Textile Industry Suffers From Global Economic Contraction

In June

In the topic, "steady growth" is probably the most concern of the public.

In the face of the slowdown of world economy, a series of factors, such as Spain and Cyprus, demand for financial assistance, the continuous decline of global stock market, and the continuous decline of international oil prices, once again show that the global economy is facing huge contraction.

As an important part of the world economy, China can not stand alone.

Shao Ning, deputy director of the SASAC, said at a recent meeting of the central enterprises' strengthening basic management work conference that after experiencing 30 years of rapid growth, the Chinese economy began to enter the tight period. The central enterprises should prepare for the winter of up to 3~5 years.

In such a big environment, what kind of dilemma will China's textile industry go through and what course to follow?

From the domestic point of view, the various production costs of enterprises show a rigid upward trend, and the pressure on them is increasing.

As the price of production factors such as labor and price of coal and electricity increases, plus the combined effects of bank interest rate increase and RMB appreciation, the pressure can be imagined.

More and more negative signals from the corporate level are constrained by export and domestic demand.

And the continuous reduction of effective orders.

There has been a downtime phenomenon in the industry, so many enterprises have adjusted their plans to prepare for the winter.

In textile industry, the shortage of funds is the most frightening thing for enterprises.

Take Zhejiang as an example, in the past, Zhejiang private enterprises, which were most resistant to risks, were also "not able to live" and went bankrupt.

Zhejiang business circles feel that many Zhejiang enterprises are not crushed by rising costs and slowing external demand this year. They are "dead" on the capital chain.

From the international market, the biggest variable comes from

。

Once the US economy has experienced a prolonged downturn, China, which is at the other end of the US consumption mode, will face the situation of shrinking external demand.

At the same time, the euro zone economy is also slowing down.

Data show that the GDP slowdown in the euro area continues.

Surveys show that the global economic turmoil has pushed the euro area into a technical recession, and GDP has declined for two consecutive quarters.

You know, the European Union is our biggest trading partner and a bigger export market than the United States.

The prospect of the euro zone recession is worrying. If the EU and the United States, the two largest external demand markets in China, are "flameout", the result will be unthinkable.

But we also see some things about China.

Favorable adjustment opportunities, such as the relative stability of cotton prices, may play a certain role in the recovery of China's textile economy; the lack of market demand will eliminate some of the backward production enterprises and accelerate the technological progress; in order to find the way out for the future, the enterprises will return to the path of innovative technology guiding the market, speed up the pace of overseas investment and open a new market...

These factors will have an underestimated impact on China's textile economy.