A Look at China’s New Political and Economic Trends Under the New Normal
Here is our analysis report on this year’s ‘Two Sessions’ that finished on March 15th, 2015. As we understand it, the outcomes of the ‘Two Sessions’ can be summarized in 3 points:
- The Chinese economy will continue to slow down under increased pressure from economic adjustment and proactive reform in 2015
- The economy isn’t declining across the board – some industries will benefit from the New Normal
- The Chinese government will continue to streamline administration and delegate powers to lower levels of government
Chinese traditional industries, particularly traditional manufacturing, will bear the brunt of the oncoming economic slowdown. The textile industry, as one of China’s typical traditional manufacturers will continue to face such challenges due to decreasing orders, increasing costs and declining profits. The positive news is that both the Chinese government and textile industry are seeking to stem the economic downward trend.
We advise the US cotton industry to adapt to the New Normal and explore opportunities according to industrial, sectoral, and regional priorities which the Chinese government plans to support to elevate the demand of cotton in general. China will continue to be an important marketplace for the growth of the US cotton industry.
For more details, please refer to the attached report.