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China-U.S. Textile Business Dialogue, these are the highlights!

Release time:

2023-09-07 14:43

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 On June 8, Sun Ruizhe, President of China Textile Industry Federation (CTIF), and his delegation had a video dialogue with American Cotton Merchants Association (ACMA) Chairman Bao Weilin and President and CEO Abel in Beijing. Mr. Xu Yingxin and Mr. Duan Xiaoping, Vice Presidents of China Textile Industry Federation (CTIF), Mr. Yuan Hongping, Deputy Secretary General and Director of Foreign Affairs Office, and Mr. Zhu Beina, President of China Cotton Textile Association (CCTA) attended the meeting.
  Bao Weilin and Ai Bo first expressed gratitude to the China Textile Federation, that under the current impact of the epidemic, especially in the first phase of the U.S. and China's economic and trade agreements to gradually implement the background of the U.S. textile industry to carry out a dialogue, exchange of information and the two sides of the concerns of the issue is very necessary to explore and discuss.
  Sun Ruizhe, president of China Textile Industry Federation, said he was pleased to have a high-level dialog with the U.S. Cotton Merchants Association. Since the outbreak of the epidemic, the American Cotton Merchants Association has twice sent a letter to China Textile Federation to express their greetings, introduce the latest developments in the U.S. cotton industry, and convey the good will to provide high-quality cotton for the Chinese market and support the recovery of China's textile industry. In this regard, China Textile Federation expressed deep appreciation.
  Sun Ruizhe pointed out that the epidemic has caused a huge impact on global supply and demand, and the only way for the global supply chain to better weather the storm is to unite and cooperate. China's textile industry is willing to strengthen communication and exchange with the U.S. cotton industry, and jointly maintain the balance and stability of the global supply chain.
  To this end, Sun Ruizhe put forward several initiatives:
  ✦ One is to strengthen international cooperation on epidemic prevention materials, especially medical textiles
  ✦The second is to jointly maintain the stability of the global supply chain and industrial security;
  ✦Third, to jointly maintain a global open and cooperative environment.
  Mr. Ebb, president and CEO of the Cotton Business Association of America (CBA), expressed his agreement and support, and introduced the recent situation of the U.S. textile and cotton industries. Similar to the situation in China, at the beginning of the epidemic, many U.S. textile companies were in a state of temporary closure and barely holding on, with the exception of a handful of companies producing medical protective products and equipment. Domestic market textile consumption almost stagnant, apparel sales fell sharply, the value of textile-related futures fell as much as 35%. With the epidemic gradually under control, the United States opened the road back to work and production, stores have resumed operations, consumers began to spend.
  In May, the U.S. Department of Agriculture released a report on the 2020 U.S. cotton acreage, cotton production and cotton volume estimates. The USDA believes that U.S. cotton acreage in 2020 will be essentially unchanged from 2019. The Cotton Dealers Association of America sees a decrease in acreage, but an increase in cotton production and use. With the first phase of the U.S.-China economic and trade agreement, this year's U.S. cotton (especially after the new cotton in September) exports to China are expected to increase.
  Xu Yingxin, vice president of the China Textile Industry Federation, introduced the latest operation of China's textile industry, especially since the new crown epidemic, the resumption of work and production across the industry, the current sustainable development of the industry is facing the main difficulties and positive factors for future development.
From the Chinese Lunar New Year since the outbreak of the epidemic, China's textile and apparel enterprises have experienced several stages of stoppage of work and production, one after another to resume production, resumption of work and resumption of production in full swing. By April, the industry's overall work rate stabilized at about 90%. With the spread of the epidemic around the world, the lack of domestic and foreign demand, the industry-wide workload decline, a large number of enterprises encountered production and operation difficulties.
  January to May this year, China's textile industry, total economic output, industry investment, exports and corporate profits were negative year-on-year growth. The main difficulties and problems are: a large number of overseas orders were canceled, enterprises are facing serious default risk; impact has a conductive, upstream and downstream of the industrial chain are affected; slow recovery of international demand, the industry's export decline situation is grim.
  On the positive factors of industry development, Xu Yingxin talked about, since the epidemic, in addition to all kinds of risk challenges, we also see the development of China's textile industry endogenous momentum and positive factors. Chinese textile enterprises do their best to ensure the supply of masks, medical protective clothing and other anti-epidemic materials for the world to provide medical protection material security. At the same time, with the accelerated restoration of the order of production and life in Chinese society and the gradual recovery of the domestic demand market, the development of the industry has strong support.
  China Cotton Textile Industry Association President Zhu Beina introduced the recent national cotton textile industry situation.
 
From January to April, the main revenue, export delivery value, and total profit of cotton textile enterprises all declined year-on-year. Yarn and cloth production of enterprises tracked by the China Cotton Industry Association declined. Since mid-February, enterprises gradually entered the state of resumption of work and production. from mid-March, with the spread of the epidemic around the world, overseas orders canceled seriously, the enterprise start-up rate gradually declined, the purchase of raw materials fell.
  After China and the United States signed the first phase of the economic and trade agreements, China's imports of U.S. cotton volume growth. 1-April, in China's total imports of cotton fell 12%, China's imports of U.S. cotton rose 59%. Especially in April, China's imports of U.S. cotton accounted for 57% of the month's imports. At present, due to the U.S.-China trade relations still have greater uncertainty, the domestic cotton textile enterprises for the purchase of imported U.S. cotton is more cautious, not conducive to the sale of U.S. cotton in the Chinese market. Research has learned that the use of non-cotton fiber enterprises willing to rise, that the use of non-cotton fiber is conducive to enhance the added value of the product.
  Exports, the first quarter of China's cotton textiles and apparel exports fell 24% year-on-year. The U.S. market exports fell 41% year-on-year. Among them, exports of U.S. cotton textiles fell 33% year-on-year, cotton clothing fell 42% year-on-year.
  Comprehensive view, the first quarter, in addition to the March cotton textile industry boom slightly improved, the rest of the month are in a state of lack of prosperity. Recent domestic market slightly improved, but the market recovery still needs time, May industry boom is still not optimistic.

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