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In 2021, in the face of the difficult test of the century-old situation and the century epidemic, my country's textile industry fully implemented the decisions and deployments of the Party Central Committee and the State Council, adhered to the general tone of work of seeking progress while maintaining stability, continued to deepen transformation and upgrading, and worked hard to resolve the spread of the epidemic and raw material prices. The impact of risks such as rising and poor international logistics, the main operating indicators rebounded on the basis of the lower base of the previous year, and the export scale hit the highest level. In the face of the complex external situation, the textile industry has shown strong development resilience and vitality, and the stable operation advantages of a complete and high-quality modern industrial system have become more consolidated, basically achieving a good start to the 14th Five-Year Plan, and making positive contributions to the steady growth of the national economy, the protection of people's livelihood, the promotion of employment and the prevention of risks. In 2022, the external development environment will become more complex and severe. The textile industry still needs to actively respond to and resolve various risks and challenges, strive to maintain the basic stability of economic operation, and achieve steady improvement in the quality of development, in order to complete the stabilization of the macroeconomic market, continue to improve people's livelihood, and maintain Make new contributions to the development goal of overall social stability.

Industry boom to maintain the expansion trend

The growth rate of production is stable and reinforced.

In 2021, the business climate of the textile industry will continue to be in the expansion range. According to the survey data of the China Textile Industry Federation, in the four quarters of 2021, the textile industry climate index continued to be in the expansion range of more than 50, with the highest value being 65.4 in the second quarter and the lowest being 57.1 in the first quarter. In the fourth quarter, driven by factors such as the continued recovery of the consumer market and the easing of the impact of power and production restrictions, the prosperity index of the textile industry rose from 58.7 in the third quarter to 62.3, the highest level since the same period in 2018, indicating that with the prevention and control of the epidemic and the recovery of production and marketing stability, the overall improvement of business confidence and the further consolidation of the foundation for the economic recovery of the industry.

The capacity utilization rate of the textile industry remained good, and the production growth rate was steadily strengthened. According to the National Bureau of Statistics, in 2021, the capacity utilization rates of the textile and chemical fiber industries were 79.5 and 84.5, respectively, but 6.4 and 4 percentage points higher than in 2020. In 2021, the industrial value added of enterprises above the scale of the textile industry increased by 4.4 percent year-on-year, and the growth rate rebounded by 7 percentage points from 2020, with 2019 as the base period (the same below), with an average two-year growth of 0.8 percent, and the scale of industry production exceeding the pre-epidemic level. Production in over 60% of the industrial chain has achieved steady growth, and chemical fiber, industrial use, home textile, textile machinery and other industries have achieved positive growth on average in two years.

Domestic demand market continues to recover

Total exports hit record high

In 2021, the sustained recovery and development of China's national economy led to the steady release of consumption potential, the textile and clothing domestic demand market to overcome the epidemic spread, extreme weather and other short-term factors, in the country to protect people's livelihood, promote consumption of good policy environment and all kinds of holiday consumption driven, showing a sustained recovery trend. According to the data of the National Bureau of statistics, in 2021, the retail sales of clothing, shoes, hats and knitting textiles of units above the national quota increased by 12.7 year-on-year, and the growth rate was 19.3 percentage points higher than that in 2020, with an average growth rate of 2.6 percent in two years. Online consumption still played a strong role in promoting the domestic demand market. The retail sales of online wear goods nationwide increased by 8.3 percent year-on-year, 2.5 percentage-year, with an average growth rate of 7%.

In 2021, affected by factors such as the gradual recovery of the world economy driving the market recovery and the return of export orders driving procurement demand, my country's textile industry's exports achieved rapid growth, the growth rate significantly exceeded the pre-epidemic level, and the total export volume hit a record high. Under the special conditions of poor flow of people, it fully demonstrated the stable supply advantages of my country's complete textile industry chain. China's customs data show that in 2021, China's total exports of textiles and clothing reached 315.46 billion billion US dollars, an increase of 8.3 percent over the same period last year, with an average growth of 7.8 percent in two years. Among them, the export situation of clothing has obviously recovered, which plays a prominent role in supporting the export growth of the industry. The annual export volume reached 170.26 billion US dollars, up 24% year-on-year, with an average growth rate of 6.1 in two years, which is the best growth level since 2015. In the case of the export amount of masks and protective clothing decreased by 48.2 billion US dollars and 76.1 year-on-year, the export volume of textiles still reached 145.2 billion US dollars, although it decreased by 5.6, but the two-year average growth rate is still 9.9 per cent.

Significant improvement in business efficiency

Investment confidence has been restored.

Driven by the demand recovery and the support of the policy of reducing the burden, the economic benefits of textile enterprises have improved steadily. According to data from the National Bureau of Statistics, in 2021, 34000 textile enterprises above designated size nationwide achieved operating income of 5174.94 billion billion yuan, a year-on-year increase of 12.3 percent, and the growth rate was 21.1 percentage points higher than that in 2020, with an average growth of 1.2 percent in two years; the total profit was 267.68 billion billion yuan, with a year-on-year growth of 25.4 percent, and the growth rate was 31.8 percentage points higher than that in 2020, with an average growth of 8.3 in two years; the operating income margin of 5.2 percent, 0.6 percentage points higher than in 2020, reaching the highest level since 2018. The benefits of more than 80% of the links in the whole textile industry chain have improved significantly, and the profits of more than half of the links have increased by more than 50% year-on-year. Affected by the rise in commodity prices, the front-end of the industrial chain of the chemical fiber industry efficiency improvement is particularly prominent, 2021 total profit growth of 149.2 percent year-on-year, the growth rate of the first in the whole industry chain; two-year average growth rate of 45.5 percent, significantly higher than the pre-epidemic level. The operating efficiency and capital turnover of textile enterprises were generally stable, with the turnover rate of finished products of enterprises above designated size for the whole year being 13.6 times/year, a slight slowdown of 0.7 percent over the same period last year; the turnover rate of total assets was 1.2 times/year, an acceleration of 5.5 percent over the same period last year; and the ratio of three fees was 6.6 percent, down 0.4 percentage points from 2020.

The repair of enterprise efficiency led to the gradual recovery of investment confidence. According to the National Bureau of Statistics, in 2021, the completion of fixed asset investment in China's textile, chemical fiber and garment industries increased by 11.9, 31.8 and 4.1 percent year-on-year, respectively, and the growth rate rebounded by 18.8, 51.2 and 36 percentage points respectively from the same period last year. Among them, the textile and chemical fiber industry leading backbone enterprises actively around the upgrading of technology and equipment, extension of the industrial chain and regional layout adjustment to actively carry out investment activities, the two-year average growth rate of investment was 2.1 percent and 3.1 percent, respectively, the scale of investment has exceeded the pre-epidemic level.

development situation is complicated

The foundation for stability and improvement still exists.

Looking forward to 2022, the economic operation of the textile industry still has the conditions and foundation for stability and improvement, but the complexity and severity of the development situation still cannot be ignored.

On the one hand, with the increase in vaccination penetration and the advent of specific drugs, the new coronary pneumonia epidemic is expected to be more effectively controlled, and the world economy is also expected to maintain a gradual improvement on the recovery track, providing impetus for the improvement of market demand in the textile industry. China's macroeconomic aggregate has broken through the 110 trillion yuan mark, and the long-term positive fundamentals and favorable conditions for building a "double cycle" new development pattern have not changed. With the solid progress of the country's "six stability" and "six protection" work and the release of a series of policy combinations to protect people's livelihood, promote consumption and expand domestic demand, the textile industry will be based on a strong and diversified domestic demand market and continue to consolidate advanced manufacturing advantages, actively grasp the new fashion opportunities such as green and low-carbon transformation, "ice and snow economy" and "national tide in power", so as to obtain broad development space and rich innovation source power in the domestic demand market. In addition, although the international cooperation environment facing the textile industry is becoming more and more complex, there is still no lack of new development opportunities. The entry into force of the Regional Comprehensive Economic Partnership Agreement (RCEP) and the continuous promotion of the network construction of high-standard free trade zones will provide favorable conditions for the textile industry to further tap the regional market potential and build a transnational resource allocation system.

On the other hand, however, the global epidemic is still evolving, the economic recovery is facing multiple pressures such as weakening employment improvement momentum and high inflation, and the expected continued tightening of monetary policy in developed economies will negatively constrain market spending power and consumer confidence. The international textile production supply chain is gradually restored, the international procurement pattern may be adjusted, the situation of centralized flow of export orders to China may be changed, and the uncertainty of the export situation will be significantly improved. In the complex international economic situation, although the fundamentals of my country's domestic demand market are stable, it is also facing tests such as the weakening of market consumption willingness and the gradual passage of online retail channels through the dividend release period. In addition, problems such as high fluctuations in commodity prices, uneven recovery of various links in the textile industry chain, and obvious differentiation in the development of large and medium-sized enterprises still need to be resolved, and corporate market expectations and development confidence still need to be stabilized.

The textile industry will continue to actively implement the decision-making and deployment of the Party Central Committee and the State Council. In accordance with the requirements of the Central Economic Work Conference, the textile industry will adhere to the general tone of "stabilizing the word and seeking progress while maintaining stability", fully demonstrate the development resilience accumulated through years of in-depth adjustment and transformation, and strive to release high-quality development potential, Continue to play a positive role in ensuring production supply, stimulating domestic demand vitality, improving employment and income, efforts should be made to consolidate the stable and good foundation of economic development, maintain economic operation in a reasonable area, show greater achievements in integrating into the "double cycle" new development pattern and promoting modernization, and greet the victory of the 20th National Congress of the Communist Party of China with practical actions!

(Source: China Textile Industry Economic Research Institute)