Textile Industry Ushered In High Cost Era

From the perspective of China's economic and textile development stages, the regional industrial pfer of China's textile industry is not only based on the East, the middle and the west, but also the overseas investment and construction.

With the change of market and economic environment, the regionalization of textile industry in China should speed up the pace of allocation and pfer of elements in the East, middle and West. At the same time, we should make full use of international market resources, optimize the allocation elements, and enhance the international competitiveness of China's textile industry.

In 2010, textile industry in China gradually got rid of it.

Main characteristics of China's textile industry

With China's accession to the WTO, with the abolition of the textile quota system, the potential competitiveness of China's textile industry has been fully demonstrated.

Driven by the demand of the international market and the promotion of the upgrading of consumption structure, the investment and production of China's textile industry have seen rapid growth.

According to the relevant statistics, in the past 2002-2007 years, the main products of China's textile major categories are growing at an average annual rate of over 2 digits. The output of chemical fiber, yarn and clothing has almost doubled by 5 times in the past 5 years, while the output of grey fabrics and dyed fabrics has increased by 82.4% and 91.9% respectively.

After 2007, with the outbreak of the global financial crisis, the demand for International Textiles declined sharply and showed a continuous downturn.

Corresponding to the huge production capacity formed in the early stage, the contradiction between the relative surplus of the total textile volume in China has become increasingly prominent, and the growth rate has dropped sharply.

From the perspective of the industrial process, China is still in the stage of pformation from the early stage of industrialization to the middle stage of industrialization. China's international comparative advantage is neither in terms of capital nor technology, but mainly in the comparative advantage of resources, and the low price advantage of labor still exists.

Because of the unbalanced development of China's regional economy, the low price advantage of the eastern region has weakened, and the vast western region is still in the pition period from the agricultural society to the early stage of industrialization, which has abundant and cheap labor resources.

From the development trend of the international spinning industry, the high quality, high value-added products brought by the high-speed, high-efficiency, continuous production and new spinning equipment brought about by electromechanical integration have promoted the pformation of the spinning industry from labor-intensive to capital and technology intensive.

In the future division of international trade, who has the advantage of technology will be in the advantageous position in the international division of labor.

Although China's cotton yarn output ranks first in the world in terms of total volume, the overall technical equipment is seriously lagging behind. The new spinning equipment comber and automatic winding machine can not only compare with the developed countries, but also have a considerable gap compared with the main competitors, such as India, Pakistan and Turkey.

Since 2009, the state has adopted a series of macro-control policies around "ensuring growth, expanding domestic demand and adjusting the structure", which has provided a more relaxed domestic development environment for the textile industry.

The State Council promulgated the textile industry readjustment and revitalization plan in April 24, 2009.

According to the plan, from 2009 to 2011, the main tasks of China's textile industry readjustment and revitalization are eight: stabilizing domestic and foreign markets, improving independent innovation capability, accelerating technological pformation, eliminating backward production capacity, optimizing regional distribution, improving public service system, accelerating the construction of independent brand and enhancing the competitive power of enterprises.

As an important accelerator to promote the construction of a textile power, this plan is conducive to the textile industry to overcome the impact of the financial crisis, and the most fundamental and long-term significance lies in promoting the structural adjustment and industrial upgrading of the textile industry.

In July 2, 2010, the Ministry of industry and information technology issued the guiding opinions on promoting the pfer of the textile industry, pointing out that the eastern part of China has pferred some manufacturing links such as spinning, reeling, weaving and products to a certain industrial base in the central and western regions and Northeast China by means of merger and reorganization or new investment; and supporting textile enterprises with orders to strengthen cooperation with textile enterprises in the central and western regions and Northeast China through purchasing and business cooperation, and encouraging the dominant textile enterprises to strengthen their docking with the textile enterprises in the Midwest and Northeast China.

Khmer price depresses textile profits

Mao Shuchun, an expert in the Cotton Research Institute of the Chinese Academy of Agricultural Sciences, predicts that by the end of the 11th Five-Year, even if the cotton planting area is increased by 10 million mu on the basis of the existing about 80000000 mu, the annual import volume of cotton in China still needs to reach 4 million 500 thousand to 5 million 500 thousand tons, so that the balance of production and demand will be realized. At this time, the dependence of cotton will increase to 36% to 40%.

For China's textile industry, cotton resources have entered a strategic shortage period.

There is no doubt that high cotton prices constitute a cost pressure on cotton spinning enterprises producing lower end products downstream, forcing many small and medium-sized enterprises to temporarily cut production or stop production.

Industry analysis: "the high cotton price puts forward higher requirements for the management and management capabilities of textile enterprises, and will speed up the polarization of the textile industry.

The bargaining power of backbone enterprises is relatively strong, and has the advantages of capital and information. Industrial resources gradually flow to large enterprises in this process.

From the links of cotton spinning industry chain, the upstream cotton and yarn are the most expensive links, and the price of fabrics and garments that go downward is relatively small, and the cost will gradually be pmitted to the terminal in the future.

The China Textile Industry Association believes that the fluctuation of the upstream cotton industry has a certain impact on the textile industry. However, under the stimulation of the rescue measures at home and abroad, the world economy and China's economy have entered a comprehensive recovery track, and the macro environment of the textile industry has been improving.

Judging from the trend of the industry, the China Textile Industry Association has the following prediction: first, although the international market has downward pressure, it has the basic conditions for further warming and recovery.

Exchange rate volatility will become the primary factor affecting the export of the industry, and it is expected to slow down export growth slightly.

Two, the domestic demand market will maintain steady and rapid growth under the support of employment and policies.

Three, the low base factor gradually disappeared during the same period last year.

Four, the price of raw materials will continue to rise at a high level, and the cost pressures of the middle and lower reaches will become more prominent. The upstream enterprises will gradually become more obvious as the inventory falls and the financing environment tightens.

Overall, the growth rate of production is basically flat or slightly down, so the profit growth rate is bound to decline.

High priced cotton should not become a stumbling block for cotton spinning enterprises

"At this time, the more we pay attention to the development of new products, the Datang printing and dyeing has always been targeting the production of high value-added products. In the current difficult times, this position is more important for its survival and development.

This is a defensive strategy.

Chen Haidong, deputy general manager of Datang dyeing and printing company, said.

He believes that for some printing and dyeing enterprises with low technology content, because of their small profits, their profit way is mainly in quantity and cost control. In the face of this year's market situation, such enterprises will face great risk of survival.

And actively developing new products and improving the added value of products, enterprises will be able to grasp the right of independent pricing and increase profit margins.

Development of new products can not stop, in addition to the market demand for textiles, and that is, a new product development, will soon be copied, reduced to ordinary products, its price is pparent, and profits will be reduced.

Sun Huaibin, director of the Ministry of industry of the China Textile Industry Association, said: "the situation is quite complicated this year.

Although the international economic environment has been better than in 2009, the impact of the financial crisis on the industry has not been eliminated. The unemployment rate in the main developed countries is still high. The consumer market has not fundamentally improved. The support power of consumer credit is still very weak. In addition, the "currency war" which has been heated up in recent years, various factors make China's textile industry still face greater risks. In China, the macroeconomic situation in China slowed down in 2010.

Factors such as soaring raw material prices and quickening the pace of RMB appreciation will play a restrictive role in the development of the textile industry.

"We must see that the development of the textile industry has reached a critical stage.

First of all, according to the operation of the industry, we should actively change the way of development, pay attention to industrial upgrading, and clarify the purpose and key points of the 12th Five-Year work.

Secondly, we should make a good judgement of the situation and study the total supply and aggregate demand.

On the one hand, from the perspective of demand, China's economy is growing rapidly, people's living standards are constantly improving, and consumption stimulating clothing demand is increasing.

On the other hand, from the point of view of supply, China is a large fiber producing country, with a large supply of fiber, which not only satisfies the demand of the market, but also solves the employment of the people's livelihood.

Finally, in this critical period, we must vigorously develop circular economy, study fiber recycling technology, and tap the development potential of the textile industry.

Du Yuzhou, President of China Textile Industry Association, pointed out.

Rational allocation of resources

From the perspective of China's economic and textile development stages, the regional industrial pfer of China's textile industry is not only based on the East, the middle and the west, but also the overseas investment and construction.

With the change of market and economic environment, the regionalization of textile industry in China should speed up the pace of allocation and pfer of elements in the East, middle and West. At the same time, we should make full use of international market resources, optimize the allocation elements, and enhance the international competitiveness of China's textile industry.

In fact, after the adjustment of the industrial structure in the late twentieth Century, the Chinese cotton textile industry has been effectively controlled and the overall quality of the industry has been improved. Especially after the merger and reorganization, the state-owned textile enterprises have formed a number of strong and well-developed enterprises. These enterprises have become the backbone of China's textile industry to compete in the international market after joining the WTO.

According to the guiding ideology of "doing something for nothing", Chinese cotton spinning enterprises should pay attention to the efficiency and output of factor input, break the narrow sense of regionalization, and draw lessons from the successful experience of the world pnational corporation, and build the aircraft carrier of textile.

"China's textile industry has accumulated a lot of experience, and it will also usher in new progress. Although in the next twenty or thirty years, a vibrant economy may spawn new industries and compete with existing industries, I do not think China's textile industry will disappear, just as I do not think the US automobile industry will disappear." Professor Edmund Phelps, an American economist and Nobel Laureate in economics, is convinced that China's textile industry will continue to play an important role in the global economy in the long run.