Editor's note: On February 18, 2020, the Industrial Economic Research Institute of China National Textile and Apparel Council released the economic performance of my country's textile industry in 2019. In 2019, the industry's prosperity and the start of production are basically stable, and the domestic and foreign markets continue to be under pressure, with outstanding benefits and investment pressures. Development pressure will increase in 2020, but positive factors still exist. The following is the full text of the report.

In 2019, the domestic and international risks and challenges faced by the development of my country's textile industry have increased significantly. The entire industry has persisted in deepening supply-side structural reforms, continued to accelerate transformation and upgrading, and strived to overcome downward risk pressures. The overall prosperity and production conditions were generally stable. However, under multiple pressures such as the slowdown in domestic and foreign market demand, the more complex trading environment, and the continuous increase in overall costs, the growth momentum of corporate investment is weak, the level of efficiency is declining, and the main economic operation indicators are slowing down.

The industry's prosperity and the start of production are basically stable

In 2019, the overall prosperity of the textile industry is in an expansion range. According to the survey data of the China National Textile and Apparel Council, the textile industry prosperity index in the fourth quarter was 55.2, maintaining an expansion range of more than 50, and rebounding from the previous three quarters, reaching the highest value of the annual prosperity. The start and production of all links in the textile industry chain are generally normal. According to the National Bureau of Statistics, the capacity utilization rates of the textile industry (excluding chemical fiber and clothing) and chemical fiber industry in 2019 were 78.4% and 83.2%, respectively, which were higher than the national industry of 76.6 in the same period. % Of capacity utilization level. In the whole year, the industrial added value of enterprises above designated size in the textile industry increased by 2.4% year-on-year, and the growth rate was 0.5 percentage points lower than in 2018. In all links of the industrial chain, the chemical fiber, filament and industrial industries grew steadily, and the annual industrial added value growth rate was 11.9%, 15.6% and 6.9% respectively.

Continued pressure on domestic and foreign markets

In 2019, the growth rate of my country's domestic textile and apparel market has slowed down. According to data from the National Bureau of Statistics, in 2019, the national retail sales of clothing, footwear, and knitting textiles above designated size was 1351.7 billion yuan, a year-on-year increase of 2.9%, and the growth rate was 5.1 percentage points slower than in 2018; national online retail sales of clothing products A year-on-year increase of 15.4%, continuing to maintain a good double-digit growth level, but slowing down by 6.6 percentage points from the previous year.

Affected by weakening external demand and rising risks in the trade environment, the export situation of the textile industry is more severe. According to China Customs data, the cumulative export value of my country's textile and apparel in 2019 was 280.7 billion US dollars, a decrease of 1.5% year-on-year, and the growth rate was 5.3 percentage points lower than that of the previous year, but it was up 0.8 percentage points from the first three quarters of 2019. From the perspective of product structure, textile exports amounted to US$127.25 billion, an increase of 1.4% year-on-year; clothing exports amounted to 153.45 billion yuan, a year-on-year decrease of 3.7%. From the perspective of market structure, exports to emerging markets outperformed traditional markets. In 2019, my country’s exports of textiles and clothing to countries and regions along the “Belt and Road” increased by 3.7% year-on-year, while exports to the United States, Japan, and the European Union increased year-on-year. Decrease by 6.6%, 4.6% and 4.4%.

Outstanding benefits and investment pressure

In 2019, the profitability pressure of the textile industry has increased significantly, and the benefits of most links in the industrial chain continue to be under pressure. In the whole year, 35,000 textile enterprises above designated size achieved operating income of 494.364 billion yuan, a year-on-year decrease of 1.5%, and the growth rate was 4.4 percentage points lower than that in 2018; the total profit realized was 225.14 billion yuan, a year-on-year decrease of 11.6%, and the growth rate was lower than the previous year. 19.6 percentage points. Among the various sub-sectors, the total annual profit of the hemp textile, printing and dyeing and knitting industries achieved positive growth, with growth rates of 8.4%, 5.8% and 0.2% respectively, which were 20, 17.4 and 11.8 percentage points higher than the industry growth rate respectively. Throughout the year, the operating income profit rate of textile enterprises above designated size was 4.6%, a decrease of 0.5 percentage points from the previous year; the terminal industry profit rate level was relatively stable, and the operating income profit rate of the apparel, home textile and industrial industries was 5.5%, 5.1% and 5.5% respectively. 5%. The finished product turnover rate of the textile industry was 14.9 times/year, and the total asset turnover rate was 1.2 times/year, both of which were slightly slower than the previous year; the three-cost ratio was 6.9%, slightly higher than 0.1% of the previous year, indicating that the company’s operating pressure is relatively high. Big.

The scale of investment in the textile industry has shrunk. In 2019, the national fixed asset investment completed decreased by 5.8% year-on-year, and the growth rate slowed by 10.8 percentage points from the previous year. In terms of industries, the investment in the textile and chemical fiber industries decreased by 8.9% and 14.1% year-on-year respectively; the annual investment in the clothing industry achieved a positive growth of 1.8%, which was 3.3 percentage points higher than the previous year.

Development pressure will increase in 2020, but positive factors still exist

2020 is the final year of building a well-off society in an all-round way and the "13th Five-Year Plan". The external situation facing my country's textile industry will become more complex and severe, and the development prospects will be more uncertain. From the perspective of risk factors, the complex situation of global economic turbulence and increased risk points is intertwined with domestic structural and cyclical issues. Normalization pressures such as rising costs and intensified competition still exist, putting greater pressure on the textile industry to maintain stable operations . The sudden new crown pneumonia epidemic at the beginning of the year not only caused direct economic losses to textile companies, but also caused companies to face the loss of foreign trade orders and intensified international competition for a period of time after the end of the epidemic, further increasing development uncertainty. However, from the perspective of positive factors, the overall global economy will continue to grow at a moderate pace, and the foundation for my country's macroeconomic long-term improvement will not change. Domestic macroeconomic policies will put more emphasis on stabilizing growth, preventing risks, and putting the improvement of the policy environment for small and medium-sized private enterprises in a more important position. In response to the impact of the new crown pneumonia epidemic, the state has begun to introduce various support policies to help enterprises gradually relieve operating pressure. The first phase of Sino-US economic and trade agreement is conducive to improving my country's foreign trade environment and market expectations, and reducing pressure on export enterprises.

In recent years, my country's textile industry has continued to advance on the road to becoming a textile power, and has achieved remarkable results in structural adjustment, transformation and upgrading, and its resilience to resist downside risks has been increasing. The textile industry will continue to adhere to the general keynote of seeking progress while maintaining stability, deepen the supply-side structural reforms, actively resolve the adverse effects of the new crown pneumonia epidemic, and strive to maintain economic operations within a reasonable range, so as to ensure the stable operation of the national economy and a decisive victory. Make due contributions to building a well-off society and promoting the successful conclusion of the "13th Five-Year Plan"! (Contributed by the Industrial Economic Research Institute of China National Textile and Apparel Council)