Domestic demand market has become an important support for China's textile industry

According to a report released by the Statistics Center of China Textile Industry Association a few days ago, the economic operation of China's textile industry grew steadily in 2007. According to the revised data, it is expected that the total industrial output value of enterprises above the scale of the textile industry will be 3050 billion billion yuan, an increase of 21.9 percent over the same period last year.

According to the report, enterprises above the same size in the textile industry are expected to achieve a total profit of 115.2 billion billion yuan in 2007, an increase of 32.0 percent over the same period last year; exports (full caliber) will reach 177.2 billion billion US dollars, an increase of 20.1 percent over the same period last year; and imports (full caliber) will reach 18.9 billion billion yuan, an increase of 4.4 percent over the same period last year.

Experts said that since this year, China's textile industry has overcome many unfavorable factors, such as international trade friction, RMB appreciation, export tax rebate rate reduction, interest rate increase, and price rise of production factors, and constantly improve its technical level, management level and innovation ability, and show a steady growth trend in production, sales, export and efficiency.

In terms of operation, the development of the textile industry this year has shown five major characteristics: the further development of the domestic demand market has become an important support for the steady growth of my country's textile industry; the international market demand is stable, and Asian and African developing countries have become a new important growth point for my country's textile and apparel exports; The export trade structure has been further improved, and the export growth mode has changed, the growth rate in production, economy, investment, export and other aspects is obvious; technological progress has an obvious effect on the competitiveness of the industry, absorbing the adverse impact of rising costs on the industry.

While the textile industry is growing steadily in various indicators, some operational resistance cannot be avoided.

First of all, the rising international crude oil prices have increased the pressure on the production costs of chemical fiber enterprises. Secondly, starting from January 1 this year, a sliding tax of 6% to 40% will be imposed on a certain amount of cotton imported outside the quota. The implementation of the new sliding tax policy has promoted the use of domestic cotton to a certain extent, but because the price of domestic cotton is much higher than the actual price of imported cotton (excluding the reason for sliding tax), therefore, the production cost of cotton spinning enterprises is indirectly increased.
Third, affected by the tight international supply and demand, wool prices have continued to rise this year, becoming the biggest problem encountered by the wool textile industry.
In addition, this year's coal, oil, electricity, etc. have also maintained a sustained upward trend. What is particularly prominent is that labor prices have been showing a rapid growth trend, which has become the most important cost pressure faced by textile companies.

At the same time, the tightening of macro-control policies in the long run is conducive to promoting the textile industry to adjust the industrial structure and industrial upgrading, but at present, the textile industry, especially the profitability of small and medium-sized enterprises have a significant negative impact.

The continued appreciation of the RMB exchange rate has become the biggest difficulty facing textile export enterprises.
The reduction of export tax rebates, the payment of ledger deposits and the implementation of processing trade restriction policies will become a difficult operating burden for textile export enterprises, especially small and medium-sized enterprises, in the short term.
Regarding the development trend of my country's textile industry in 2008, industry insiders said that under the background of both joys and sorrows, the profitability of the textile industry in 2008 is expected to remain basically stable, and the possibility of a significant decline is unlikely, and it is basically maintained at the current level.

As a "big exporter", the industry expects that the growth rate of China's textile and clothing exports to the world will remain at about 15% next year.

In addition, the Guojin Securities report said that due to the slowdown in the growth of industry benefits, the continuous improvement of costs and changes in the environment, the trend of polarization of enterprises in the textile industry is intensifying, of which 8.9 per cent of corporate profits account for 39 per cent of the industry, while the other 1/3 of the enterprises account for only 9.15 per cent of the industry's total profits.
In the future, with the slowdown of export growth in the industry, the trend of integration will be further intensified.