Beijing [China], July 9 (ANI): Due to the shrinkage of global markets and subsequent fall in demand, Chinese Textile Industries suffered profit erosion throughout the pandemic period and will continue to bear the loss due to rising raw material prices, read a report by First Finance and Economics Daily of China.
The report revealed that since the onset of 2020, the textile industry has been experiencing massive losses as the industry is unable to raise product prices due to the pandemic.
Moreover, orders are 40 per cent lower than last year, the report added.
According to the estimate of the China Chamber of Commerce for Import and Export of Textiles, the scale of China's textile and apparel order transfer was about 6 billion US dollars in the first half of 2020, of which the cotton textile order transfer scale was about 1 billion US dollars.
Twenty-six per cent of companies underlined that the proportion of outbound customer orders was more than 30 per cent, and 39 per cent of companies said that the proportion of outbound customer orders was between 10 per cent and 30 per cent, the report by First Finance and Economics Daily of China stated.
Meanwhile, more than 90 per cent of the enterprises said that the current order schedule has been shortened compared with the second half and fourth quarter of last year and almost 59 per cent of the companies' orders are scheduled for 13 months.
As per the import and export data, the growth rate of China's apparel and home textile products showcased a relatively obvious slowdown trend as the Industry insiders revealed that this year most garment factories' orders will be completed by September.
Due to industrial transformation and upgrading, changes in the layout of the industrial chain, and the impact of tariffs imposed by the United States on China, there was an outflow of Chinese export orders before the outbreak of the COVID epidemic, however, the production continued only till November.
According to data from the US Department of Commerce, China's share of US cotton textile and apparel imports in 2021dropped from 23.5 per cent in 2019 to 17.1 per cent, and its share of cotton apparel imports dropped from first place in 2019 to second place, and Vietnam became the second major supplier.
China's share of US cotton textile and apparel imports slipped to 15.3 per cent, which has been surpassed by Vietnam, Bangladesh followed by India.
In fact, the main reason for the poor market was the lack of demand as the consumer market was frozen due to epidemic prevention and control and the shrinkage of foreign markets.
Cotton textile orders are mainly transferred to India, and clothing orders are mainly transferred to countries such as Bangladesh, Vietnam, India, Indonesia, and Cambodia. The China Chamber of Commerce for Import and Export of Textiles recently conducted a survey on enterprises, and 85 per cent of the enterprises indicated that the outward migration of customer orders was obvious, the report read. (ANI)