China's Garment Industry Will Enter The "Post Crisis Era" &Nbsp In The Next Ten Years; Chinese Clothing Will No Longer Be Cheap.

At the Beijing Marriott Hotel Northeast hotel in Beijing today, "China clothing ten years, brand and strategy - 2010 NetEase clothing Summit Forum" invited relevant government leaders, top domestic garment enterprises, experts and scholars in garment industry to review and prospect the past ten years and ten years of China's apparel industry.

In the forum, Cheng Yongru, director of the European and American students' meeting with the US branch, said that the garment industry will enter the post crisis era in the next ten years. People may talk more about rules in the post crisis era. Fair trade will win the hearts of the people, and China's clothing industry will also go out of the low price.

Cheng Yongru: Hello, everyone. I am delighted to take part in the ten year forum of China textile. First of all, I would like to say that what I said today is on behalf of me, not the official opinion of the Ministry of Commerce. What I want to talk to you is two sentences: one is the rule game, the other is the system competition. On the two level, one is the rule and the second is the system. Why do we have to discuss such a problem? China's accession to the WTO is ten years, so I think this forum is very good. It is very meaningful for us to review the past ten years and look forward to the next ten years.

China's accession to the WTO has brought great changes to China, and has brought opportunities and challenges to all industries. Especially when we formally joined the WTO, there are many different opinions in different countries. However, it is a gospel for our garment industry and China's textile industry revitalization plan.

So today, I want to talk about four aspects. One is the simple review of the past ten years. Another is the financial crisis of last year, and the next ten years.

In fact, the past ten years can be summed up. It should be said that globalization is in the ascendant. But after China's reform and opening up, there is such a process. But the real integration with the global economy is to join the WTO. In terms of system, concept and will, plus the market, it should be the era of integration into the world. Along with the wave of globalization, with the wave brought by globalization, we are happy when the market is good, and we are also affected by the bad market. In fact, joining the WTO should bring great opportunities to our textile industry. In 2005, we joined the WTO. The biggest achievement of multilateral negotiations was the integration of textiles. Other countries abolished quotas, and quota was not available in 2005 January. But after that, because we have accumulated for a long time, we have been growing rapidly for a while. Under such circumstances, you should think that 2005 is also surging. From the United States, the European Union, Brazil, South Africa, many developing countries and even Tunisia all want to talk about export restrictions with us. We have a clause, with a growth of only 7.5%. So the Chinese government, including the Chinese industry, has been under tremendous pressure.

But I think global liberalization, Global trade development and free trade are a process. After all, it is a tortuous process, gradually recovering free trade in this process. After the abolition of the textile quota in 2005, we signed some agreements for the needs of the environment. By the end of 2008, including the EU in 2007, there was no such measure, and the 08 years and the US measures ended. But there are still some monitoring problems.

During the 2009 financial crisis, the situation was very special. But I think one is because of the previous quota problem and the quota protection. Therefore, the similar industries in other countries have relatively few requests for all kinds of trade protection brought about by our products in China. But after the cancellation of the quota, there was a year of observation. The data in 2009 gave other countries, such as the European Union and the United States, such monitoring, which provided them with basic data. From these data, it is hard to say how the situation is in 2010. But when we talk about changes in the external environment and join the rules of WTO and gradually eliminate some rules that are not good for China, I think China's ten years are also such a process. As we all know, we have some provisions. Of course, the Chinese government is also strongly against it, including the US tyre safeguard case, which the Chinese government strongly opposes. A market economy clause will also be abolished. So I think our Chinese government will gradually become fair in this period.

This is the external environment. Today I mainly talk about the international environment. A lot of competition is reflected in the price, especially for many of our brands, including the famous brands in our country, which are very lively brands, and there are cultural differences after going abroad. For example, the names of good news birds are pleasant to hear, and Chinese culture is very gratifying. But if translated into English, they don't know what it means and there are cultural differences. In addition, foreign consumers have a process of acceptance of the brand, so Chinese brands enter the international market and form a big brand in the international arena. There is also the establishment of an integrity system, as well as the cost increase, the constraints of labor, personnel and resources bottlenecks. The gap has just been mentioned, the internationalization of brands, and our sustainable development, and encourage the development of price competition mode, this development mode should not be too much continuity.

In 2009, it was a period of crisis. Actually, Wang Zhuo also said that consumer confidence was not enough, and that all countries adopted some policies, including the adjustment of trade policies of various countries, reducing imports, supporting the development of domestic industries, and so on. Our Chinese government also took some emergency measures during the crisis period, including the re callback of the export tax rebate, and the callback of the relevant policies had specific historical conditions. But in the textile industry last year, I analyzed consumption better. Last year, we made anti-dumping, countervailing and safeguard measures, and we allowed two counter two guarantees in the rules. There are also various other protective measures. We just saw a report yesterday that the 2009 trade report and trade report said that global trade protection was not bad, but the protection of China's trade should be more serious. As you know, the latest statistics show that our exports last year accounted for 9.6%, and the year before last was 8.86%, but we suffered about 35% of the total anti-dumping duty and 70% of the world's anti subsidy.

Last year, our global trade exports fell by 12%, the biggest decline since World War II. China has also experienced many years of growth, with exports falling by 16% and imports by 11%. This has caused serious challenges to our industry, our employment, economic development and social stability. Globalization has also faced some challenges, including the impact of the flow of funds and personnel. I think the next ten years, I summed up four sentences, not necessarily accurate, for your reference.

In the next ten years, because of China's accession to the global trading system and the global economic system, China's every move and action will have some impact on the global system. International competition is inevitable. We have been growing more rapidly in recent years. So I personally feel that there may be a problem of internationalization of international competition. I also said that China made value-added products in many ways, such as Japan and Korea, including Germany, their raw materials, their semi-finished products processed and re exported in China, and our Chinese made products have become global manufacturing. But the label is made in China, which may be the issue of Sinicization of international competition.

The second is the opening of our domestic market and the introduction of foreign capital in our country, so our domestic competition is also fierce, showing the tendency of internationalization. Our domestic garment enterprises also want to compete with the internationally specified brands, as our value chain goes up. The third is the normalization of trade frictions. In addition, trade rules are fair, which requires our efforts, because trade rules were later joined by WTO. Many trade rules are unfair to us. We should actively strive for rules, so I think our government and all sectors of our society will strive for fairness. This rule gradually tends to be fair, but it is a long process. Besides, what are fair rules and fair trade?

I think the next ten years can be called the post crisis era. Why is it called the post crisis era? Because the crisis is not completely over, but we are talking about the development of China in a more long-term and broader perspective. Under such a big pattern, many countries have learned from the financial crisis, including some changes in the US, and the consumption structure has been adjusted. Like France's consideration of the competitiveness of French enterprises, the recovery of manufacturing industry, the recovery of manufacturing industry, the competition of the whole industry and the global pattern, I think, are some new changes in the post crisis era.

In the post crisis era, people may talk more about rules, because we used to talk about international rules. In fact, we joined WTO for ten years, and I myself did seven or eight years. So what is the rule? We need to reanalyze the international rules. We should talk about international practice, but for rules, I want to increase the understanding of rules. There are many explanations for the rules. How do we interpret them? Because all countries believe that it is in the application of rules, but whether it is strictly following the rules, there is a game process.

In addition, the concept of fair trade is deeply rooted in the hearts of the people. We have always emphasized free trade, emphasizing trade protection, and now more emphasis on fair trade. Western society including the European Union, the United States and even some African countries, the international community now has a more popular word is fair trade. Some time ago, I went to England for a business trip. The tea I drank in the guesthouse I was staying on was labeled with "fair trade", which is the same thing as we understand. Consumers may be willing to spend more money when they see such signs. There is a problem of values. They feel that the process of producing this product is very good in terms of the conditions of the workers. Moreover, as an importer, there are no plates and our importers, and there are no plates and our farmers, so this is fair trade. This is a new concept. Now, in the European Union, if your commodity logo is labeled "fair trade", many consumers prefer to spend more money on it, so there is a fair concept that is deeply rooted in the hearts of the people.

In addition, I want to remind that in the post crisis era, China will go out of the low price era. We have the cost driving factors, the reform of our market, and the factors of our true return. In addition, China's long-term supply of cheap products to the world is not sustainable. It can't always be like this. Like Japan's one dollar shirt after World War II, we will find very low price products. Let's think about the load bearing of energy, environment and resources in our mind. From the economic point of view, there is a scarcity problem. If resource elements are not scarce, there is no concept of economics. If there is scarcity, then there will be cost. If there is cost, we will have to consider China's products. Now, after 30 years of development, how will we develop in the next ten years?

I just read a report yesterday that there was an interview in the global times. In March 26th, "cheap China, the price of China's competitive advantage", he said that Chinese goods were too cheap to be a dangerous signal. I recently read his book, that is, China price, but we know that in the United States, when other countries mention this, they will use the concept of low price China. What is China's reform? Many people understand that, including WAL-MART's procurement in China, they say that in the past few years, the price of China at any price, I can find a lower price in two days. Are we still going to do that? No matter what kind of price, it will also find a lower price. This question is worth our consideration. Foreigners are thinking, Chinese people also need to think, we also need to think about the textile industry. In the next ten years, do you still have to spell prices? Many products are not priced at all, and no one can buy them. For example, high-grade products may be sold on some occasions and may not be bought elsewhere.

In the next ten years, we can not rely solely on this price war. This needs to take into account the non price competitiveness. In China, this is relatively small and the price is hard to fight. Consumers like to spend very little cost and cheap, but can your price keep so low? Non price competitiveness should be highlighted in the next ten years. Many products are high quality, sell well, and earn a lot of profits. There is a price problem of goods. I propose the non price competitiveness for your reference. Brand, upstream and downstream integration, collaborative relationship, market innovation concept, consumer concept and some leadership and so on, many ideas are some non price competitiveness. Like an intangible asset, many of us are not optimistic about it, but intangible assets tend to be very expensive.

Just now, we have talked about the price, and want to say that we have a process in the first two years of our price, including our labor law, and our environmental protection, our factor market, our trade policy and exchange rate policy, which are moving towards the development of our industrial upgrading, but the price problem is a long process. So in 2008 and 2009, we were too fast, we could not do anything fast, and we should not be too quick to destroy the market mechanism. In 2008, many small and medium-sized enterprises could not bear all kinds of pressure, such as the financial crisis collapsed, and this is not acceptable. In addition, non price competitiveness has gradually emerged.

In the next ten years, there are many new fashions for environmental protection. There are also some new trends in consumption, the spirit of innovation and the speed of change. From the perspective of enterprises, we should integrate into the international market, the integration of international trade, the integration of commodity circulation, marketing and manufacturing, and the integration of manufacturing and brand. In addition, the enterprise strategy should consider the global management and operation, consider the integration and acquisition within the whole world, whether the merger can be integrated or not, and the culture can not be melted into it. We can not buy foreign enterprises and expel all the foreign workers. Can we have such a mind to do such an appraisal, whether our culture can be tolerated or not? Our acquisition abroad has succeeded and failed.

In addition, we enter the R & D and sales network, a new era of profit, this is very important, because I did anti-dumping, many of our products went abroad, some prices were good, some prices were relatively low, and others were anti-dumping. Many foreigners say that only when China can enter the global sales network one day can you really avoid anti-dumping. Of course not, but I believe in such a situation, we do not feel wronged. Now we feel very bad. Our price is low, so anti-dumping. Because we really can not afford the price, if our clothing enterprises can buy the entire sales network, we can have a high profit. In the past 30 years since China's reform and opening up, I think our importers and retailers who import Chinese products have made a lot of profits and are very rich. Our profit margin in the industry may be between 3% and 5%, but we can't afford to buy it because we compete with ourselves, and there are a large number of importers. Only after the market is integrated, can we not impose on the foreigners when we have the right price ratio, including the consumption network, and the Chinese people have the right in the consumer network.

There is also the problem of institutional integration, which is rather complicated. This involves competition among nations, which involves the globalization of global industries, the development of industries in various countries, the adjustment of policies and structures of various industries, and some trade frictions. For example, how to look at the relationship between governments intervening in the market, how to look at the issue of subsidies, how to treat the problem of independent innovation and how to look at the issue of development stage? The EU has the EU system, the United States has the United States system, China has the Chinese system, how to cooperate, involves many deep-seated problems. For example, many countries in the United States, Canada, Australia, India and Brazil have launched countervailing investigations against us. They think that our banks and our hydropower are subsidized. He uses external bases to calculate them. In fact, this is a problem that often misunderstands our system. He does not understand, or he uses our institutional framework to understand us. In the next ten years, there is still a question of competition and cooperation among different countries.

Our enterprise competition is not just price, and many times we actually borrow the competitive model. Because I am a student of Mark, he talks about enterprise strategy. State GDP is not made by the government or by industry. Our enterprises have their own strategies. At the same time, our consumer market is more active. We have more picky consumers to cultivate our higher products. We also need to transform our elements market, education, health, human resources training and training, as well as the development of our supporting industries, and cooperate in all aspects to forge our competitiveness. This is not just part of the price.

From the international environment, the parties concerned are highly concerned. I think sometimes when we communicate with other countries, we will mobilize all aspects of strength, even let the media and the public be efficient, downstream industries and trade unions. Of course, trade unions also need to communicate more difficult, consumer associations, retailers and so on. Foreign parliaments are also concerned about our problems. For example, after the entry into force of the United States Parliament and the European Agreement on the Lisbon agreement, the European Parliament has more say. In addition, how do we prosecute foreign courts and other governments in other countries for unfair practices and unreasonable practices, including WTO? I just returned from WTO negotiations. When WTO EU investigated anti-dumping measures against us, they abused their power, so we brought the EU to WTO, and we adjusted it as a multilateral rule.

This year has passed three months, but I think this year's situation, this is my personal view for your reference. I think this year, from the point of view of global environment and trade, mainly from the point of international trade, I think there are some trade frictions and trade disputes between the winners and losers in the traditional sense of globalization than before the financial crisis. Now I think that after the financial crisis, or after the downward cycle of our economy, slow economic recovery and cyclical uplink bring market opportunities. Often, when the cake rises, there will be problems when the cake is uneven. This is the way I think of market opportunities. Another reason is that there is growth, but there is no employment. Now our unemployment rate is so high that the Americans are 9.7%, and China is around 10%.

From this year, or from our medium and long term trade frictions, one is the game of rules, we are using the rules, we also use anti-dumping, they also use, how to carry out the game of rules. There are competition in the system, as well as the election in the United States and other factors. Children from all countries have milk to eat, and those who lose say that they won't speak. Consumers earn a lot of benefits, but they are very scattered. When there are some problems in foreign factories, he will come out and say how to look at public choice here.

I think the countermeasure is from the government's point of view, we must continue to adhere to the policy of both offensive and defensive, enhance the guidance of trade policy, enhance professionalism, and effectively keep the stability and predictability of international trade. Our enterprises need to understand important things. Especially after we enter the international market, we must have a sense of urgency and enhance the global vision when we are in good condition. At the same time, we must have differentiation in our business strategy, and we must not only focus on price competition.

Our industry business association, our intermediary organization should play the role of the bridge and strengthen services. At home and abroad, we should send out our voice, including many hot issues. Our enterprises and our associations should voice our voices abroad, otherwise they will not know one side or another. Especially in the United States, many situations are not optimistic, but many people say that members of Congress even say that some so-called well-known economists are not necessarily right. They do not know much about China. Our industry should go abroad, to the international voice media to voice our voices, to reflect China's voice and let the world know China. We have been in the club for ten years. We know the world and let the world know China.