Operation of China’s textile industry

By+Wei+Wei

Overview of Chinas textile industry

In the first half of this year， according to the National Bureau of Statistics， Chinas textile industrial added value increased by 6.3% yearon-year， 2 percentage points lower than that of the year of 2014. In the meanwhile， Chinas fixed investment of textile industry realized 524.53 billion yuan， with the growth rate of 11.4%.

In the second quarter of 2015， the entire industrial business climate index was 60.55， which still keeps within the growth range. At the same time， eight major indicators of industrial busi- ness climate index have also increased， including production index， new order index， abroad order index， sales price index， finished goods inventory index， employment index， raw materials inventory， and purchasing price of raw materials index. Details are shown in table 1.

Industrial profits

In the year of 2015， from January to May， the main business income of Chinas textile industry totalized 2611.96 billion yuan， rising by 5.27% compared with the same period in 2014. At the same time， the total industrial profit margin was 4.97%， increased by 0.21 percentage point， while the profit margin of wool， cotton， and textile machinery industry decreased slightly from a year earlier.

In general， the profit of the industrial enterprises above a designated size has been improved significantly， at a stable growth rate. From January to May， the total profit value of the entire textile industry realized 129.81 billion yuan， rising by 9.81% year-on-year. As for the performance of specific industries， profit value of home textile and tech-textile industry kept growing， and the chemical fiber industry increased rapidly. Details are shown in table 3.

Industrial investment

Overall， the investment scale of Chinas textile industry kept increasing in the first half of 2015. From January to June， Chinas fixed investment of textile industry reached 524.53 billion yuan， with a year-on-year increase of 15.41%. The industrial investment growth rate increased 2.04 percentage points compared with the year of 2014.

At the same time， the newly started projects also saw a significant increase. In the year of 2015， from January to June， the number of newly started projects increased by 11.02% year-onyear， 11.54 percentage points higher than that of 2014， and 0.66 percentage higher than that of the first quarter in 2015.

As for the investment structure， according to the National Bureau of Statistics， both the Eastern China and Middle China increased year-on-year， while the Western China suffered a decrease. The investment growth rate of the Eastern China and Middle China rose 0.3 percentage point and 0.45 percentage point respectively， while the investment growth rate of the Western China was 2.7 percentage points lower than that of the first quarter in 2015. Details are shown in table 4.

Industrial exports

According to the General Administration of Customs， Chinas textile and apparel industrial exports saw a significant decline in the first half of this year. From January to June， the export of Chinas textile and apparel products totalized$55.65 billion and $76.20 billion respectively， decreased by 0.55% and 4.56% year-on-year. During the same period， the export price of textile and apparel products went down 1.45%， and the export amount declined 1.48%. In addition， the export amount of apparel products was $131.86 billion， down 7.07 percentage point from a year earlier.

United States， EU countries， and Japan are the top three export markets of Chinas textile and apparel products， accounting for 55.99% of the total in the first half of this year， rose 0.85 percentage point than that of the same period in 2014. However， from January to June， markets of Japan and EU countries saw an obvious decrease， their export proportion declined by 1.11% and 0.62% year-on-year respectively.

Market of United States

From January to May， the United States has imported $42.59 billion textile and apparel products globally， increased by 4.02% year-onyear， up 1.67 percentage points than that of same period last year.

Market of EU countries

From January to May， the EU countries have imported €43.83 billion textile and apparel products from all over the world， increased by 11.16% year-on-year. If in dollars， the export amount was$48.9 billion， down 9.48%.

Market of Japan

From January to May， Japan has imported 1704.96 billion yen textile and apparel products， up 5.39% year-on-year. If in dollars， however， the export amount declined by 6.66% from a year earlier.

Full-year forecast of 2015

According to the analyses above， it is expected that the main business income and profits of industrial enterprises above a designated size will reach 7050 billion yuan and 390 billion yuan， with a year-on-year rise of 5% and 9% respectively. The export amount of apparel products will keep the same at $306 billion. For abovedesignated sized enterprises， the production output of chemical fiber， fabrics， and apparel will reach 48.3 million tons， 72.4 billion meters， and 30.5 billion pieces， increasing by 10%， 3%， and 2% respectively.