Feedback Here

fbook  tweeter  linkin  google
Global contents also translated in Chinese

China looks overseas to mitigate trade war effects on apparel, textile sector

"China first proposed the Belt & Road initiative in 2013. The initiative became one of its three major national development strategies in 2014. In July 2019, the Chinese government signed co-operation agreements with 136 countries along the route, which runs through three continents. During the initiative’s first five years, the total trade volume between China and countries along the Belt & Road route exceeded $6 trillion"

 

China looks overseas to mitigate trade war effects on apparel textile sectorChina’s textiles industry was one of the first markets to open up globally. The country textile exports increased 3.5 per cent in 2018, accounting for around 37.6 per cent of the world’s total apparels. Although its purchasing power slowed slightly, the Chinese textiles industry still experienced high demand in the domestic market. China offers a safety net to its industry due to its huge population. Domestic apparel sales, which grew 8 per cent in 2018, continued to grow in 2019, though not as fast as previous years.

However, investments in the industry slowed as US-China trade war frictions knocked confidence. The country’s investments in fixed assets, which grew 5 per cent in 2018, also slowed in the first half of 2019. Investments focused on technology and innovation, resulting in increased productivity. The country is now entering a new era in textile manufacturing and design with a focus on technology and innovation, cultural and local talent and sustainability.

Overseas investments crosses $6billion markChina looks overseas to mitigate trade war effects on apparel textile sectors

China first proposed the Belt & Road initiative in 2013. The initiative became one of its three major national development strategies in 2014. In July 2019, the Chinese government signed co-operation agreements with 136 countries along the route, which runs through three continents. During the initiative’s first five years, the total trade volume between China and countries along the Belt & Road route exceeded $6 trillion. The textiles industry makes up a large part of this trade. 

By 2018, Chinese textiles industry reportedly invested $6.5 billion in countries along the Belt & Road route. The textile industry in the country has made further investments overseas, upstream and downstream.

Opportunities for other countries to step in

With 18 per cent of China’s textile exports going to the US, the country forms its largest export market for textiles. China is also the largest exporter of apparels and textiles to the US, accounting for 38 per cent of the nation’s total imports.

However, ongoing tensions, tariffs and uncertainties have opened up opportunities for other countries to step in. Indonesia, which recently experienced a decrease in purchasing power, has opened its market to Chinese investment as the country plans to develop local e-commerce industry and start-ups.

 

 
LATEST TOP NEWS
 
 
MOST POPULAR NEWS