Differentiation of Cotton Spinning and Weaving Indicators: Recovery of Operations Still Requires Strengthening of Momentum - February 2024 Monthly Analysis Report on China's Cotton Spinning and Weaving Industry

In January and February, as the macro combination policy took effect, the performance of large-scale industrial enterprises continued to improve. In these two months, the revenue of large-scale industrial enterprises showed a significant improvement, with a year-on-year increase of 4.5%, which is 3.4 percentage points higher than the annual revenue growth rate of the previous year. The recovery trend in enterprise revenue is evident, creating favorable conditions for profit growth. In January and February, the total profit of large-scale industrial enterprises nationwide increased by 10.2% year-on-year, turning from a decline of 2.3% in the previous year to positive growth. Overall, the profits of large-scale industrial enterprises grew rapidly in January and February, starting off steadily.

Focusing on the Two Sessions | National People's Congress Representative Xu Weilin: Increase investment in textile technology research and development to solve the difficulties and bottlenecks of high-quality development.

Xu Weilin, a representative of the National People's Congress and president of Wuhan Textile University, stated that during this year's Two Sessions, he is focused on improving the textile technology innovation system. He aims to increase research and efforts on major public key issues related to key basic materials in the textile industry, green and low-carbon initiatives in the textile sector, and interdisciplinary studies aimed at promoting health. He advocates for the high-quality development of the textile industry characterized by "technology, fashion, and green" principles, and supports the construction of a modern textile industrial system to contribute to building a strong textile technology nation.

Review of China's Textile and Apparel Foreign Trade Performance in 2023

Performance of China's Textile and Apparel Foreign Trade in 2023

The textile industry has received a "task list" and a "blueprint" for quality improvement and upgrading.

Recently, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Commerce, and the State Administration for Market Regulation jointly issued the "Implementation Plan for the Quality Improvement and Upgrading of the Textile Industry (2023-2025)" (hereinafter referred to as the "Implementation Plan"). The Implementation Plan sets clear development goals: by 2025, the R&D expenditure intensity of large-scale textile enterprises will reach 1.3%, and 70% of large-scale textile enterprises will basically achieve digital networking; 20 globally renowned enterprise brands and regional brands will be formed, and the fashion leadership will be further enhanced.

Global textile consumption is weak, and factors such as insufficient order continuity are limiting the rebound of cotton prices.

Data shows that recently, cotton futures prices have risen both domestically and internationally, while spot prices remain relatively stable; the decline in domestic and foreign cotton yarn prices has slowed; and domestic polyester staple fiber prices continue to fall.

The clothing industry is recovering first; how far is the textile industry behind?

Due to the de-Chinaization in Western countries such as the US and Europe, as well as the impact of overseas destocking, China's textile and apparel exports have been declining for six consecutive months since the first quarter of this year. As the industry undergoes transformation and upgrading, and with overseas destocking nearing its end, the industry's outlook has significantly improved, leading to a positive turnaround in the apparel sector's profit margins.

In August, the decline in textile and apparel exports narrowed, presenting both opportunities and challenges ahead.

In August, the economic development of our country showed signs of recovery, with the decline in foreign trade exports narrowing, which was better than expected. The export of textiles and clothing decreased by 10.2% this month, a significant narrowing of the decline by 8.1 percentage points compared to last month.

2023 Yarn Expo Autumn/Winter Yarn Exhibition

On August 30, the three-day 2023 Yarn Expo for autumn and winter successfully concluded. It was held concurrently with the Intertextile Fabric Expo, CHIC Clothing Expo, and PH Value Knitting Expo. The industry is interconnected, moving forward together, and sharing development opportunities.