Many factors indicate that my country's textile and garment industry chain may shift to Southeast Asia

China's textile and clothing market is relatively dependent on exports. According to incomplete statistics, China's textile and clothing exports will reach more than 270 billion U.S. dollars in 2018, while domestic textile and clothing retail sales will reach about 200 billion U.S. dollars. The United States is the largest exporter of Chinese textiles and clothing products. In 2018, exports of cotton textiles and clothing products to the United States accounted for about 17% of China’s total exports of cotton textiles and clothing products. The United States imposes tariffs on textiles and clothing products, which will directly increase the export cost of Chinese textiles and clothing products and weaken the price competitiveness of Chinese textiles and clothing products. In recent years, the textile and garment industry in Southeast Asian countries (mainly Vietnam) has developed rapidly. Zhongyu Information predicts that Vietnam may seize some of the textile and apparel market shares originally exported to the United States by China. The escalation of the Sino-US trade war has also directly accelerated the devaluation of the renminbi. Within one month after Trump announced the tax increase in April 2019, the yuan depreciated from 6.7 to 6.9 against the U.S. dollar, a depreciation of about 3%. Since the start of the Sino-US trade war in March 2018, the exchange rate of the renminbi against the US dollar has fallen from 6.3 to 6.9, or about 9.5%. Although China’s exports of textiles and clothing products have temporarily depreciated, the sharp depreciation of the entire currency, such as Argentina and Turkey, caused the country’s financial crisis, which led to the deterioration of the economic situation and the outflow of more funds from the economy. Zhongyu Information thought about the trade war together. The long-term impact of the rapid depreciation of China's textile and apparel product market is not optimistic. China's textile and apparel industry is undergoing structural adjustments for survival of the fittest. According to data from the National Bureau of Statistics, the gross profit of China's textile and apparel industry dropped from 12.14% at the end of 2012 to 10.16% at the end of 2018. In the textile and apparel industry, the trend is to increase labor costs, environmental protection costs and other costs, and gross profit margins continue to decline. In 2018, the gross profit margin fell to the lowest point in the past 10 years. The number of textile companies with annual revenues of more than 20 million also dropped from more than 22,000 in March 2011 to more than 19,000 at the end of 2018. Fierce industry competition has accelerated the tendency of textile companies to stay in small businesses and move factories abroad. At present, the trade war between China and the United States has entered a deadlock stage. If the United States imposes taxes on another 300 billion US dollars of goods from China in the later period, it will affect China's textile and clothing exports to a certain extent. Observers believe that the trade war will accelerate the transfer of some Chinese textile and apparel companies to Southeast Asia.