China's textile and apparel market relies too much on exports. According to incomplete statistics. Chinese textile and apparel products exports exceeded US$270 billion in 2018.while domestic textile and apparel products retailed at around US$200 billion. The United States is China's largest exporter of textile and apparel products. The United States imposes tariffs on textile and apparel products.which will directly increase the export cost of China's textile and apparel products and weaken the price competitiveness of China's textile and apparel products. In recent years. the textile and garment industry in Southeast Asia. which is dominated by Vietnam. has developed rapidly.
The escalation of the China-US trade war has also directly accelerated the depreciation of the Renminbi. Since the expiration of the tax increase in April 2019.the RMB exchange rate against the US dollar has depreciated from 6.7 to around 6.9. depreciating around 3%. Since the beginning of the Sino-US trade war in March 2018.the exchange rate of the RMB against the US dollar has depreciated from 6.3 to around 6.9.depreciating by about 9.5%. Although the depreciation of the RMB temporarily favors the export of China's textile and apparel products.the country's financial crisis caused by the sharp depreciation of the domestic currency such as Argentina and Turkey caused the country's financial crisis to worsen. which is more likely to lead to capital outflows.
At present, China-US trade war is entering a stalemate stage. Both China and the United States are very tough.and the trade war will be a protracted war. If the United States adds taxes to China's other 300 billion US dollars in the later period. it will affect China's textile and apparel exports to a certain extent. Haining Juncheng Textile Will develop new samples and keep to supply competitive knitted fabric.
