Garment Exports Decline, Highlight The Severe Foreign Trade Situation

As the traditional export advantage of Shandong, garment export is facing a dilemma of follow-up.

The latest customs statistics show that in the first 8 months of this year, the export garments of our province were US $7 billion 320 million, down 1.1% from the same period last year.

The reason is, on the one hand,

The slow recovery has led to the continued weakening of clothing external demand; on the other hand, the overall cost of the company remains high, and the signs of order shifting are becoming increasingly evident.

It is understood that the cost of labor in India, Vietnam and Pakistan is only 38% of that in China, and the cost of raw materials is equivalent to 70%. The export price of textile and clothing is 10% lower than that of China.

In recent years, thanks to the rise of the total factor cost, China

Over the years, processing advantages have been gradually weakened, and some domestic production enterprises have begun to move production lines. Sporting goods giants Nike and Adidas have also closed factories in China, and overseas orders have shifted to those countries with lower production costs.

It is worth noting that the gap between domestic and foreign cotton prices has led to the excessive cost of domestic cotton, resulting in a serious decline in the competitiveness of China's cotton textile industry chain, which has become a bottleneck for textile enterprises.

Since last September, the price of international cotton has declined, and the price gap with the domestic market has been widening.

A new round of cotton temporary purchase and storage policy is about to start in China.

Increasing inventory has also increased the pressure on enterprises to survive.

Flush IFIND statistics show that as of August 29th, the total inventory of 80 listed companies in the textile and apparel industry in the first half of the year amounted to 67 billion 166 million yuan.

In addition, this year's trade friction from Europe and the United States has frequently restricted China's clothing exports.

According to the statistics of Shandong Provincial Department of Commerce, the import and export volume of our province decreased by 5.1% in August, the biggest decline since February this year.

As a traditional export advantage project in Shandong, the decline of garment export highlights the gravity of the foreign trade situation, which should attract enough attention from all sides.

It is gratifying to note that in order to deal with the risk of foreign trade decline, the State Council on the 12 day discussed and adopted the "opinions on promoting stable growth of foreign trade", and launched measures to speed up the export tax rebate, expand the scale and coverage of export credit insurance, and improve the level of trade facilitation, so as to lighten the burden on enterprises.

The Shandong provincial government has also issued a circular recently to introduce ten measures to improve the efficiency of port clearance and promote the development of foreign trade and economic cooperation.