Industrial Value-Added Of China’s Textile Industry Down 27.2% In First Two Months Of 2020

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According to the National Bureau of Statistics, in the first two months of 2020, China’s value-added industrial output above designated size actually decreased by 13.5% year-on-year (the growth rate hereinafter refers to price-adjusted actual growth rate).

It declined 26.63% from the previous month.

In January-February period, the manufacturing output decreased by 15.7% year-on-year.

And the textile industry’s value-added output declined by 27.2%.

In the output of main products, the output of fabric dropped by 36% year-on-year to 4.2 billion meters in January-February, while the output of chemical fibers fell by 13.6% to 7.27 million tons.

Industrial output, officially called industrial value added, is used to measure the activity of certain large enterprises with an annual turnover of at least CNY 20 million (about US$ 2.9 million).

By region, in January-February, the value-added industrial output decreased 16.9% year-on-year in eastern regions, 16.7% in the central regions, 7.6% in the western regions and 11.5% in the northeast.

By product, in the first two months, the production of 79 out of 612 kinds of products increased year-on-year.

And the sales-output ratio of industrial enterprises was 97.4%, 0.7 percentage points lower than the same period of last year.

From the perspective of the main export markets, the United States remained China’s largest export destination, with US$ 3.7 billion exports.

Affected by trade frictions, the export value fell by 9.1% compared with the same period in 2018.

And Vietnam surpassed Japan to become the second-largest export destination, the exports to Vietnam increased by 10.1% year-on-year, while China’s exports to Japan and South Korea were basically unchanged with 2018.

The exports to countries along the “Belt and Road” Initiative were becoming an important driving force for the export growth of the technical textile industry.

In 2019, the exports of China’s technical textile to the countries along the “Belt and Road” Initiative reached US$ 10.85 billion, seeing a year-on-year increase of 7.1%, of which the export volume and export volume of nonwovens increased by 16.7% and 18.9%, respectively.

2020 is the year to adopt a well-rounded approach to create a society of moderate prosperity.

But the COVID-19 pandemic at the beginning of the year threatens an economic crisis as well as a health crisis.

True, the development environment faced by China’s technical textile industry maybe even more complex than before.

But opportunities and challenges, hope and difficulty coexist at the same time.

The demand for masks, medical protective clothing, disinfectant wipes brought about by the pandemic have grown rapidly.

And the Chinese authority has introduced a series of supportive policies to help enterprises overcome the difficulties.

All these positive factors are helpful to alleviate the industry’s development pressure.

It is expected that the production and sales of China's technical textile industry will decline to a certain extent in the first half of 2020, but the situation will improve in the second half of the year, and production, sales, and exports will maintain a slight increase throughout the year.