In 2020, the sudden COVID-19 epidemic had a major impact on the economic and trade patterns of countries around the world, disrupting the rhythm of China’s textile and clothing production and trade, causing exports to fall into a trough. In the face of the sudden epidemic, the Chinese government responded quickly, deployed effectively, actively prevented and controlled the epidemic, and won the epidemic prevention war in the shortest possible time. With the strong support of the “six stability” and “six guarantees” policies proposed by the Party Central Committee, the vitality of the domestic market has been stimulated, and corporate confidence has gradually recovered. All production companies and foreign trade companies have worked together to strengthen the coordination of the upstream and downstream industrial chains and ensure the supply chain. Smooth and open up export sales channels to smoothly ensure that foreign trade will achieve growth against the trend throughout the year.
Textiles and clothing, as key export commodities, withstood the huge impact of the epidemic. Driven by masks and other anti-epidemic materials, exports throughout the year achieved unexpected growth, becoming a driving force for the country’s An important driving force for the growth of trade in goods. In 2020, China’s textile and apparel foreign trade totaled US$319.88 billion, a year-on-year increase of 8%, accounting for 6.9% of all trade in goods, of which exports were US$296.23 billion, second only to the historical peak of exports of US$298.49 billion in 2014, a year-on-year increase of 9.1%, accounting for 6.9% of the total trade in goods. Exports of national goods trade accounted for 11.4%, and imports were US$23.65 billion, a decrease of 4.1%. A cumulative trade surplus of US$272.58 billion was achieved, accounting for 51% of the country’s goods trade surplus, a year-on-year increase of 10.4%, driving the country’s overall exports of goods trade to grow by 1 percentage point.
China’s foreign trade in textiles and apparel in 2020 will present the following characteristics:
(1) The first quarter Exports dropped sharply and gradually rebounded from the second quarter.
Affected by the epidemic, production and logistics in various parts of the country were severely hampered after the Spring Festival. In addition, a large number of laborers were stranded in their hometowns during the long holiday and were unable to return to work in time. Textile and clothing production and exports were severely affected. In the first quarter, cumulative exports were only US$46.35 billion, a year-on-year decrease of 17.7%. In the second quarter, the domestic epidemic was effectively contained and production basically returned to normal. However, foreign epidemics began to break out on a large scale. Customers in major markets began to cancel, reduce orders, or request delayed shipments, causing the export link to encounter obstacles again, and the export of traditional bulk commodities all experienced declines. There was a significant decrease, with yarn, fabrics and needle-woven garments falling by 47.6%, 38.7% and 20.8% respectively in the quarter. However, at the same time, due to the spread of the epidemic abroad, there was a serious shortage of masks and other anti-epidemic materials. The export of masks (included in textiles), which previously accounted for a very small share of the total, increased dramatically, quickly driving the overall export of textiles to achieve a 63% growth in the quarter. From the third quarter to the fourth quarter, as the foreign epidemic situation eased and supplies of materials were in place, the overall export growth of textiles, including anti-epidemic materials, fell back, with growth of 44.3% and 16.5% respectively in the third and fourth quarters. With the rebound in demand for consumer goods such as clothing and home textiles during traditional Western festivals such as Thanksgiving, Christmas, and New Year’s Day, as well as orders from our major competitors’ industrial and supply chains in Southeast Asia and South Asia that are unable to meet external market demand due to the impact of the epidemic. Part of it was transferred and returned to China, and the export of clothing and home textile products began to rebound. In the fourth quarter, the export of knitted clothing and home textile products stopped falling and rebounded, and the decline in yarn and fabrics narrowed. The major category of commodity textiles has achieved growth for nine consecutive months since April, while clothing has achieved a reversal since August and achieved growth for five consecutive months by the end of the year.
Figure 1
Data source: Compiled based on China Customs data
(2) Exports to key markets all achieved growth, and the market share of our products in Europe, the United States, and Japan rebounded.
Exports of textile anti-epidemic materials to the EU have grown rapidly, and the UK’s textile and apparel trade with China has become even closer after Brexit.
In 2020, China’s exports to the 27 EU countries (excluding the UK) totaled US$53.97 billion, an increase of 34.4%, of which textile exports increased by 130%, mainly driven by anti-epidemic materials. Textile anti-epidemic materials (by 8th HS code statistics) exported US$21.89 billion, accounting for 40.6% of total exports to the EU, an increase of more than 8 times year-on-year. Clothing, a traditional bulk export commodity, fell by 3.7%.
The United Kingdom officially left the European Union on January 30, 2020. As this regional uncertainty “boots down”, the trade between the United Kingdom and China has further developed. All relations between China and the United Kingdom in 2020 The import and export of goods trade increased by 7% year-on-year, of which China’s exports increased by 16.3%. In the textile and apparel field, China’s annual exports to the UK were US$12.85 billion, an increase of 83.3%. The high growth was mainly driven by anti-epidemic materials. However, the growth rate of needle-woven garments, a traditional bulk commodity, was also as high as 31%. The UK exported only single needle-woven garments to China. Its position in the market has also surpassed Hong Kong, China and Germany and climbed to the third place.
Exports to the United States first fell and then rose, with anti-epidemic supplies becoming the biggest bright spot.
The United States is the country with the most severe epidemic in the world and is the single market with the largest exports of anti-epidemic materials to China. In 2020, China’s textile and apparel exports to the United States were US$55.38 billion, an increase of 22.6%. Among them, the export of textile anti-epidemic materials (according to 8-digit HS codes) was US$21.59 billion, accounting for 39% of total exports to the United States, an increase of more than 4 times year-on-year.
The United States has been experiencing constant turmoil in 2020, with frequent emergencies, but the fundamentals of consumer demand remain solid. China’s exports to the United States have shown the characteristics of first falling and then rising: export volume fell in the first quarter The rate was close to 30%, and then rebounded quarter by quarter. The growth rates in the second and third quarters both reached more than 30%, and the growth rates in the fourth quarter increased.�There is still a clear gap with developed countries in terms of finished product design, value chain control, and export pricing power. It is necessary to further promote high-quality development of the entire industry, enhance the soft power of the industry, and become a true manufacturing power.
(3) The “13th Five-Year Plan” has come to a successful conclusion, and we look forward to achieving greater success in the “14th Five-Year Plan”.
During the “Thirteenth Five-Year Plan” period, China’s textile and apparel foreign trade has entered a stage of stable development, with total trade volume, exports, and imports all achieving growth, with average annual growth rates of 2.5%, 2.7%, and 0.3% respectively. In 2020, textile and apparel production and exports achieved growth despite the epidemic and achieved a successful conclusion. This is a demonstration of the scale, strength and strong resilience of my country’s textile and apparel industry, as well as the ability to convert kinetic energy. It is also a comprehensive reflection of the achievements in promoting industrial upgrading and improving development quality over the years.
2021 will start a new journey of the “14th Five-Year Plan”. China’s textile and garment industry is facing new requirements in the new era. It should strive to continue to deepen adjustments and accelerate technological innovation, research and development and branding under the escort of national support policies. construction and promote industrial upgrading; while consolidating the original market, foreign trade exports will actively explore emerging markets and strengthen industrial cooperation with ASEAN countries; continue to look for investment value depression, and make full use of existing multi- and bilateral free trade agreement preferential measures to make arrangements in advance; Continue to make up for shortcomings, increase profits, and expand soft power; under the complex and severe international economic situation, pilot domestic sales to build a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other.
There will be times when the wind blows and the waves break, and the cloud sails are hung directly to help the sea. We believe that China’s textile and garment industry will be able to achieve steady and long-term development during the “14th Five-Year Plan” period and beyond, achieve leap-forward development, and achieve more brilliant results. </p
