After The Outbreak, At Least About 10000000000 Of The Global Textile And Garment Industry Was Gone.

Recently, an analysis report released by the United Nations Conference on Trade and development (COVID-19) on Global trade shows that the new crown virus epidemic will cause us $50 billion loss in global value chain exports, and the stagnation and shortage of Chinese manufacturing industry is the main reason. The biggest loss now is the European Union, which is US $15 billion 600 million, followed by the US $5 billion 800 million loss and Japan, which lost 5 billion 200 million US dollars.

The global value chain refers to the global cross enterprise network organization for the production, sale, recovery and processing of goods and services, which involves the whole process of procurement and transportation of raw materials, the production and distribution of semi-finished products and finished products, until the final consumption and recovery process.

This process will involve all participants and organizations such as production and sales activities and their value and profit distribution. Enterprises currently spread across the global value chain carry out various value-added activities, such as design, product development, manufacturing, marketing, delivery, consumption, after sale service, and final recycling.

In the 13 industries analysed by the report, the textile and garment industry will lose more than 1 billion 500 million dollars (about 10 billion 400 million yuan).

Specifically, the biggest impact on the industry is the European Union, with a loss of US $538 million. The manufacturing industry concentrated in Vietnam and Turkey, followed by Hongkong and Taiwan. The textile and garment industry in the United States lost 80 million dollars.

In an interview with the women's wear daily, Alessandro Nicita, an international economist at the China World Trade Center Conference on international development, said that the EU's textile and garment industry has been greatly affected because Italy, France and Spain have maintained close cooperation with EU suppliers.

He pointed out that China is an important supplier of intermediate products such as yarns, fabrics, zippers, buttons and other accessories in the textile and garment industry. According to the National Bureau of statistics, China's Manufacturing Purchasing Managers Index (PMI) fell 14.3 percentage points to 35.7% last month, the lowest since February.

Prior to interview with Liu Xuezhi, senior macroeconomic analyst at Bank of communications Financial Research Center, he said that the impact of the epidemic on China's economy even surpassed the global financial crisis in 2008. The official manufacturing PMI had a new low of 38.8% in November 2008.

"During the global financial crisis in 2008, only some export-oriented enterprises in the coastal areas were hit more seriously. The epidemic is nationally characteristic, resulting in the suspension of production, shutting down, suspension of school and the suspension of residents' lives. The impact is national and comprehensive. He said.

In China's textile and garment industry, how to promote comprehensive recovery as soon as possible is also one of the most important issues of enterprises in 2 and March.

The difficulty of resuming work is mainly due to the lack of supply chain links, or the failure to get the government's re employment permit. Moreover, workers are unable to get everything in place because of traffic control. These obstacles will cause the subsequent marketing plan to be postponed or cancelled.

According to the production cycle of garment industry, most enterprises have completed the production of spring and summer wear. In the 2 and March, the retail industry was almost stopped by the epidemic, resulting in a lot of goods being unsalable. If we can't get back to work in time, this year's domestic garment enterprises will face almost all the confusion of low income in the first half of the year and not enough sales in the second half of the year.

However, Liu Xuezhi believes that a series of policies and measures, such as tax reduction, tax reduction, financial services, rent reduction, stable job subsidies, especially supporting small and medium enterprises, will be implemented step by step in the near future. It will effectively relieve the difficulties brought by the epidemic to the production and operation of enterprises, further boost enterprise confidence and promote the rise of the purchasing managers index in March.

Zhao Qinghe, Senior Statistician of the National Bureau of Statistics Service Industry Investigation Center, also pointed out that the survey of purchasing managers showed that the recovery rate of large and medium enterprises will rise to 90.8% at the end of March, of which 94.7% of the manufacturing industry will increase by 11.9 and 9.1 percentage points respectively.