Beijing's manufacturing and textile sector weakens
The April PMI index is still above the figure of 50, but is down on the previous month. The value of Chinese textiles in the world is down from 38.6% (in 2015) to 35.8% (in 2016). The countries of South and Southeast Asia replacing China.
Beijing (AsiaNews / Agencies) - In April, the Chinese manufacturing sector dropped slightly, showing stagnant economic growth in the country. One of the sectors most in crisis is the textile sector.
Today the government released the PMI figures (Purchasing Managers' Index), which measures the expansion or otherwise of trade. Above the figure of 50 indicated an expanding economy while below a contracting one. The data for the April PMI fell to 51.4, from 51.5 in March. While remaining above 50 points, experts fear difficulties in the Chinese economy due to rising state debt and lower demand from the rest of the world, especially from the West. In addition there are signs of increasing commercial tension between China and the United States, which are said to have long been ready for a tariff war.
Textiles is among the most affected manufacturing sectors. According to the World Trade Organization (WTO), Chinese textile exports fell from a value of 236 billion US dollars in 2014, to 206 billion in 2016. The value of Chinese textiles in the world market fell from 38.6% in 2015 to 35.8% in 2016. The reduction is mainly due to a decrease in imports from the European Union, United States, Japan.
Labor costs also contribute to the reduction. The minimum wage of a worker in Guangdong is now $ 336 a month, more than double the wage in several countries of South and Southeast Asia which are replacing China.
Countries like Bangladesh, Vietnam, Malaysia, Cambodia are replacing China in production, even if they import the material they work with from China. One example: Bangladesh’s textile imports from China, measured by value, rose from 39%in 2005 to 47% in 2015.
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10/04/2018 21:36
