According to customs statistics, my country’s cumulative exports of cotton yarn and cotton cloth from January to October 2020 were 227,000 tons and 5.491 billion meters respectively, with year-on-year decreases of 28.71% and 16.91% respectively; however, in September, the exports of cotton yarn and cotton cloth increased year-on-year. They were 9.70% and 3.64% respectively; the year-on-year growth rates of cotton yarn and cotton cloth exports in October were 5.77% and -3.53% respectively. Cotton yarn and cotton cloth have performed relatively well since the 2020/21 cotton year, which has led to an overall narrowing of the decline in gauze exports in 2020.
From January to October 2020, my country’s cumulative export volume of textiles and clothing was US$240.6287 billion, a year-on-year increase of 9.52%. The year-on-year growth in September and October was 15.73% and 8.65% respectively, but it is worthy of industry attention. Yes, compared with the substantial growth in exports of cotton yarn, textiles and clothing in September, the overall decline in exports of cotton yarn, cotton cloth, textiles and clothing in October was more prominent.
Why did my country’s exports of cotton yarn, cotton cloth and textile clothing fail to continue the trend of “proliferating” in October? Trading companies in Guangdong, Jiangsu and Zhejiang believe that there are five main reasons:
First, it is affected by the National Day holiday in China; second, the second outbreak of the new crown epidemic in some European countries has both affected and restricted the arrival of new orders. Third, since October, not only have sea freight rates skyrocketed, but containers at major ports in China have become so tight that it is “hard to get a ticket.” Fourth, the RMB has continued to appreciate against the U.S. dollar, and the profits of some export-oriented companies and traders have fallen sharply. The period was passively lengthened; while “short, flat, and fast” export contracts were actively abandoned (low profits); fifth, in October and November, the cash flow of a large number of cotton textile enterprises, garment factories, etc. became tight; coupled with credit The expectation of gradual tightening at the end of the year is not conducive to expanding the scale of orders.
As for RCEP, the author believes that for China’s cotton textile and clothing industry chain, it is a process of “limited short-term stimulation, but long-term benefits can be expected”: On the one hand, the textile, clothing and other industries of ASEAN countries are developing rapidly, In the state of land grabbing, the global competitiveness of cotton yarn and cotton cloth cannot be underestimated, and the impact faced by Chinese companies is not small; Japan, South Korea, Australia and New Zealand have very limited room for growth in China’s textile and clothing imports; on the other hand, the United States , European and other countries’ governments, purchasers, and brand companies continue to “eat small potatoes” for ASEAN, India, Bangladesh and other textile and clothing companies, and orders are transferred to areas outside China (the loss of mid- and low-end orders may be irreversible). How can Chinese companies make use of RCEP? The role of the “super economic circle” is key; furthermore, the out-of-control foreign COVID-19 epidemic, the uncertainty of China’s trade policy after Biden came to power, and the joint efforts of the United States and Europe to fight against China, etc., have made it difficult for RCEP to “flex its muscles.” </p
