Chinese textile enterprises retreat overseas in th

2022-08-24
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In the cold winter, Chinese textile enterprises retreated overseas. Recently, St Huayuan announced that it agreed to transfer all the equity of its wholly-owned subsidiary Huayuan (Mexico) Textile Industry Co., Ltd. to China Textile Machinery (Group) Co., Ltd. It is worth mentioning that Huayuan (Mexico) company has a total investment of 92.8 million US dollars and a total production scale of 100000 spindles, which was once known as "the largest overseas investment of China's textile industry". At present, due to the gradual reduction of overseas orders and the continuous rise of overseas labor costs, with the gradual reduction of sales profits, the torrent retreats bravely and expanding the domestic market seems to be the only choice for Chinese textile enterprises

the risk of setting up factories overseas increases

Huayuan announcement shows that Huayuan Canada, the holding subsidiary of Huayuan Mexico, has also entered the stage of enterprise closure, liquidation and debt repayment procedures, and the earthquake resistance is strong. As early as 2006, due to the difficulties faced by the textile printing and dyeing plants in Nigeria, the enterprise known for "going global" made a decision to close the textile department and only operate the printing and dyeing department from August of that year

in previous years, setting up factories overseas has become the second fulcrum of the development of domestic textile and clothing enterprises to a certain extent. With the increasing risk of setting up factories overseas, textile enterprises began to choose to close and transfer overseas factories under the increasingly tight monetary policy

in order to help Chinese textile enterprises successfully "go global", China Textile Industry Association has pointed out five forward routes for Chinese textile enterprises: Mongolia, North Korea, Southeast Asia, Vietnam, Thailand, Cambodia, Egypt, India, Sri Lanka, Egypt, Jordan, Morocco, and central and South America. " The incentive for Chinese textile enterprises to set up factories in these places is to avoid trade barriers and low labor costs

textile enterprises withdraw from Cambodia

on the one hand, people in the industry said that they would not "leave" textile enterprises. On the other hand, the overall environment is deteriorating, overseas orders are gradually decreasing, and overseas labor costs are rising. With the gradual reduction of sales profits, the torrent retreated and expanding the domestic market seemed to be the only choice for textile enterprises

it was learned from relevant channels that a large textile enterprise in Jiangsu, which had set up a factory in Cambodia at the beginning of this century, also showed signs of "leaving" recently. Previously, Sakura group also suspended its plan to run a cotton mill in Cambodia. Its senior management explained that the reason for stopping the Cambodian project was the poor investment environment and unstable policies in Cambodia, the lack of protection for foreign enterprises, and the high mobility of workers

"setting up production plants overseas is not a simple matter of wanting to set up. It requires enterprises to have sufficient economic strength." After inspecting the Vietnamese market for more than a year, a textile enterprise in Zhejiang resolutely decided to abandon the plan to set up factories overseas. "Overseas factory construction and operation will encounter many problems that cannot be encountered in domestic production, and once these problems are not handled well, they are likely to turn into business risks." Link: labor intensive industries such as textiles are facing unprecedented challenges

"the days when China has long relied on low factor cost advantages to participate in market competition and occupy the international market by relying on low prices may be gone forever." Recently, Fu Ziying, Vice Minister of the Ministry of Commerce, said at the "sixth annual meeting of China's import and export enterprises" that China's labor-intensive industries are facing unprecedented challenges under the circumstances of slowing external demand, rising prices of production factors such as resources and labor, and accelerating the appreciation of the RMB

Zhang Xiaoqiang, deputy director of the national development and Reform Commission, also expressed the same concern about the plight of foreign trade enterprises. He pointed out at the meeting that the growth rate of China's textile exports in the first quarter fell by 20.6 percentage points year-on-year, and the export growth rate of clothing, textiles, shoes and hats, luggage and other industries slowed down. Enterprises "don't dare to accept orders after the second quarter" ".

the data of the National Bureau of statistics also confirmed the judgment of two authorities: China's trade surplus in the first quarter fell for the first time in three years.

China's trade surplus in March was $13.407 billion, an increase of $4.852 billion from the previous month. So far, the trade surplus in the first quarter was $41.418 billion, down 10.8% from the same period last year when the project plans to build China's first 100000 ton thermoplastic composite intelligent manufacturing plant, which is also the first quarter of trade The surplus fell for the first time in nearly three years

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