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[Industry Information] Cotton textile enterprises actively respond to Sino-US trade disputes!

by:Sunshine     2021-02-27
Recently, the China Cotton Textile Industry Association went to Guangdong for investigation, mainly to understand the changes in the market after the escalation of Sino-US trade friction, the status quo of enterprises and the voice of enterprises, etc., and visited yarn traders, large international textile enterprises, and downstream weaving enterprises. Each link of the industrial chain presents the following characteristics. 1. The inventory pressure of textile enterprises has increased, and the pace of production and sales has slowed. As the main downstream market of China’s cotton textile industry, the operating conditions of its multiple clusters can be regarded as a barometer of the operating conditions of the industrial chain. Since the escalation of friction, the market’s wait-and-see sentiment has been continuously transmitted from the terminal to the upstream. As the spinning link that is under pressure at both ends, the current operating pressure is the greatest, mainly manifested in three points: First, it is different from the polarization caused by the difficulties encountered by the industry in the past. The pressure on the second largest, medium and small enterprises is almost the same. As some large and medium-sized enterprise banks apply for loans relatively higher than small and micro enterprises, and their own funds account for a relatively small proportion of their own funds, the risk of the capital chain at this stage is even greater than that of small and micro enterprises; second, the downstream fabric factories are not actively stocking yarn to reduce the risk of inventory backlog , The production and sales of spinning mills are not smooth, and inventories continue to depreciate; third, although China’s exports of US textiles only account for about 16% to 20% of China’s total exports, because the textile industry is an inventory industry, the levy of tariffs has caused confidence to decline in a short period of time , Oversupply has caused several major markets outside the United States to slow down orders or take the opportunity to lower prices. This domino-type superimposed conduction effect magnifies the direct impact of trade frictions on Chinese cotton textiles. 2. The company did not give up, actively responded to it, stabilized its employees, and waited for a turn. For trade disputes, Chinese cotton textile companies did not lose confidence. Various types of companies combined their own characteristics and actively responded. The rematch of base orders to reduce the impact of trade frictions. After the reduction of orders in domestic enterprises, workers are allowed to take shifts to work by increasing shifts, and only moderate wages are reduced. This move stabilizes employees, reduces attrition, waits for transfers, and makes full production at any time. Get ready.  3. Many companies call on the state to promptly introduce relevant measures to help companies tide over the difficulties.    The companies in the survey called for the cotton textile industry to be one of the country’s traditional industries and civilian production industries, as well as an important basic industry in my country. The complete industrial chain of my country's textile industry and the advantage of leading the world's trends cannot be surpassed by other countries. It has also helped my country solve the two major livelihood problems of people's clothing and workers' employment. Although it is not as high-tech and focused as many emerging industries and conceptual industries at the technological level, and may even be at the bottom of my country’s industrial pyramid system, for the pyramid, the foundation of the bottom determines the height of the top. If basic industries are large-scale The outflow will inevitably cause the foundation of the industrial system and social stability to be shaken, and it is very irreversible. Therefore, it is hoped that under the special environment of Sino-US trade disputes, the country will not only pay attention to the high-tech industry, but also pay more attention to the cotton textile industry. It is recommended that relevant departments introduce relevant measures to stabilize raw material prices, reduce the burden on enterprises, and boost market confidence. Help companies tide over difficulties! Previous post: Weifang, Fujian launches special rectification work in key industries of non-woven fabrics
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