General

In the bleak picture of the world economy, overall overseas demand is weak. Faced with the uncertainty of the external environment, the light industry is actively exploring opportunities to stabilize foreign trade, optimize structure, promote innovation, and seek development. Recently, the China Light Industry and Crafts Import and Export Chamber of Commerce and the Fujian Provincial Department of Commerce jointly held the 2023 China Light Industry and Foreign Trade Development Annual Conference in Shishi City, Fujian Province. Representatives from the political and business sectors and industry associations jointly explore the path to promoting high-quality development of international trade in light industry in the new era.

Stabilizing and Improving Quality for Development

In the past year, the light industry and foreign trade industry have made efforts to maintain orders, production, and market, achieving a total international trade import and export volume of 1.2 trillion US dollars, a year-on-year increase of 5.4%. Among them, exports reached 959.29 billion US dollars, an increase of 5.3%; Imports reached $287.18 billion, an increase of 5.7%. While increasing in scale, there have been many new breakthroughs in the development of light industry and foreign trade.

It is understood that in 2022, the international trade market share of light industrial products such as toys, bags, and plastic products exports has reached historical highs, and the international market share of furniture exports has also rebounded. The effect of industrial agglomeration has been strengthened. The 93 national foreign trade transformation and upgrading bases in the light industry across the country fully leverage the advantages of industrial agglomeration and the role of public service platforms. With backbone enterprises as the core, they continuously improve the industrial chain and enhance the value chain, playing a leading role in digital construction and brand influence enhancement. Cross border e-commerce, market procurement, and other new formats and models have boosted the rapid development of the industry. Many industry enterprises have made significant progress in product design, brand building, digital marketing, and other aspects.

In 2023, the foreign trade situation remains complex and severe. The risk of global economic recession is still on the rise, the growth of external demand is significantly slowing down, the reconstruction of international industrial and supply chains is accelerating, and the phased challenges and challenges of foreign trade development coexist. Meanwhile, exchange rate and credit risk have risen. Some emerging market currencies have depreciated significantly and tightened foreign exchange controls. The phenomenon of overseas customers changing, refunding, and destroying orders has significantly increased, making it difficult for enterprises to ship orders, delaying payment collection, and affecting sales.

In a major change, danger and opportunity coexist. The relevant person in charge of the Foreign Trade Department of the Ministry of Commerce pointed out that although external risks and challenges continue to accumulate, China's industrial scale, supporting capacity, and industrial competitiveness advantages are obvious, the institutional advantages are prominent, the industrial foundation is stable and efficient, and the competitive advantage of enterprises is large. This year, relevant government departments will continue to make efforts in strengthening trade promotion, strengthening financial and tax support, deepening trade innovation, and stabilizing the foundation of the foreign trade industry, fully promoting the stable scale and optimized structure of foreign trade.

Wang Zhongqi, President of the Light Industry Chamber of Commerce, pointed out that stabilizing scale, optimizing structure, and maintaining basic market conditions are key tasks for foreign trade work this year. As a national organization in the light industry and foreign trade industry, the Light Industry Chamber of Commerce will focus on accelerating innovation driven, intelligent transformation, and green development. It will continue to make efforts in promoting the upgrading of traditional industries, cultivating new forms and models, promoting digital applications, integrating into the new development pattern of "dual circulation", and guiding the achievement of the "dual carbon" goals, solidly promoting the steady progress, quality improvement, and development of the light industry and foreign trade.

Cultivating internal skills to increase advantages

In the current economic situation, turning danger into opportunity requires foreign trade enterprises to wear new shoes, take new paths, and climb new heights. Zhang Yansheng, Chief Researcher of the China Center for International Economic Exchange, stated that in order to seize the opportunity of the Fourth Industrial Revolution and promote the high-quality development of the manufacturing industry through the integration of data and reality, entrepreneurs need to have a global perspective, enhance their compliance, rights protection, and coordination abilities. He called for continuous efforts to further deepen the reform of "streamlining management and serving the government", solve the difficulty and high cost of financing, and continue to promote trade facilitation, in order to continuously optimize the business environment.

Lv Mingzhang, Chief Analyst of Light Industry and Textile Services at Caitong Securities Research Institute, is generally optimistic about the international trade export opportunities of the light industry this year. Taking the main export market of Chinese light industrial products, the United States, as an example, he analyzed that from the demand side, the unemployment rate in the United States is high, and consumer demand for light industrial products such as ceramics and shoes is weakening. However, overall real estate sales in the United States are on a gentle upward trajectory, which will drive up demand for home products such as sofas and mattresses. And with the release of market demand, major retailers in the United States, such as Home Depot, Market Opener, Wal Mart, have been in a low inventory state. A new round of replenishment cycle may start, and the dawn of demand side is in sight. Looking at the profit side, the prices of raw materials such as steel have gradually fallen, and the profitability of enterprises can also be restored to a certain extent.

In an uncertain international environment, Lv Mingzhang suggested that light industry enterprises cultivate their internal skills to enhance their competitive advantage. Specifically, it is necessary to make good use of financial derivatives, actively discuss with customers the use of RMB for settlement, and effectively respond to exchange rate risks. In terms of market development, focus on the market opportunities of the "the Belt and Road" countries with high demand for light industrial products. At the same time, enterprises should closely monitor the demand dynamics of overseas markets, fully utilize the advantages of modular flexible supply chains, and quickly respond to changes in overseas market demand; Relying on the development of cross-border e-commerce, cultivating and creating independent brands to enhance product added value; Seize the opportunity of "dual carbon" and actively layout green development.

At the meeting, the Light Industry Chamber of Commerce signed strategic cooperation agreements with the Department of Commerce of Fujian Province and the People's Government of Shishi City. In the future, all parties will strengthen deep cooperation, innovate cooperation methods, expand cooperation areas, share development opportunities, and jointly create a new situation for the development of international trade in Fujian's light industry. During the annual meeting, representatives visited and inspected Shishi International Textile City and Cabin Creative Park to further understand local characteristic industries, learn advanced manufacturing experience, and seek cooperation opportunities.