Sun Ruizhe: Textile Industry Takes The First Shot In The 14Th Five Year Plan

"In the face of the complex external situation, the textile industry has shown strong development toughness and vitality, and the stable operation advantage of a complete and high-quality modern industrial system has been consolidated. It has basically achieved a good start in the 14th five year plan, and has made positive contributions to the steady growth of the national economy, the protection of people's livelihood, the promotion of employment and the prevention of risks." Recently, sun Ruizhe, President of China Textile Industry Federation, pointed out in an interview with reporters that in 2022, the external development environment will become more complex and severe, and the textile industry still needs to actively respond to and resolve various risks and challenges, strive to maintain the basic stability of the economic situation, realize the steady improvement of the development quality, and achieve the goal of stabilizing the macro-economic market, continuously improving people's livelihood, and so on Make new contributions to the development goal of maintaining social stability.

Industry prosperity keeps expanding

A few days ago, the survey data of China Textile Industry Federation showed that in the four quarters of 2021, the prosperity index of textile industry continued to be in the expansion range of more than 50, with the highest value of 65.4 in the second quarter and the lowest value of 57.1 in the first quarter. In the fourth quarter, driven by the continuous recovery of the consumer market and the alleviation of the impact of electricity and production restriction, the prosperity index of the textile industry increased from 58.7 in the third quarter to 62.3, the highest level in the same period since 2018. It shows that with the recovery and stability of epidemic prevention and control and production and marketing situation, the overall business confidence of enterprises has improved, and the foundation for economic recovery of the industry has been further consolidated.

In addition, according to the data of the National Bureau of statistics, the capacity utilization rate of the textile industry and chemical fiber industry in 2021 will be 79.5% and 84.5%, respectively, 6.4% and 4% higher than that in 2020. In 2021, the industrial added value of Enterprises above Designated Size in the textile industry will increase by 4.4% year-on-year, and the growth rate will rise by 7% compared with that in 2020. Taking 2019 as the base period (the same below), the average growth rate in two years is 0.8%, and the production scale of the industry exceeds the level before the epidemic. Chemical fiber, industrial use, home textile, textile machinery and other industries achieved average positive growth in two years.

Domestic demand and foreign trade continued to recover and the performance was gratifying

In 2021, China's national economy continued to recover, and the development led to the steady release of consumption potential. The domestic demand market of textiles and clothing overcame the impact of continuous epidemic situation and extreme weather. Driven by the favorable policy environment of national protection of people's livelihood, promotion of consumption and various holiday consumption, the domestic demand market of textiles and clothing showed a sustained recovery trend. According to the data of the National Bureau of statistics, in 2021, the retail sales of clothing, footwear, knitwear and textiles of units above the national quota increased by 12.7% year-on-year, 19.3% higher than that in 2020, with an average increase of 2.6% in two years; Online consumption still plays a strong driving role in the domestic demand market. The retail sales of online wear goods increased by 8.3% year-on-year, 2.5 percentage points higher than that in 2020, with an average growth rate of 7% in two years.

In 2021, affected by the gradual recovery of the world economy and the return of export orders, the export of China's textile industry will achieve a rapid growth. The growth rate will obviously exceed the level before the epidemic, and the total export volume will reach a record high. Under the special conditions that the global logistics and people flow are not smooth caused by the epidemic situation, China's textile industry will achieve a rapid growth, It fully shows the stable supply advantages of China's complete textile industry chain. According to the data of China Customs, the total export volume of China's textile and clothing will reach 315.46 billion US dollars in 2021, with a year-on-year increase of 8.3% and an average growth of 7.8% in two years. Among them, the export situation of clothing has obviously recovered, which plays an important role in supporting the export growth of the industry. The annual export volume reached 170.26 billion US dollars, with a year-on-year increase of 24%, and an average growth rate of 6.1% in two years, which is the best growth level since 2015; While the export amount of masks and protective clothing decreased by 48.2 billion US dollars, a year-on-year decrease of 76.1%, the textile export volume still reached 145.2 billion US dollars, although the year-on-year decrease was 5.6%, the average growth rate in two years was still 9.9%.

Textile enterprise benefit improvement stimulates investment confidence

According to the data of the National Bureau of statistics, in 2021, 34000 Textile Enterprises above Designated Size in China realized 5174.94 billion yuan of business income, a year-on-year increase of 12.3%, and a growth rate of 21.1 percentage points higher than that of 2020, with an average growth of 1.2% in two years; The total profit was 267.68 billion yuan, with a year-on-year increase of 25.4%. The growth rate was 31.8 percentage points higher than that in 2020, with an average increase of 8.3% in two years; The profit margin of operating revenue was 5.2%, 0.6% higher than that in 2020, reaching the highest level since 2018. The profits of more than 80% of the whole textile industry chain have been significantly improved, and the profits of more than half of the links have increased by more than 50% year on year. Affected by the rise of commodity prices, the chemical fiber industry at the front end of the industrial chain has improved significantly. In 2021, the total profit increased by 149.2% year-on-year, ranking the first in the whole industry chain; The average growth rate in two years reached 45.5%, significantly higher than that before the epidemic. The operating efficiency and capital turnover of textile enterprises were generally stable. The turnover rate of finished products of Enterprises above Designated Size in the whole year was 13.6 times / year, slightly slowing down by 0.7% on a year-on-year basis; The turnover rate of total assets was 1.2 times / year, 5.5% higher than that of the previous year; The proportion of three fees is 6.6%, which is 0.4% lower than that in 2020.

Driven by the recovery of demand and supported by the policy of reducing the burden, the economic benefits of textile enterprises have improved steadily.

The recovery of enterprise benefits has led to the gradual recovery of investment confidence. According to the data of the National Bureau of statistics, in 2021, China's textile industry, chemical fiber industry and clothing industry completed fixed asset investment increased by 11.9%, 31.8% and 4.1% respectively year-on-year, and the growth rate increased by 18.8%, 51.2% and 36% respectively compared with the same period of last year. Among them, the leading and backbone enterprises in the textile and chemical fiber industries actively carried out investment activities around the upgrading of technical equipment, extension of industrial chain and regional layout adjustment. The average growth rate of investment in two years was 2.1% and 3.1%, respectively. The investment scale has exceeded the level before the epidemic.

Looking forward to 2022, the economic operation of the textile industry still has the conditions and foundation for stable and better development, but the complexity and severity of the development situation can not be ignored. Sun Ruizhe believes that China's macroeconomic aggregate has broken through the 110 trillion yuan mark, and the favorable conditions for building a "double cycle" new development pattern have not changed. With the solid progress of the national "six stability" and "six guarantees" work and the release of a series of policy combinations to protect people's livelihood, promote consumption and expand domestic demand, the textile industry will be based on a strong and diversified domestic demand market, continuously consolidate the advanced manufacturing advantages, and actively grasp the new fashion opportunities such as green and low-carbon transformation, "ice snow economy" and "national tide in power", In the domestic market to obtain broad development space and rich innovation motive force.

"Although the international cooperation environment faced by the textile industry is increasingly complex, there are still new opportunities for development," Sun said Effective and high standard free trade zone network construction will provide favorable conditions for textile industry to further tap regional market potential and build transnational resource allocation system. In addition, the global epidemic situation is still evolving. Economic recovery is facing multiple pressures, such as weakening employment improvement momentum and high inflation. Monetary policy in developed economies is expected to continue to tighten, which will form a negative constraint on market consumption capacity and consumption confidence. "

"The international textile production and supply chain will gradually resume, the international procurement pattern may be adjusted, the centralized flow of export orders to China may change, and the uncertainty of export situation will be significantly increased." Sun Ruizhe also pointed out that in the complex international economic situation, although the domestic demand market is basically stable, it is also facing the test of weakening market consumption willingness and gradually passing the dividend release period of online retail channels. In addition, problems such as high price fluctuation of bulk commodities, uneven recovery degree of various links in the textile industry chain, obvious differentiation of large and medium-sized enterprises in development, etc. still need to be resolved, and enterprise market expectations and development confidence are still to be stabilized.