Analyze the problems faced by China's textile and garment industry in 2010

With the gradual recovery of the global economy and the cumulative effect of the country’s supporting policy on the textile and garment industry is gradually emerging, China’s textile and apparel exports are at a critical stage of stabilization and recovery, but the textile and apparel industry still faces the following problems:

First, the profit space of textile companies has been compressed. Since 2009, with the market conditions for cotton yarn and cotton cloth getting better, domestic cotton demand has picked up and prices have continued to rise. As of February 26, the domestic price of Grade 3 cotton has reached 14,990 yuan per ton, which is 0.75 percentage points higher than that at the beginning of the year (14,879 yuan/ton), which is higher than that of the same period of 2009 (11,436 yuan/ton). 3554 yuan, a rise of 31.08%. In the absence of external demand, there is a sharp contrast between the accelerated price increase of raw materials and the price cut in the end market, and the profit margin of enterprises is getting smaller and smaller. At the same time, with the recovery of the domestic economy, *** will probably appreciate again in 2010, which will further reduce the company's profit margins.

Second, international trade protectionism is increasingly gaining ground. Since the outbreak of the financial crisis, governments in various countries have been facing increasing trade frictions in order to protect their own industries and to build trade barriers by raising safety, hygiene and environmental standards and adopting anti-dumping and anti-subsidy measures. Under the trade relief framework of the WTO in 2009, more than 30 foreign projects and preliminary examinations of China's export of textile products were investigated, including chemical fiber filaments, chemical fiber staples, curtains, webbing, electric blankets, and cord fabrics. , cotton yarn, linen, linen, narrow-width looms and other products from raw materials to the terminal. In January 2010, there were 14 foreign cases of Chinese textile recalls, including 5 children's plush toys and 9 children's clothing. The notified countries included the United States, Canada, Hungary, Turkey, and Ollie. Year-to-date, more than 10 foreign anti-dumping and countervailing cases against China have occurred. The products involved include polypropylene, nylon filament yarns, circular looms, polyester staple fibers, and weaving pads.

Third, the carbon emission index is another excuse for Europe and the United States to restrict the export of China's textile products. With the convening of the Global Climate Conference in Copenhagen, Denmark, low-carbon economy has attracted widespread attention, and the country will conduct more stringent control over pollution emissions and energy consumption levels. As far as the textile and clothing industry is concerned, printing and dyeing companies in the industry will be under greater pressure. At the same time, developing countries are currently participating in international carbon emissions trading mainly through the international carbon trading (CDM) market mechanism. China is at the bottom of the entire carbon trading industry chain, and the markets and standards for carbon trading are overseas. The developed countries have long been using their technical standards to limit China’s textile exports, and CO2 emission indicators may be another excuse for restricting China’s textile exports.

Fourth, after the Spring Festival, various localities have experienced “employment shortages” and forced enterprises to follow suit and raise their salaries. The difference from previous years is that this year's workers are not only tight in the Pearl River Delta and the Yangtze River Delta. Workers in traditional labor export regions such as Anhui have also started to suffer from shortages of workers. The "labor shortage" seems to be becoming a national problem. In the Yangtze River Delta and the Pearl River Delta, many companies have raised wages, lowered the restrictions on sex, age, etc., in order to solve the problem of labor shortage. Experts in the industry believe that, on the surface, the economy is picking up and orders are picking up are the triggers for this recruitment crisis. But the underlying reason is that the era of cheap labor is gone forever. Low wages, which are not directly proportional to the intensity of labor, have become less attractive to migrant workers. This is the most direct cause of “recruitment difficulties”. The textile industry is a traditional labor-intensive industry. The "labor shortage" has become a major problem for many textile and garment companies.