Due to shrinking global markets and subsequent slump in demand, China’s textile industries have suffered profit erosion throughout the pandemic period and will continue to suffer losses from rising material prices reveals a report by the First Finance and Economics Daily of China. The report revealed that since the beginning of 2020, the textile industry is suffering massive losses as the industry is unable to raise the product in pandemic. In addition, orders are 40 percent lower than last year, the report adds.
According to the China Chamber of Commerce for Textile Import and Export estimate, the magnitude of China’s textile and apparel order transfer was about 6 billion US dollars in the first half of 2020, whose transfer scale of cotton textile orders was about 1 billion US dollars.
Meanwhile, more than 90 percent of enterprises said the current order schedule was shortened compared to the second half and fourth quarter of last year, and nearly 59 percent of enterprise orders are scheduled for 13 months. According to import and export data, the growth rate of apparel and home textile products in China showed a relatively obvious slowing trend, as industry insiders revealed that this year most orders from garment factories will be completed by September.
Due to industrial transformation and upgrading, changes in the industrial chain layout, and the impact of tariffs imposed by the United States on China, there has been an outflow of Chinese export orders. Before the outbreak of the COVID outbreak, however, production continued only until November.
China’s share of US imports of cotton textiles and apparel fell to 15.3 percent, overtaken by Vietnam, Bangladesh followed by India. In fact, the main reason for the weak market was the lack of demand as the consumer market was frozen due to epidemic prevention and control and shrinking overseas markets.
