Apparel / Textiles & Accessories

According to a report by the Global Times citing foreign media sources on May 8, PinPoint analysts pointed out that China’s export growth is once again surprising. The main reason behind this is the recovery of US demand and the counterattack of the Indian epidemic. Due to the influx or transfer of a large number of orders to the Chinese market. Statistics show that in the first four months of this year, China’s total exports reached 6.32 trillion yuan. What's more surprising is that in the first quarter of this year, the total export value of China's textile raw materials and textile products reached 398.228 billion yuan, a year-on-year increase of 27.7%. In fact, since May last year, China’s cotton production has continued to surpass India. Even if Western countries boycott Xinjiang cotton on the pretext of "human rights issues," this did not have much impact. Instead, China’s textile raw material exports in the first quarter There is a skyrocket, which undoubtedly makes Western resistance a laughing stock.

In late March of this year, Western countries suddenly hyped up the so-called "human rights issue in Xinjiang", imposed sanctions on many Chinese individuals and entities, and "grouped" to boycott Xinjiang cotton in an attempt to interfere in China's internal affairs and undermine China's territorial integrity. In response to this, China immediately launched a strong counterattack, implementing three-fold countermeasures against the EU, the United States, Britain, and Canada. Companies such as HM, Nike, Adidas, and Uniqlo that boycott Xinjiang cotton have also encountered spontaneous resistance from Chinese consumers. Sales have begun to plummet, and search terms for "HM" on Taobao and Tmall have even been blocked.

Under the suppression of Western countries, although some key products and enterprises in Xinjiang have been sanctioned, Xinjiang's cotton exports have not decreased but increased. According to Hong Kong’s South China Morning Post, customs data showed that Xinjiang’s exports to the United States surged 113% year-on-year in the first quarter. It can be seen that the impact of Western sanctions on the Chinese raw material market is quite limited, especially after the outbreak in India, due to the impact of local raw material production capacity, many orders have been transferred to China, which has ushered in new opportunities in the Chinese raw material market.

In addition to the competitive relationship between China and India in the textile industry, in the pharmaceutical field, China and India are also the world's two largest raw material supply markets besides the United States, accounting for approximately 12% and 9% of the global share respectively. However, due to the raging epidemic in India, "blockade" measures have to be taken, which has had a certain impact on the production capacity of local pharmaceutical raw materials. Due to insufficient production capacity and other related reasons, a large number of orders may be transferred to China. In addition, China will also have the opportunity to occupy more markets in the supply of new crown vaccines. According to Xinhua News Agency, India is currently being forced to switch from a vaccination grantor to a grantee, which may cause a run on global vaccine resources.

No matter which country, the demand for medicines is rigid. India occupies an important position in the global supply of pharmaceutical raw materials. Once India is affected by the epidemic, the supply of raw materials for raw materials becomes tight, which is likely to cause the global supply of pharmaceutical raw materials to be reshaped. The production capacity of China's pharmaceutical raw materials is relatively sufficient. Once there is a problem in the Indian supply chain, China will be the country most capable of undertaking the production capacity of Indian pharmaceutical raw materials.

India and China are both populous countries, but their attitudes towards fighting the epidemic are different, leading to very different results. Because China has contained the epidemic in a short period of time, the economy has now begun to fully recover. It is one of the few countries in the world with positive GDP growth, and its development prospects in all aspects are very good. Since the first wave of the epidemic broke out, India has been passively fighting the epidemic, causing the current epidemic to go out of control again. Affected by the epidemic, various industries in India have suffered severe blows. The raging epidemic has lost many opportunities for development in India, and a large number of investors and companies have turned their attention to China. India’s export of textile raw materials has been overtaken by China. This may be just the beginning. If the epidemic cannot be controlled as soon as possible, India will be overtaken in more ways.

Analysts pointed out that the difference in anti-epidemic performance between China and India is not only due to different attitudes, but also related to the differences in the systems of the two countries. After the outbreak, China united as one, concentrated efforts to contain the epidemic within a small area, and finally ensured national security. However, India is a mess, fighting for each other. After the outbreak of the second wave of the epidemic, various regions are vying for oxygen resources, causing all sorts of chaos. This fully shows how important the superiority of the system is to a country. As long as China continues to use its institutional advantages of concentrating its efforts on major issues, whether it is the epidemic, economic problems, or Western sanctions, it can be resolved well.