The export of masks (included in textiles), which previously accounted for a very small share of the total, has rapidly increased the overall export of textiles this season to achieve a 63% growth. From the third quarter to the fourth quarter, with the easing of the foreign epidemic situation and the availability of materials, the overall export growth rate of textiles, including anti-epidemic materials, has declined, increasing by 44.3% and 16.5% respectively in the third and fourth quarters. Along with Thanksgiving, Christmas, New Year’s Day and other traditional Western festivals, the demand for clothing, home textiles and other consumer goods has rebounded, and the industrial chains and supply chains of my main competitors such as Southeast Asia and South Asia have been affected by the epidemic and cannot meet the needs of the external market. Part of it was transferred and returned to China, and exports of clothing and home textiles began to rebound. The export of knitted garments and home textiles in the fourth quarter ended (2) All exports to key markets achieved growth, and the market share of our products in Europe, the United States, and Japan rebounded .
The export of textile anti-epidemic materials to the EU has grown rapidly, and the textile and apparel trade with China has become closer after Brexit.
In 2020, China’s cumulative exports to the 27 EU countries (excluding the United Kingdom) totaled 53.97 billion US dollars, an increase of 34.4%, of which textile exports increased by 130%, mainly driven by anti-epidemic materials. The export of textile anti-epidemic materials (according to 8-digit HS code) was 21.89 billion The US dollar accounted for 40.6% of total exports to the EU, an increase of more than 8 times year-on-year. Traditional bulk exports of clothing fell by 3.7%.
The United Kingdom officially left the European Union on January 30, 2020. With the “boots landing” of this regional uncertainty factor, the trade between the United Kingdom and China has been further developed. In 2020, the total import and export of goods between China and the United Kingdom will increase by 7 year-on-year. %, of which China’s exports increased by 16.3%. In the textile and apparel sector, China’s annual export to the UK was US$12.85 billion, an increase of 83.3%. The high growth was mainly driven by anti-epidemic materials. However, the growth rate of traditional staple woven garments was also as high as 31%. The UK’s export of knitted woven garments in China was single. Its position in the market has also surpassed Hong Kong Special Administrative Region of China and Germany to climb to third place.
Exports to the United States fell first and then rose, and anti-epidemic supplies became the biggest bright spot.
The United States is the most severely affected country in the world and the single market where China exports the most epidemic prevention materials. In 2020, China’s exports of textiles and garments to the United States amounted to 55.38 billion U.S. dollars, an increase of 22.6%. Among them, textile anti-epidemic materials (according to the 8-digit HS code) exported 21.59 billion U.S. dollars, accounting for 39% of total exports to the U.S., an increase of more than 4 times compared with the same period last year.
The U.S. has experienced constant disturbances and frequent emergencies in 2020, but the fundamentals of consumer demand are still stable. My exports to the U.S. show a characteristic of first falling and then rising: exports in the first quarter fell by nearly 30%, and then It rebounded quarter by quarter, with the growth rate reaching more than 30% in the second and third quarters, and rising to a high of 38% in the fourth quarter.
The export of traditional bulk commodities to the United States has dropped significantly: yarns and fabrics have fallen by 21.6% and 16% respectively, knitted garments have fallen by 16.5%, and only home textiles have increased by 3.5%.
ASEAN has become the only region where China’s clothing exports have achieved growth, and there is still huge room for bilateral cooperation after the epidemic.
Driven by the China-ASEAN bilateral trade agreement, the economic and trade cooperation between China and ASEAN has developed rapidly. In 2019, ASEAN surpassed the United States to become China’s second largest trading partner in textiles and apparel. In 2020, due to the impact of the epidemic, the reduction of trade exchanges and the deviation of epidemic prevention materials data will cause the China-ASEAN bilateral textile and apparel trade volume to fall behind the United States again, with a cumulative total of 46.63 billion US dollars, an increase of 0.65%. China’s exports to ASEAN were 39.8 billion U.S. dollars, an increase of 1.9%, of which textile exports fell by 2.2%, and clothing increased by 14.1%. It is the only region in our key markets that has achieved growth in clothing exports. The export of bulk commodity yarns and fabrics fell by 24.6% and 12.1%, respectively, and the knitted garments increased by 19.2%.
As my main competitor in the world, ASEAN has long regarded the textile and apparel industry as its key development industry. It has been continuously deepening in attracting investment and strengthening infrastructure construction. It has further extended its tentacles to the upstream of the industrial chain and expanded to yarn, In the field of fabrics, we strive to get rid of the dependence on China’s raw materials. ASEAN’s textile and apparel foreign trade volume is increasing year by year, and the gap with my country is rapidly narrowing. In 2017, its export volume was still less than a quarter of our export volume. In 2019, it has rapidly increased to close to 30% of our export volume. In 2020, ASEAN exports will also be affected by the epidemic, and exports will decrease significantly. However, the development trend after the epidemic will continue to improve. There is still huge trade potential and business opportunities between China and ASEAN.
Japan’s share in China’s export market has rebounded slightly, and apparel export prices have fallen.
In the five years from 2015 to 2019, Japan’s share of China’s export market has been in a continuous and slow decline. In five years, it has only fallen by 0.3%, ranking fourth after the European Union, the United States and ASEAN, and ranking first in the single market. Two people. In 2020, China’s total export to Japan was 21.93 billion U.S. dollars, the market share rebounded slightly to 7.4%, and the export value increased by 10.3%. Among them, textile exports were 7.87 billion U.S. dollars, an increase of 74.5% driven by anti-epidemic materials, and clothing was 14.06 billion U.S. dollars, a decrease of 8.5%.
Exports to emerging markets and countries along the “Belt and Road” declined slightly.
In 2020, my exports to emerging markets such as Africa and Latin America, as well as countries along the “Belt and Road” will all decline, but the decline is not large, respectively 1.4%, 6.5% and 5.7%. The future performance of these markets is still worth looking forward to. .
The share of Chinese products in the European, American, and Japanese markets all rebounded.
Under the epidemic situation, industrial transfer has increasingly become the focus of attention in the industry: from the statistics of imports in major markets, the share of Chinese products in key markets in Europe, the United States, and Japan in 2020 has all gone through a process of decline to growth. When the epidemic first broke out, the share of Chinese products dropped significantly. In the first quarter, China’s share in the EU, the United States, and Japan decreased by 1.6, 10, and 5.4 percentage points from the end of 2019, and most of them were transferred to Southeast Asia and South Asia. . However, with the gradual restoration of China’s industrial production and trade order, as well as the global spread of the epidemic, ASEAN and other regions that have formed a competitive relationship with China are deeply involved. When China resumes production, these regions have just entered a period of high incidence, and they have also encountered work stoppages. The impact of declining orders. At the end of the second quarter, China’s market share has clearly rebounded, and this momentum has continued until the end of the year.
According to statistics from Eurostat, in November 2020, the EU imported 54.58 billion U.S. dollars from China, an increase of 52.3%. The share of Chinese products rose from 30.8% in 2019 to 42.9%, an increase of 12 percentage points.
According to statistics from the U.S. Department of Commerce, the U.S. imports 47.36 billion U.S. dollars from China in 2020, an increase of 17.9%. The market share of Chinese products in the U.S. is 38.6%, an increase of nearly 6 percentage points over last year, mainly driven by textiles.
According to statistics from the Ministry of Finance of Japan, Japan imported 22.45 billion U.S. dollars from China in 2020, and its share rose from 55.3% in 2019 to 58.76%, mainly driven by textiles, while clothing is still in a downward trend. As the decline rebounded, the decline of yarns and fabrics narrowed. Major commodities textiles have achieved growth for 9 consecutive months since April, and clothing has achieved a reversal since August, and achieved growth for 5 consecutive months by the end of the year.