China’s textile industry is facing downward trend and the difficulties

The author from the China Textile Industry Association was informed that since 2008 China’s textile industry is facing downward trend and a lot of difficulties.

According to the briefing, the textile industry is the pillar of China’s traditional industries and important people’s livelihood, but also with international competitive edge industries. Three decades of reform and opening up, especially into the twenty-first century, globalization and scientific and technological progress in the background, China’s textile industry has been sustained and rapid development. Industrial restructuring has made remarkable progress. Since 2007 China’s textile industry to external economic and policy changes have taken place in a series, the RMB appreciation, export tax rebate cut, monetary tightening, rising value of production factors, especially the United States sub-loan crisis, the September 2008 outbreak of international financial crisis, so that the situation of China’s textile industry has obviously been a declining trend.

2008 economic performance of China’s textile facing a very grim situation, the specific performance in the following aspects: production pace is slowing down, in November 2008 before the above-scale textile enterprises realized an accumulative total industrial output value grew four percent, higher than the same period last year declined 8.2 percentage points, mainly chemical products, gauze, clothing production to achieve single-digit growth. Over the same period, more than industry-wide million cumulative investment in fixed assets grew 8.75%, higher than the same period last year dropped 22.2 percentage points.

In addition, the overall shrinkage of exports, the former industry-wide in November were 173.2 billion U.S. dollars exports of textiles and garments, up 7.8 percent net increase, higher than the same period last year declined 12.3 percentage points.

Last year, the effectiveness of China’s textile industry experienced a negative growth and reduced production and sales growth overall, while industry profits fell sharply. November over the previous scale of the textile industry growth rate of negative total profit. Industry losses from the previous year into a seven expanded to 2 percent over last year. As a result of decreased effectiveness of enterprise operating difficulties, above-scale textile enterprises engaged for the first time the number of negative growth.

China Textile Industry Association said that China’s textile industry faced this year, the domestic economic environment, especially the policy environment is doing better than last. Government has proposed a capital increase of expanding domestic demand, such as transfer agencies face a series of domestic and international economic environment, timely and flexible response to the decision-making. 2008 China’s economic fundamentals remain healthy, which will resume the development of the textile industry this year, play a positive role in confidence.