First of all, textile and garment enterprises must have an overall grasp of the foreign trade export situation this year.

On January 29, the Ministry of Commerce held a press conference on business work and operations in 2020. Zhang Li, deputy director of the Foreign Trade Department of the Ministry of Commerce, said at the meeting that from recent research and analysis, the foreign trade situation in 2021 is still complex and severe, with challenges and opportunities coexisting.

Zhang Zhang said that from the perspective of challenges, there are both long-term challenges and short-term pressures. The new crown pneumonia epidemic is still spreading around the world, the world economy is in deep recession, the foundation for recovery is not yet solid, the pattern of international industrial chains and supply chains is profoundly adjusted, and uncertain and unstable factors are increasing. In the recent period, foreign trade companies have also felt a lot of pressure on shipping logistics, exchange rates, employment, and raw materials. Therefore, the difficulties that may be faced in the development of foreign trade cannot be taken lightly.

At the same time, we must also realize that with the political advantages of the party’s leadership and the institutional advantages of socialism with Chinese characteristics, the super-large-scale market and a complete industrial system, China’s comprehensive competitive advantages still exist. In the process of constructing a new development pattern, China will also further promote institutional opening up and the innovative development of foreign trade. These are the confidence and confidence in facing difficulties and doing a good job in foreign trade.

Zhang Li pointed out that China will designate 2021 as the "Foreign Trade Innovation and Development Year", and will build a new development pattern around services, go all out to stabilize the basic foreign trade and foreign investment, unswervingly promote the innovative development of trade, and focus on "consolidating" and "improving" "Do a good job of foreign trade in two aspects.

On the one hand, we will consolidate the foundation for the recovery of foreign trade, maintain policy continuity, stability and sustainability, and resolutely stabilize the fundamentals of foreign trade and foreign investment. On the other hand, to enhance the ability of foreign trade services to build a new development pattern and enhance the overall competitiveness of foreign trade. Focus on implementing three major plans:

The first is the excellent entry and exit plan. Optimize the structure of export products and improve the quality of export products. Cultivate new foreign trade business models and models such as cross-border e-commerce, market procurement, and bonded maintenance. Build a national import trade promotion innovation demonstration zone.

The second is the trade industry integration plan. A batch of foreign trade transformation and upgrading bases were newly identified. Cultivate a batch of processing trade industrial parks.

The third is the unblocked trade plan. Continue to support the transfer of exported products to domestic sales. Establish a smooth trade working mechanism with more trading partners, especially countries related to the “Belt and Road” initiative. Run the Canton Fair well and develop online exhibitions. Expand the scale of overseas warehouses. Strengthen the construction of the international business system. Continue to increase momentum for the development of my country's foreign trade.

Three things to pay attention to in 2021

For textile and apparel foreign trade companies, there are several things that require great attention in 2021.

The first is the expectation of RMB appreciation.

As China took the lead in containing the epidemic, the economy quickly recovered, and the yuan appreciated all the way. Since June 2020, the RMB exchange rate against the US dollar has risen by more than 6000 points. Looking forward to 2021, analysts believe that international capital favors RMB assets, and market forces should be in a state of promoting a strong appreciation of the RMB, and the market for RMB appreciation is likely to continue in the first half of the year.

Some large export companies have used financial instruments such as foreign exchange locks and hedging to avoid risks. Small and medium foreign trade companies lack the financial resources and professional skills to deal with frequent exchange rate fluctuations. How to deal with exchange rate fluctuations is a hurdle that small and medium-sized export textile and clothing foreign trade enterprises need to continue to face in 2021.

In response, some textile and apparel foreign trade companies have begun to try to use RMB settlement to avoid the risks caused by the fluctuation of the US dollar exchange rate. For buyers from Southeast Asian countries, Chinese export textile companies have actually begun to use RMB for settlement very early. Many foreign trade textile companies in Africa also use RMB for settlement.

The second is the export potential in the post-epidemic era to be tapped.

2020 is a special year. Affected by the epidemic, my country's textile and apparel exports have experienced large fluctuations, and the overall trend is to decline and then rise. Beginning in the third quarter of last year, many garment foreign trade factories began to recover or saturate orders, and even burst orders. So, can this export stamina be maintained and continued this year?

It is foreseeable that the direction of procurement in the international market will return to normal as the epidemic improves. Markets such as the European Union, the United States, and Japan have renewed their sights on ASEAN, South Asia, and countries and regions with geographic advantages, and the market share of Chinese products may fall. Export textile companies need to focus on changes in purchasing trends and make arrangements in advance.

In terms of export products, anti-epidemic materials will continue to be an important force driving export growth. The world has not yet emerged from the shadow of the epidemic. Although my country’s exports of defense-epidemic materials have declined during the peak period, they will still maintain the characteristics of large-scale and high growth, and they will still be the main force driving export growth.

At the same time, entering the post-epidemic era, the textile and apparel cross-border e-commerce platform will be further developed. Another expert predicts that foreign trade orders will become more fragmented, small orders will become the mainstream, and the living space of pure trade foreign trade companies will become narrower and narrower. China's foreign trade textile companies, especially B2B foreign trade companies, should adjust their product lines and reposition their customer base.

The third is the emergence of a new trend of "from outside to inside".

As early as the Sino-US trade friction began, some textile and apparel foreign trade companies consciously shifted their focus from foreign trade to domestic trade. At present, accelerating the formation of a new pattern of high-quality development centered on the large domestic cycle and mutual promotion of the domestic and international double cycles has become the theme of my country's economic and social development, and the conversion of foreign trade to domestic sales has therefore become a choice for many export companies to seek development.

Faced with the dilemma of slow recovery of the terminal consumer market, especially the poor overseas economy has led to the continuous increase in unemployment and the number of bankrupt companies in some countries. Many textile and apparel export companies in my country know that they cannot put eggs in one basket, so they are developing overseas orders. At the same time, it paid attention to the development of the inland market, actively sought high-quality benefits, shared operating risks, and achieved good economic benefits.