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The International Competitiveness Of Textile Industry Has Increased Or Declined.

2016/2/21 10:59:00 61

Textile IndustryInternational MarketCompetitiveness

At present, the production cost of China's textile industry has been rising continuously, and the profit margins of enterprises have been narrowed down, and the textile industry has gradually shifted to foreign countries.

After the entry into force of TPP, China's textile industry will accelerate its pfer to TPP members in Vietnam, Malaysia and the United States.

In order to enjoy preferential treatment in the market of TPP member countries and reduce dependence on imported yarn in non TPP member markets, Vietnam and Malaysia urgently need funds and technology to develop their own textile industry. This just caters to the accelerated demand of China's textile industry and the opportunity for China's textile industry to accelerate its pfer to Vietnam and Malaysia.

In the United States, because of the low price of natural gas and cotton materials, plus local tax preferences and subsidies, the cost of the US textile industry is lower than that of our country, and it will also attract more investment from Chinese textile enterprises.

Data from the International Federation of textile manufacturers shows that the cost of the spinning industry in the United States is about 30% lower than that of our country.

Although the competitiveness of China's textile industry has been maintained at the top of the world, with the rapid increase in labor costs, a significant increase in pollution control and emission reduction costs, the declining international competitiveness is an indisputable fact.

In the 2008~2014 years, China's textile and garment industry revealed a comparative advantage index (RCA), showing a downward trend. The RCA index of textile industry dropped from 3 to 2.7, and the RCA index of clothing industry dropped from 3.5 to 3.2.

After the entry into force of TPP, China's textile and apparel industry

TPP

The market treatment of member countries is at a disadvantage, which will lower the overall international comparative advantage of China's textile industry. In addition, Vietnam, Malaysia and other countries will vigorously develop the textile industry, the investment will increase rapidly, the industrial chain and supporting industries will gradually improve, the comparative advantage of China's textile industry will continue to decline, and the international competitiveness will be aggravated.

After the entry into force of TPP, subject to the rules of origin and the expansion of raw material demand of TPP member countries, the pricing power of China's cotton and chemical fibers will be under pressure.

On the one hand, the pricing power of chemical fiber in China is subject to other countries.

Although China is global chemistry

fibre

The production of the largest country, but the production of chemical fiber important raw material PX heavily rely on Japan, Korea and other countries to import, the right to speak less, and the domestic chemical fiber industry structure, the proportion of conventional products is too high, the proportion of high-tech fiber is too low, plus the lack of international influence of large enterprises, big group, China chemical fiber export pricing.

discourse power

Smaller.

After the entry into force of TPP, in order to enjoy zero tariff treatment, the origin rules of "starting from yarn" will increase the yarn production capacity of the TPP area and increase the productivity of the chemical fiber at the front end of the yarn, resulting in an increase in the substitution of Chinese chemical fibers and a corresponding reduction in the export bargaining space.

On the other hand, China's cotton demand needs a large number of imports, especially for TPP member countries. The import of cotton from TPP member countries accounts for 35% of China's total cotton imports. The expansion of TPP's domestic textile industry will stimulate domestic demand for cotton and is not conducive to China's cotton import procurement.

In particular, the two largest cotton importers in the United States and Vietnam, China's bargaining power to purchase cotton from these two countries will also be reduced.


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