China'S Textile And Garment Exports Make Good Achievements

In 2020, the sudden outbreak of the new crown epidemic has had a significant impact on the economic and trade patterns of all countries in the world, disrupted the pace of China's textile and clothing production and trade, resulting in the export once falling into a trough. In the face of the outbreak, the Chinese government responded quickly, deployed effectively, and actively prevented and controlled the epidemic, thus winning the battle of epidemic prevention in the shortest time. With the strong support of the "six stabilities" and "six guarantees" put forward by the CPC Central Committee, the vitality of the domestic market has been stimulated, and the confidence of enterprises has been gradually restored. All the production enterprises and foreign trade enterprises have made joint efforts to strengthen the coordination of upstream and downstream industrial chains, ensure the smooth supply chain, open up the export channels, and smoothly ensure the adverse growth of foreign trade throughout the year. As a key export commodity, textile and clothing withstood the huge impact of the epidemic situation. Driven by anti epidemic materials such as masks, the export of textile and clothing has achieved an over expected growth in the whole year, which has become an important driving force for the growth of national trade in goods. In 2020, the total foreign trade volume of China's textiles and clothing was 319.88 billion US dollars, with a year-on-year increase of 8%, accounting for 6.9% of the total goods trade. Among them, the export was US $296.23 billion, second only to the historical peak of US $298.49 billion in 2014, with a year-on-year growth of 9.1%, accounting for 11.4% of the national export of goods, and the import of 23.65 billion US dollars, a decrease of 4.1%. The total trade surplus reached 272.58 billion US dollars, accounting for 51% of the national trade surplus of goods, with a year-on-year increase of 10.4%, and the overall export of goods trade increased by 1 percentage point.

1. In 2020, China's foreign trade in textiles and clothing presents the following characteristics:

(1) exports fell sharply in the first quarter and rebounded gradually in the second quarter.

Affected by the epidemic situation, production and logistics in various parts of the country were seriously hindered after the Spring Festival. In addition, a large number of labor force was stranded in the countryside and could not be reworked and returned to work in time. The textile and clothing production and export were seriously impacted. In the first quarter, the cumulative export was only 46.35 billion US dollars, a year-on-year decrease of 17.7%. In the second quarter, the domestic epidemic situation was effectively curbed and production basically returned to normal. However, a large-scale outbreak of foreign epidemic started. Customers in major markets began to cancel, reduce orders or request delayed delivery, which led to the re obstruction of the export link. The export of traditional bulk commodities all declined significantly. Yarn, fabric and knitwear clothing decreased by 47.6%, 38.7% and 20.8% respectively in the current quarter. But at the same time, due to the spread of foreign epidemic situation, there is a serious shortage of anti epidemic materials such as masks. The export of masks (included in Textiles), which accounted for a small share of the total, has increased dramatically, which rapidly drives the overall export of textiles to achieve 63% growth in the current quarter. From the third quarter to the fourth quarter, with the relief of foreign epidemic situation and the availability of materials, the overall export growth of textiles, including epidemic prevention materials, dropped, with an increase of 44.3% and 16.5% in the third and fourth quarters respectively. With the rising demand for clothing, home textile products and other consumer goods in traditional western festivals such as Thanksgiving, Christmas and new year's day, as well as the industrial chain and supply chain of our main competitors such as Southeast Asia and South Asia, which can not meet the needs of the external market due to the epidemic situation, part of the orders transferred and returned to China, and the export of clothing and home textile products began to rebound And home textile exports stop falling, yarn, fabric decline narrowed. Major commodity textiles have been growing for nine consecutive months since April, while clothing has been reversed since August, with growth for five consecutive months at the end of the year.

(2) all exports to key markets have increased, and the market share of our products in Europe, the United States and Japan has rebounded.

The export of textile anti epidemic materials to EU has been growing rapidly. After brexit, the trade between Britain and China has become closer.

In 2020, China's exports to 27 EU countries (excluding the UK) amounted to 53.97 billion US dollars, an increase of 34.4%. Among them, the textile export increased by 130%, mainly driven by anti epidemic materials. The export of textile anti epidemic materials (according to the 8-digit HS code) was 21.89 billion US dollars, accounting for 40.6% of the total exports to the EU, an increase of more than 8 times over the same period of the same period. Traditional bulk exports of clothing fell 3.7%.

Britain officially left Europe on January 30, 2020. With this regional uncertainty factor "landing on the ground", the trade between Britain and China has been further developed. In 2020, the import and export of all goods trade between China and Britain will increase by 7% year-on-year, of which China's export will increase by 16.3%. In the field of textile and clothing, China's exports to the UK amounted to US $12.85 billion, an increase of 83.3%. The high growth rate was mainly driven by anti epidemic materials. However, the growth rate of traditional commodity knitwear clothing was also as high as 31%. Britain's position in the single export market of China's knitwear and woven garments also surpassed that of China's Hong Kong Special Administrative Region and Germany, climbing to the third place.

Exports to the United States fell first and then rose, and epidemic prevention materials became the biggest bright spot.

The United States is the country with the most serious epidemic situation in the world and the single market with the largest export of epidemic prevention materials in China. In 2020, China's textile and clothing exports to the United States amounted to 55.38 billion US dollars, an increase of 22.6%. Among them, the export of textile anti epidemic materials (according to the 8-digit HS code) was US $21.59 billion, accounting for 39% of the total export to the United States, with a year-on-year increase of more than four times.

In 2020, the United States can be said to be in constant turmoil, frequent emergencies, but the fundamentals of consumer demand is still stable, China's exports to the United States show the characteristics of first fall and then rise: in the first quarter, the export volume dropped by nearly 30%, then rose quarter by quarter, the growth rate in the second and third quarters reached more than 30%, and rose to 38% of the highest point in the fourth quarter.

The export of traditional bulk commodities to the United States decreased significantly: yarn and fabric decreased by 21.6% and 16%, knitwear clothing decreased by 16.5%, and only household textiles increased by 3.5%.

ASEAN has become the only region where China's garment exports have grown, and there is still a huge space for bilateral cooperation after the epidemic.

Under the promotion of China ASEAN bilateral trade agreement, the economic and trade cooperation between China and ASEAN has developed rapidly. In 2019, ASEAN surpassed the United States to become the second largest trading partner of China's textile and garment industry. In 2020, the trade volume of China ASEAN bilateral textile and clothing fell behind that of the United States again due to the reduction of trade exchanges and the deviation of epidemic prevention material data due to the impact of the epidemic situation, with a cumulative increase of 0.65% to 46.63 billion US dollars. China's exports to ASEAN reached 39.8 billion US dollars, an increase of 1.9%. Among them, textile exports decreased by 2.2% and clothing increased by 14.1%. China is the only region in China's key markets to realize the growth of clothing export. The export of bulk commodity yarn and fabric decreased by 24.6% and 12.1% respectively, and the growth of needle woven clothing was 19.2%.

As China's main competitor in the world, ASEAN has long regarded the textile and garment industry as its key development industry for a long time. It has continuously deepened its efforts in attracting investment and strengthening infrastructure construction, and has further extended its tentacles to the upper reaches of the industrial chain and into the fields of yarn and fabric, so as to get rid of its dependence on China's raw materials. ASEAN's foreign trade volume of textile and clothing is increasing year by year, and the gap with China is rapidly narrowing. In 2017, its export volume is still less than a quarter of China's export, and in 2019, it has rapidly increased to nearly 30% of China's export volume. In 2020, the export of ASEAN will also be affected by the epidemic situation, and the export will be greatly reduced. However, the development trend will continue to be better after the epidemic. There is still huge trade potential and business opportunities between China and ASEAN.

Japan's share in China's export market rose slightly, and the export price of clothing fell.

During the five years from 2015 to 2019, Japan's share of China's export market is in a sustained and slow decline state, with a decline of only 0.3 percentage points in the five years, ranking fourth after the European Union, the United States and ASEAN, and the second in the single market. In 2020, China's total export to Japan was 21.93 billion US dollars, the market share rose slightly to 7.4%, and the export volume increased by 10.3%. Among them, the textile export was 7.87 billion US dollars, which increased by 74.5% driven by epidemic prevention materials, and clothing was 14.06 billion US dollars, a decrease of 8.5%.

Exports to emerging markets and countries along the belt and road have declined slightly.

In 2020, China's exports to Africa, Latin America and other emerging markets, as well as the countries along the belt and road, will all decline, but the decline rates are not large, respectively 1.4%, 6.5% and 5.7%. The future performance of these markets is still worth looking forward to.

The market share of Chinese products in Europe, the United States and Japan has all rebounded.

Under the epidemic situation, industrial transfer has increasingly become the focus of the industry: from the import statistics of major markets, the share of Chinese products in the key markets of Europe, the United States and Japan in 2020 has experienced a process from decline to growth. At the beginning of the outbreak, China's share of products decreased significantly. In the first quarter, China's share in the EU, the United States and Japan decreased by 1.6, 10 and 5.4 percentage points respectively compared with that at the end of 2019, and most of them were transferred to Southeast Asia and South Asia. However, with the gradual recovery of China's industrial production and trade order, as well as the global spread of the epidemic, ASEAN and other regions that have formed competitive relations with China are deeply involved. When China resumed production, these regions just entered a high incidence period, and they also suffered from the impact of shutdown and order decline. At the end of the second quarter, China's market share has rebounded significantly, and this momentum will continue to the end of the year.

According to the statistics of Eurostat, in November 2020, the EU imported 54.58 billion US dollars from China, an increase of 52.3%. The share of Chinese products rose by 12 percentage points from 30.8% in 2019 to 42.9%.

According to the statistics of the U.S. Department of Commerce, in 2020, the United States imports 47.36 billion US dollars from China, an increase of 17.9%. The market share of Chinese products in the United States is 38.6%, which is nearly 6% larger than that of last year, mainly driven by textiles.

According to the statistics of Japan's Ministry of finance, in 2020, Japan's import from China will reach US $22.45 billion, and its share will rise to 58.76% from 55.3% in 2019, mainly driven by textiles, and clothing is still in a downward trend.

(3) epidemic prevention materials have become the driving force for growth, and the export of traditional bulk commodities has declined.

In 2020, the outbreak and continuous spread of global epidemic situation make our anti epidemic materials become the driving force of export growth. In the whole year, according to the statistics of HS8 bit code, the amount of masks (with slightly larger caliber) was nearly 53.85 billion US dollars, with a year-on-year increase of 71%. Protective clothing was $12.7 billion, an increase of 16.8%. In addition, medical surgical caps and medical gloves accounted for 25.6% of the total export, forming a strong positive impetus to the annual export growth.

Under the impact of the epidemic, the exports of traditional bulk commodities all declined. The export volume of yarn, fabric, home textiles and knitwear decreased by 21.5%, 17.7%, 3.6% and 8.7% respectively. Among them, the export quantity and unit price of yarn and fabric decrease faster, while the speed of needle woven clothing decreases slightly.

Driven by the epidemic situation, significant changes have taken place in the structure of textile and clothing export in 2020. The huge growth of mask export has driven the textile export to achieve a high-speed growth of 28.9%. The proportion of textile in the overall export of textile and clothing rapidly expanded to 52.3%, exceeding that of clothing for the first time (47.7%).

Even if there is no epidemic situation, the export structure of textile and clothing is constantly optimized and adjusted. From the perspective of major categories of commodities, yarn and fabric as the most important textile products, the total export proportion decreased by 6.8% compared with that in 2019, while the total export share of knitwear clothing, as the most important clothing product, decreased by 7.6% compared with that in 2019. It shows that even though the exports of textiles and clothing conventional products all decline, the export status of textiles is still rising and its share is expanding.

(4) the export share of the eastern provinces decreased slightly, and the industrial undertaking effect of the central region further showed.

In 2020, the top five regions of textile and clothing export volume are Zhejiang, Guangdong, Jiangsu, Shandong and Fujian. Among them, Guangdong Province surpassed Jiangsu province again and became the second largest export province. The total export of the five provinces accounted for 73.7% of the country's total, a decrease of 2.3 percentage points compared with last year. The industrial undertaking effect of the central region was further revealed. In that year, the total export of the central region was 23.82 billion US dollars, accounting for 8% of the total export of the whole country, 1.4% higher than that of last year. Among them, Hubei, Anhui, Jiangxi and other places have achieved rapid growth. In particular, Hubei withstood the enormous pressure brought about by the epidemic. In the case of a 30% drop in exports in the first quarter, it started to make efforts since the second quarter, with an annual export growth rate of 104%.

The export growth of the whole year mainly depended on the eastern region (8.4%) and the central region, while the export of the western region and the three northeast provinces decreased by 2% and 5.4% respectively. Although the growth has not been realized, in the special period, the western region and the three northeast provinces have not experienced significant fluctuations, and the decline rate is stable in a small range, which also shows that China's regional coordinated development has made progress and the regional gap has gradually narrowed.

(5) the import of textiles and clothing was restrained first and then increased, and the import volume of intermediate goods and final consumer goods did not resume growth.

Under the influence of factors such as production obstruction, demand decline and Sino US trade friction caused by the epidemic, China's textile and clothing import could not resume growth in 2020, with a total import of 23.67 billion US dollars, a decrease of 4.1%. The decline was mainly concentrated in the first half of the year. In the first half of the year, only in February and March, due to the serious domestic epidemic situation, the sharp increase of donations from overseas led to the continuous growth of imports. In the rest of the month, there was a double-digit decline, and the cumulative import fell by 9.4% in the first half of the year. In the second half of the year, domestic production gradually recovered, orders increased, the demand for intermediate goods rebounded, and the RMB exchange rate changed from devaluation to continuous appreciation, which was conducive to imports, making imports increase for four consecutive months in 82, and the cumulative import growth in the second half of the year was 4.4%.

From the perspective of product structure, the decline of import in the whole year was mainly affected by textiles. Textile imports totaled 14.17 billion US dollars, a decrease of 9.8%, and clothing imports of 9.495 billion US dollars, an increase of 6.2%.

According to the use of bulk commodities, the import volume and price of intermediate yarn and fabric decreased by 4.2% and 11.3% respectively, while that of fabric decreased by 28.3% and 0.4%. The import volume of final consumer goods knitwear increased by 0.9% depending on the increase of unit price, but the import volume decreased by 12.2%. The import volume of household textiles decreased by 18.4%.

(6) the import volume of cotton increased and the price fell, and the United States regained its position as the largest source country of cotton imports.

In 2020, China's cotton imports totaled 2.159 million tons, an increase of 16.6%, and the growth rate resumed for the fourth consecutive year. According to the monthly data of the whole year, the import volume showed an obvious "V" shape reversal. Since March, due to the decline of downstream demand, the import decreased rapidly, and fell to the bottom in May, and only 70000 tons of cotton were imported in that month. After that, with the recovery of demand, imports gradually recovered and the import volume increased. In December, the import volume reached 355000 tons, which reached a new high in a single month in recent five years. The average import price was 1651.4 US dollars / ton, the lowest in nearly 10 years.

Driven by the favorable outcome of the agreement signed by China and the United States at the beginning of the year, cotton imports from the United States rebounded significantly, with an annual import of 976700 tons, an increase of 171% over the same period of last year, making the United States regain its position as the largest source country of China's cotton imports. Brazil and India respectively imported 618000 tons and 253000 tons.

At the end of the year, domestic cotton prices continued to rise, reaching an annual high.

According to the monthly report of China Cotton Association, in 2020, the domestic cotton market will be impacted by the new crown epidemic, cotton production will remain stable, the rotation of reserved cotton will be orderly carried out, the import volume will continue to increase, the market supply will be sufficient, the textile demand will gradually recover, the cotton price will fluctuate and the price difference between domestic and foreign cotton will increase. According to the Statistics Bureau, the total cotton output in 2020 will be 5.91 million tons, with a year-on-year increase of 0.4%. At the end of the year, the production and sales of textile enterprises are booming, the production of gauze is on the rise, and the industry trend is better.

In December, with the improvement of the domestic textile market and the increase of orders in spring and summer, the enthusiasm of enterprises in purchasing raw materials was warming up, which boosted the continuous rise of domestic cotton price; the international cotton price rose in shock, and the increase was lower than that in China. At the end of December, China's cotton price index (ccindex3128b) was 14963 yuan / ton, up 1594 yuan year-on-year; China's import cotton price index FC index m was 83.12 cents / pound, up 6.17 cents year-on-year. The 1% tariff was reduced to 13894 yuan / ton, which was lower than 1044 yuan / ton of domestic spot goods in the same period, and the price difference between domestic and foreign cotton was reduced by 155 yuan compared with the end of last month.

Second, the short-term and long-term effects of the epidemic on China's textile and garment trade.

(1) in the short term, the surge effect will gradually subside, and the industrial transfer will continue with the original speed and path.

The epidemic is a sudden and accidental event, which will form a stress effect on the trend of Global trade in a short period of time. Orders will be quickly concentrated in a small number of countries and regions with complete industrial chain and capacity recovery in the first time. In the following six months, Indian orders once returned to China; the purchase intention of the market also transferred back to China again, making China's share in the main markets rapidly rebound.

At the beginning of 2021, the global epidemic situation will continue to rage, and the new coronavirus will still coexist with human beings for a long time. However, with a large number of vaccination and vaccination, the epidemic situation will pass one day. It is believed that the global business order, trade and investment activities will return to normal, and the trade pattern of textile and clothing will gradually return to the state before the epidemic. One of the main trends is that the medium and low-end textile and garment industries will continue to transfer from China, and the speed and scale of the transfer will be further accelerated and expanded. The main undertaker is still Southeast Asia, South Asia, and Africa and other emerging development areas. From the data, the share of Chinese products in the main markets will continue the downward trend before the epidemic.

(2) in the long run, the epidemic has promoted the diversification of the international market. Developed economies will further reduce their dependence on "made in China", and China's competitive and cooperative relationship with developing countries and regions will be more stable.

Instead of creating a global consensus on cooperation, the epidemic has exacerbated mistrust and decoupling among countries. For the sake of economic and industrial security, some developed countries, such as the United States and Japan, continue to introduce policies to attract industrial backflow, promote local supply or tend to "neighboring procurement". The regionalization of industrial chain will become the main trend in the post epidemic era. The most prominent is the United States. In the Obama era, "buy American goods" was proposed, and a number of preferential measures such as manufacturing promotion act and preferential tax policies were introduced to boost the American manufacturing industry. After Trump came to power, he promoted unilateralism in the world, strengthened the priority of American interests, and attracted the investment of manufacturing industry to return to China.

Although the huge and complex textile and clothing industry chain can not be smoothly returned to the local area overnight, it will promote the United States and Japan and other countries to accelerate the distribution of procurement to Southeast Asia or surrounding areas from the perspective of reducing dependence on China. According to the data released by the United States, in the five years from 2015 to 2019, the share of US textile and clothing imports from China has decreased by 5.2 percentage points. The share lost by China is mainly divided by Vietnam, India, Bangladesh, Mexico, Honduras and other central and North American countries. In the past five years, China's 9.2% share in the Japanese market was almost completely divided up by Southeast Asia and Bangladesh. In the future, as the epidemic situation subsides, the supply conditions in these areas will be improved. In order to recover the losses, it will intensify the competition with China for the market, and the external environment China will face will be more complex and severe.

At the same time of competition, China has always adhered to the purpose of expanding reform and opening up, which will further lead China to deepen cooperation with ASEAN and other countries in industrial chain construction and intermediate trade. In 2020, the regional free trade arrangement has made great achievements: on November 15, the regional comprehensive economic partnership agreement (RCEP) was officially signed, with 15 countries including China, ten ASEAN countries, Japan, South Korea, Australia and New Zealand, covering 30% of the world's GDP, population and exports. It is now the largest free trade area in the world. In 2020, China's textile and garment exports to RCEP countries totaled 78.06 billion US dollars, accounting for 26.4% of the total exports. For China's textile and clothing industry, the establishment of free trade agreement with Japan, the second largest single export market for the first time, and the rules of origin accumulation in the agreement are the most "practical". After the agreement comes into effect, it will have a positive and far-reaching impact on China's textile and clothing industry to expand trade scale and deepen industrial chain cooperation. In addition, China has always maintained friendly and cooperative relations with countries along the belt and road. Bilateral trade exchanges have been strengthened, and the volume of textile and clothing trade has continued to grow steadily. Many of these countries and regions have received material and medical assistance from China during the outbreak, and their friendship with China has been strengthened for a long time. After the outbreak, they will still maintain close contacts with China, and bilateral trade will rapidly resume and further expand.

(3) the uncertainty of trade relations with the United States has increased.

At the beginning of the year, the U.S. Treasury Department removed China from the list of exchange rate manipulators. On January 15, China and the United States signed the first stage of economic and trade agreement. The US side reduced the tariff of products under the list 4a of US $300 billion tax increase from 15% to 7.5%. China has also lowered tariffs on some imported goods from the United States. Just after the two sides released their goodwill, the US government signed the US Mexico Canada trade agreement on January 29, and issued a "big move" against China's textile industry. In July, it issued the "Xinjiang supply chain business consultation announcement", which intervened in China's internal affairs by various political and economic means, such as "Xinjiang related bill", "entity list" and "withholding order", and suppressed and disrupted Xinjiang's normal economic activities The normal economic order and trade between the two countries caused serious damage.

In 2020, due to the severe epidemic situation, US imports from China will increase significantly. With the Democratic Party coming to power in 2021, the US policy toward China will be eased, and the trend of unilateralism and isolationism will change. However, the tone of the United States to contain China for a long time will not change, and the policy of suppressing China's key scientific and technological products will not change. Although textile and clothing are not the key products of the United States to curb, as China's bulk exports to the United States and the main commodity for China to achieve trade surplus, the United States is bound to take various conventional or unconventional means to restrict and block China's textile and clothing products, such as signing the US Mexico Canada agreement and reintroducing the cptpp, so as to achieve the purpose of isolating China. The uncertainty of bilateral economic and trade relations will be further enhanced in 2021 and after the epidemic, which will pose more challenges to the normal trade of textile and clothing between China and the United States.

Third, sum up the achievements, face up to the gap, and stride into a new journey of development in the 14th five year plan.

(1) the dominant position of China's textile and garment industry has been further highlighted under the great test of epidemic situation.

After 30 years of development, China's textile and clothing industry has formed a vertical and complete industrial chain and supply chain foundation, becoming the world's largest textile and clothing industry chain center and supply chain hub, with a huge domestic consumer market. Today, China's total fiber processing volume exceeds 50% of the world's share, chemical fiber production accounts for about 70%, textile and clothing export accounts for 34% of the world, annual yarn output exceeds 26 million tons, cloth production is nearly 40 billion meters, the retail sales of clothing consumer goods of enterprises is more than 800 billion yuan, and the retail sales of online wear goods are increasing year by year. In the face of the outbreak, China's industrial chain supply chain withstood the impact. Domestic enterprises quickly returned to work and production, adjusted production capacity and switched to production of masks and protective clothing, which made great contributions to stabilizing global consumption and fighting against the epidemic, and demonstrated China's strong institutional advantages and ability to resolve sudden crises. According to the data released by China Customs, in December 2020, China exported 224.2 billion masks to the world, equivalent to providing nearly 40 masks for everyone in the world outside China, 2.31 billion pieces of protective clothing and 2.92 billion pairs of surgical gloves. In the second half of 2020, the epidemic is rampant around the world, which once led to the inability of Southeast Asia and South Asia to undertake orders, resulting in some orders returning to China, filling the supply gap of some countries and regions. It is further proved that China has a good industrial foundation and stable industrial structure, strong industrial toughness and flexibility, and enterprises are responsible and able to bear the responsibility. These advantages can not be replaced and surpassed in the short term, and China's textile and garment industry will still occupy the leading position in the world for a long time in the future.

(2) face up to the weakness of the industry and try to narrow the gap with developed countries.

1. China's textile and clothing output and export scale is huge, but the profit margin is generally not high, and the overall profit level has continued to decline in recent years. At present, only a small number of large and super large enterprises with brand and independent innovation ability can achieve high profit return. The profit margin of most small and medium-sized textile and garment enterprises is still low, and the average net profit margin of export enterprises is only 3-8%. According to the data released by the Statistics Bureau, from 2016 to 2019, the total profits of Industrial Enterprises above Designated Size in the textile industry decreased year by year, by 50% in four years, and by 38.6% in the clothing industry. In 2020, driven by epidemic prevention materials, the textile industry will achieve a total profit of 110.540 billion yuan, recovering a growth rate of 7.9%; the total profit of the clothing industry will reach 64.04 billion yuan, a decrease of 21.3%.

2. Most enterprises survive with low profit, and their anti risk ability needs to be improved. Due to the low profit margin, the industry is more sensitive to the changes of external factors such as exchange rate fluctuations. In 2020, the exchange rate of US dollar against RMB will fluctuate like a roller coaster, and the RMB exchange rate will decline first and then rise. From January to may, affected by the impact of the epidemic, the RMB exchange rate fluctuated and depreciated. On May 29, it once devalued to 7.1316, falling below the low point since March 2008. Since then, China's new crown pneumonia epidemic has been fully controlled, the economy has recovered in an all-round way, and the United States has bailed out the market and released liquidity, leading to the rise of RMB. On December 31, 2020, the middle price of US dollar against RMB was 6.5249. In seven months, the appreciation rate was as high as 8.5%, which was beyond the expectation. RMB rose by 6.47% against the US dollar in one year in the whole year. Combined with the shortage of container supply and rising shipping costs in the second half of the year, the profits of foreign trade enterprises, especially small and medium-sized enterprises, have bottomed out or even made no profit. At the beginning of 2021, the US dollar / RMB central price fell below 6.5 again. In addition, the United States plans to take a $1.9 trillion liquidity relief policy, so the RMB appreciation trend will continue. The profits of export enterprises will be further squeezed.

3. The ecology of China's textile and garment industry still needs to be optimized, and there is still a significant gap between China and developed countries in brand building, energy conservation and environmental protection, front-end R & D and finished product design, value chain control and export pricing power. We need to further promote the high-quality development of the whole industry, enhance the soft power of the industry, and become a real manufacturing power.

(3) the 13th five year plan has come to a successful conclusion, and we look forward to further achievements in the 14th five year plan.

During the 13th Five Year Plan period, China's textile and clothing foreign trade entered a stable development stage, with total trade, export and import all growing, with an average annual growth rate of 2.5%, 2.7% and 0.3% respectively. In 2020, the production and export of textile and clothing will grow against the trend under the epidemic situation and achieve a successful end. This is a demonstration of the scale strength and strong toughness of China's textile and garment industry, as well as the embodiment of kinetic energy conversion ability, and also a comprehensive embodiment of the achievements in promoting industrial upgrading and improving development quality over the years.

In 2021, China's textile and clothing industry is facing new requirements of the new era. Under the escort of national support policies, China's textile and garment industry should continue to deepen adjustment, speed up scientific and technological innovation, research and development and brand building, and promote industrial upgrading. While consolidating the original market, foreign trade exports should actively explore emerging markets and strengthen industrial cooperation with ASEAN countries In the complex and severe international economic situation, pilot domestic sales and build a new development pattern with domestic circulation as the main body and domestic and international dual circulation promoting each other.

Long wind and waves will sometimes, straight cloud sail Jicang sea. We believe that China's textile and garment industry will be able to achieve steady and long-term development in the period of the "14th five year plan" and in the future.