According to the China National Textile and Apparel Council, in 2019, the prosperity of China's textile industry was generally in the expansion range. The textile industry prosperity index in the fourth quarter of 2019 was 55.2, reaching the highest value of the annual prosperity. In 2019, the industry's prosperity and the start of production were basically stable, and the textile industry's prosperity was generally in an expansion range.

The external situation facing China's textile industry in 2020 will become more complex and severe. The global spread of the new crown epidemic, the complex situation of increasing global economic risk points, and domestic structural issues still exist. The new crown pneumonia epidemic has not only caused domestic economic losses to textile companies, but also caused companies to face the loss of foreign trade orders and intensified international competition.

In terms of specific industry profits, from 2016 to 2019, the overall operating income and total profits of my country's textile industrial enterprises above designated size tend to decline. In 2019, the total operating revenue and profit were 2403.81 billion yuan and 100.9 billion yuan, down 2% and 11% year-on-year;

As of January-June 2020, the total operating income and total profits of China's textile industrial enterprises above designated size were 966.94 billion yuan and 40.21 billion yuan, respectively, down 15.6% and 5.6% year-on-year. In 2020, industry profits will fall sharply.

The textile industry not only has a decline in profits, but its investment scale has also shrunk. In 2019, my country's textile industry's fixed asset investment (excluding rural households) decreased by 8.9% year-on-year, and as of January-July 2020, it fell by 17.4% year-on-year, a significant decline.

2. Analysis of the reasons for the decline in profit and investment in China's textile industry

——Reason 1: China's domestic textile and apparel market has slowed down

There are many reasons for the obvious decline in the profit and investment of my country's textile industry. One of the main reasons is the slowdown in my country's domestic textile and apparel market. According to data from the National Bureau of Statistics, in 2019, the national retail sales of clothing, shoes, hats, and knitting textiles above designated size was 1351.7 billion yuan, a year-on-year increase of 2.9%, and the growth rate was 5.1 percentage points slower than in 2018. As of January-July 2020, the retail sales of clothing, footwear, and knitting textiles of units above designated size in China were 595.9 billion yuan, a year-on-year decrease of 17.5%.

2) Reason 2: The export situation of the textile industry is severe

The obvious decline in the profitability of my country's textile industry was not only affected by the poor domestic sales of domestic textiles and clothing, but also profoundly affected by the obvious decline in textile and clothing exports. According to China Customs data, the cumulative export value of my country's textiles and clothing in 2019 was 280.7 billion U.S. dollars, down 1.5% year-on-year, and the growth rate was 5.3 percentage points lower than the previous year.

According to the latest statistics from the General Administration of Customs of China, in July 2020, my country's textile and apparel exports were US$31.294 billion, an increase of 7.79% from the previous month. Among them, the export value of textiles (including textile yarns, fabrics and products) was 15.976.9 billion US dollars, down 1.11% from the previous month; the export value of clothing (including clothing and clothing accessories) was 15.317.5 million US dollars, an increase of 18.97% from the previous month.

From January to July 2020, China’s cumulative export value of textiles and apparel was US$156.482 billion, a year-on-year increase of 5.57%, of which the cumulative export value of textiles was US$90.804 billion, a year-on-year increase of 31.25%; the cumulative export value of clothing was US$66.402 billion, a year-on-year decrease of 16.58 %.

In 2020, due to the impact of the new crown epidemic and the economic downturn of countries around the world, the internal and external situation facing my country's textile industry will become more severe. But optimistically, the country has also begun to introduce various support policies in response to the impact of the new crown pneumonia epidemic, helping textile industry enterprises to relieve operating pressure, and the textile industry will adhere to the general tone of seeking progress while maintaining stability.