The 25th Autumn Edition held a private round table meeting on 25 September 2019, which included a keynote speech and a panel discussion. Representatives of high-ranking international associations discussed the topic “Sustainability and International Capacity Cooperation in the Textile Industry”.

“At each fair we aim to curate a fringe programme that will inform, engage and connect thought leaders from around the world,” said Mr Olaf Schmidt, Vice President of Textiles & Technologies at Messe Frankfurt, who opened the meeting with a welcome speech.

Mr Xu Yingxin, Vice President of the China National Textile and Apparel Council and Chairman of CCPIT-TEX (co-organiser of the fair) delivered the keynote, titled “The Current Situation of China’s Textile Industry”. Here are the main takeaways from the keynote and the panel discussion that followed.

The world’s biggest chemical fibre producer

After decades of reform, China’s textile industry has become a key player on a global scale, being one of the country’s first markets to open up. In 2018, China’s chemical fibre production exceeded 50 million tons, making up over two thirds of global production. Textile exports from China reached 37.6% of the world’s total in 2018, a 3.5% increase from the previous year, while apparel exports accounted for 31.3% of the world’s total.

Strong support from home

Although purchasing power has slowed slightly, as more Chinese consumers become wary of over-spending, the textile industry in China still experienced high demand from its domestic market. Due to the population size, the industry also has a safety net in terms of clothing being a basic necessity. Domestic retail sales of apparel grew by 8% in 2018, and have continued to grow in 2019, although not as quickly as previous years.

Part of the panel discussion focused heavily on the importance of maintaining a strong consumer economy in order to maintain strong domestic purchasing power. This is a concern seen around the world. Mr Paul Alger (UK Fashion & Textile Association), warned of the social consequences and lack of purchasing power that come as a result of a weak consumer economy, as recently seen in the UK. Similarly, Ms Rosette Carrillo (Confederation of Wearable Exporters of the Philippines) noted that the Philippines had much to learn from China’s domestic market growth. Meanwhile, Mr K V Srinivasan (TEXPROCIL) indicated that India’s consumer economy benefits from their strengths, including a rich textile heritage and skilled technical workforce.

China’s next steps

Investments in the textile industry have also slowed as US-China trade war frictions knocked confidence. However, there is still growth. China’s textile industry’s investments in fixed assets grew by 5% in 2018, before slowing in the first half of 2019. Investments have focused on technology and innovation, resulting in increased productivity.

With its position at the forefront of the world’s textile industry, China is now entering a new era of textile manufacturing and design. Three key missions were noted for China’s plan moving forward: technology and innovation; culture and local talent; and sustainability.

Sustainability was a key point during the panel discussion. Ms Carol Hanlon (Textile Clothing Footwear Resource Centre, Australia) pointed out China’s capacity, as a leader of textile production, to drive change in circularity. Both Ms Hanlon and Mr Alger acknowledged the demand for sustainability in the future consumer: younger generations who are increasingly associated with climate activism.

Overseas trade and investments: the latest figures

The Belt & Road initiative was first proposed in 2013, and in 2014 became one of three major national development strategies in China. As of July 2019, the Chinese government has signed co-operation agreements with 136 countries along the route, which runs through three continents. During the initiative’s first five years, the total trade volume between China and countries along the Belt & Road route has exceeded USD 6 trillion, accounting for nearly a third of China’s total trade in goods during this period.