Since the beginning of this year, the textile foreign trade market has been under pressure, facing challenges such as weakening external demand in European and American markets and intensifying international competition. Because of this, foreign trade textile companies did not receive large orders during the peak season in March, but only a few orders were placed sporadically.
Relations between China and the United States are becoming increasingly tense, and bilateral trade exchanges are restricted.
The Sino-US trade war has been going on for five years, and this war without gunpowder is far from over. It started with tariffs, one link after another, and then involved all aspects of trade. Finally, it evolved into a technology war, a talent war, and a financial war, which got out of hand.
Recently, the news that “tens of millions of dollars in Chinese textile and apparel have been detained” has spread throughout the textile industry, and trade disputes within the industry have returned.
A textile trader who mainly exports to the United States said: “Under the influence of the Sino-US trade war, the number of orders placed by customers is also gradually decreasing. For example, the original order of 10 million is now only 7 million. And these 7 million The orders are still those with demanding requirements and complex process operations. To put it simply, the orders we receive now are all ‘leftovers’, and high-quality orders have been transferred to Southeast Asian countries.”
Exports have been suppressed and orders have been transferred to Southeast Asia.
Obviously, we also learned from the cloth boss that the current phenomenon of textile fabric and clothing order transfer is becoming increasingly obvious. China is the largest market for global textile and apparel exports. However, in recent years, with the rapid rise in labor costs in China and the development of markets such as Southeast Asia, China’s market share has declined.
Vietnam’s textile and apparel exports in 2022 will be US$37.566 billion, an increase of 14.7% over the previous year.
In December 2022, Bangladesh’s clothing exports increased by 9.5% year-on-year, and surged by 71%, 50% and 27% year-on-year in July, August and November.
It can be seen that my country’s clothing foreign trade orders have shifted significantly. Especially in the past few years, under the influence of the epidemic, high shipping costs and global inflation have caused orders returning to the country to shift again, either to areas with lower costs, to areas with closer geographical locations, or to areas with a more stable trade environment. market.
This year, against the background of complex international situations such as rising inflation, slowing global economic growth, and the Russia-Ukraine war, global demand for textiles and apparel has weakened, which has affected the import and export of various markets. However, domestic textile companies have not been hindered and are working hard to expand new markets and seize share.
According to CCTV News: Recently, foreign trade companies have been actively responding, finding ways to stabilize orders, and at the same time expand into new markets. The resilience of China’s foreign trade is constantly increasing.
Expanding diversified markets has effectively enhanced the stability of foreign trade exports. In the first two months of this year, my country’s exports to ASEAN and countries along the “Belt and Road” increased by more than 15%. At the same time, in response to the shift in orders brought about by the adjustment of the international division of labor, many foreign trade companies have taken the initiative to seek changes and began to build their own brands to get rid of their dependence on OEM orders.
Although the actual foreign trade market has not yet experienced the relaxation of the foreign trade situation, as companies actively respond and go out to expand new markets, “with time, people will see the people”, and some results will definitely be seen in the future. The second half of the year itself is the main ordering stage for the foreign trade market. As the foreign trade situation continues to recover, the subsequent market trends are still worth looking forward to.
From the perspective of downstream demand, the placement of foreign trade orders was not smooth after the beginning of the new year, and none of the orders that should have been placed were placed. April may usher in a wave of explosive growth. With the recovery of the economy in the second half of the year, my country’s textile foreign trade exports still have certain advantages, and opportunities may come later.
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