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In 2021, Will More Overseas Textile Orders Flow To Chinese Factories?

2020/12/14 18:14:00 0

Textile OrdersForeign TradeReturnChinese FactoriesInternational Observation

At the beginning of the year, I always heard that foreign trade was the most difficult industry this year. Why do we always see the news of export explosion.

This is not a question from the industry, but I believe that there will be some foreign trade people will murmur, is it really just our family?

Judging from the current global market environment, it is obvious to all that China's manufacturing industry is in a good trend.

Recently, a large garment factory in Dongguan cooperated with cross-border e-commerce customers in Guangzhou, and the clothing was sold to end consumers in the United States and Japan through Amazon. Just in the past black five, network one period, customers in Amazon shop traffic increased greatly, orders skyrocketed. According to the director of the clothing factory, this year, cross-border e-commerce customers in Guangzhou have increased their purchase volume, which has increased from several thousand pieces in the past to hundreds of times now.

Some garment factories in Dongguan have also said that they have resumed receiving orders since July, and the orders have been arranged to the end of the year. In January of next year, we have not received the latest orders from a garment factory in Hangzhou. Recently, the clothing industry has shown a good situation of receiving orders, which is a hot phenomenon.

According to the clothing factories around Hangzhou, most of them received many foreign trade orders in the second half of the year. The improvement of foreign trade orders, on the one hand, is due to the gradual recovery of export orders in the second half of the year, and the return of foreign orders that disappeared in the first half of the year. On the other hand, in the second half of the year, the epidemic situation in Southeast Asia and other places was severe, many garment processing factories were unable to produce normally, and some garment processing orders returned to China, resulting in an increase in orders of domestic garment factories in the second half of the year and business was booming.

According to the latest data, from January to October this year, China's exports of goods increased by 0.5% in US dollar terms year-on-year. In October, the growth rate increased by 11.4%, a record high in 20 months. Among them, the textile and clothing export increased by 9.5% from January to October, and the growth rate reached 15.7% in October, maintaining a strong growth trend. The rapid growth of textile export is mainly due to the security and stability of China's textile industry chain supply chain, which effectively guarantees the production and supply capacity of textile and clothing.

As a result, the export of clothing in major countries such as Vietnam and Bangladesh has become the focus of attention due to the disruption of garment production in Vietnam and Bangladesh.

After the outbreak of new pneumonia, great changes have taken place in the world economic structure. An important feature is that the epidemic will coexist with human beings for a long time, the impact of the epidemic on the economy will continue, and the safety and stability of the industrial chain and supply chain are more important than ever before, which brings new advantages and time windows to China's manufacturing industry

First, China has demonstrated a strong institutional force and mobilization ability in epidemic prevention and control, providing a strong guarantee for enterprises to return to work and production.

Second, China is the largest country in manufacturing industry and the only country in the world with all kinds of industries. It has the advantages of the whole industrial chain, and can support industries nearby to ensure the production and supply capacity.

Third, it has excellent circulation infrastructure and circulation system. Good port, railway, airport and other facilities, as well as efficient logistics system, can quickly deliver products to all parts of the world.

In the future, the advantages and functions of these factors will continue to highlight, to a large extent, offset the disadvantages of China's rising labor costs. The development of foreign trade of Chinese enterprises will usher in a rare window opportunity period.

However, we should also be aware that there may be undercurrent under the calm sea. This year's new epidemic situation starts to reexamine this point of view and consider the following issues:

Why do our orders explode?

When the epidemic is over, can the order be "sustained"?

How much do they realize, what is the solution to this problem?

The outbreak of the epidemic has actually exposed the risks brought about by economic globalization. In order to resist the risks, more and more countries may start to rebuild their own industrial chains in consideration of economic security. It is uncertain how many orders will stay in China this year.

At the same time, the depreciation of the US dollar has brought great pressure on the appreciation of RMB to China's foreign trade enterprises. For most export enterprises, the profit space is greatly compressed, and the financial situation of enterprises is facing great challenges. In this way, can the impact of regional manufacturing partnership on China's manufacturing industry be offset?

According to statistics, China's manufacturing industry accounts for 65%, the population accounts for 64%, and the economic volume accounts for 55%, which is far greater than that of any other country in RCEP, which determines that China has an almost dominant and important position in RCEP. RCEP will divide the industrial chain around China, which is very beneficial for China to establish its own economic system and international sphere of influence.

For China, the good news from RCEP goes far beyond that. Interested friends can learn about it through many channels, I will not repeat here.

When I was talking about RCEP with an enterprise boss last week, I asked him if he had studied RCEP carefully and whether he had considered what changes it would bring to the development of the enterprise. The boss pondered for a while and asked me a question: "when will RCEP be fully implemented?"

Different from the academic circles' detailed analysis of the advantages and disadvantages of RCEP, the boss's problems go to the core.

There is no doubt that RCEP can bring huge dividends to Chinese manufacturing enterprises, but its full implementation is not achieved overnight. It may be three or five years, or maybe ten or twenty years. For enterprises, it is more important to live and try to catch the ride. If we simply consider what we can get from RCEP next year and the following year, it will be too early.

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