But what is worrying is that it is an indisputable fact that the international competitiveness of my country's textile and apparel has declined. Gao Yong, vice chairman of the China Textile Federation, said that prices are the main driving force for the growth of textile exports, but my country's share of the world's major markets is declining. At present, my country's share of the three traditional markets of the United States, the European Union, and Japan has fallen from 65% to about 40%. In the first quarter, my country's exports to the EU accounted for only 37.5%, a year-on-year decrease of 1.04%; the global share of exports to Japan was only 69.74%, a straight decline of 2.28%. A large number of lost orders have been quickly eroded by Southeast Asian countries such as Vietnam, Bangladesh, and Indonesia.
From a long-term perspective, to solve the cotton price puzzle, it is necessary to accelerate the reform of the cotton circulation system, improve the cotton macro-control mechanism, and realize the marketization of domestic and foreign cotton prices. According to reports, the National Development and Reform Commission has initiated the reform process of my country's cotton management policy and is formulating a timetable. China Textile Federation is also conducting surveys in major cotton producing areas, and will propose policy demands and measures to relevant state departments for direct cotton subsidies and cotton system reforms to promote the matching of domestic and foreign cotton prices.