How To Solve The Economic Dilemma And Paradox Faced By China'S Textile Industry

China's textile industry has gone through the great reform of the international trade mechanism in the post MFA era and the trade frictions after the comparative advantage of China's textile industry has been released.

But the road to revitalization is not a smooth road. We are faced with unpredictable changes, uncontrollable risks, unavoidable hardships, difficulties, difficulties, difficulties, confusion and conflicting conflicts.

Wen: Gu Qingliang (director of textile economics and management research center, Donghua University)

When facing the predicament of RMB appreciation, we should pay attention to the export paradox: the more export, the appreciation of domestic currency, the increase of export cost, the decrease of competitiveness and the reduction of exports.

Therefore, we must change the export oriented mainstream trade policy from the early stage of economic growth to a balanced trade policy. "Import" may be conducive to export and sustainable trade growth.

In textile

The dilemma and paradox of China's textile economy and management are long-standing problems, such as equity and efficiency; some have the characteristics of the times (or specific scenarios); some are independent; more are intertwined, some of which have some solutions, some of them are still waiting for time.

In any case, this is the only way to a new round of development. It is also the mission of China's textile theory and business circles.

Looking at the current economic problems, a large number of difficulties lie in the pition period:

Economic dilemma and paradox often occur in the period of economic pformation, historical pition and social change.

At this time, the old production relations and the old system can not tolerate the growth of quantity and the development of connotation. The old growth mode can not be solved or applied to the expansion of new productive forces. The old ideas and epistemology can no longer explain the economic phenomenon and guide practice.

However, it is precisely this dilemma that shows the critical state of abrupt change and opens the window of opportunity to discover new rules and new paths.

The dilemma and paradox are both challenges and tests of human ability and wisdom, as well as the source of new ideas, illuminating the new development road and guiding the new realm of the turning of the peak.

Phenomenon Perspective

"Dilemma" reflects the situation of sudden change, step change, pition and pformation, while "paradox" implies the law and logic of things in the pitional period.

People can find ideas, theories and approaches to explain, analyze and solve these dilemmas from the paradox.

"Dilemma" challenges traditional thinking

Dilemma (dilemma) makes people have to choose between two things that are not ideal and action.

For example, in order to stimulate the economy and speed up the crisis, we need to implement a loose monetary policy. However, increasing inflation requires tightening credit and preventing economic overheating, making it difficult to make decisions.

Again, faced with recruitment difficulties, we must raise wages and work and living conditions; on the other hand,

The dilemma is different from the difficulty. Both are difficult, but the former is the difficulty of decision making and the choice of alternatives. The latter is not difficult to make decisions, but only by effort or at a certain cost.

In most cases, the dilemma can not be solved by traditional methods. If we want to curb inflation, eliminate economic overheating, and stimulate the economy, policies should be balanced and mutually exclusive.

"Paradox" opens the breakthrough of innovation

Paradox (paradox) is a seemingly contradictory, but (or possibly) correct statement and proposition.

For example, the most famous Adam Simy paradox of Economics: don't think that social welfare is the result of public interests of bakers, shoemakers, barbers, and they increase their social welfare by making a living for themselves.

This paradox becomes the foundation of economic theory and market system.

Another famous paradox of thrift: people tend to be thrifty under the bad economic situation, but the collective behavior of frugality and reduced spending may lead to a sharp decline in national income, and its multiplier effect is a vicious circle.

Paradox is different from self contradiction (Contradiction). The former is actually a new law or the logic of revealing things, while self contradiction is illogical and contrary to the law.

Paradox appears as an opportunity for theoretical innovation and further improvement.

For instance, when facing the predicament of RMB appreciation, we should pay attention to the export paradox: the more exports, the appreciation of domestic currencies, the increase of export cost, the decrease of competitiveness and the reduction of exports.

Therefore, the export oriented mainstream trade policy in the early stage of economic growth must be revised to a balanced trade policy. "Import" may be conducive to export and sustainable trade growth.

The dilemma faced by China's textile industry in the pformation period

Dealing with difficulties and paradoxes test the wisdom of the industry

In the technological innovation and theoretical development of textile and garment industry, many innovations are made through the analysis of dilemma and paradox.

Such as mass customization (to solve the dilemma of scale and personalization); clothing "unit production system" (UPS, solve small batch and multi varieties, fast delivery and mass production dilemma); "fast fashion" and "cheap fashion" business mode (solve low cost parity and fashion two difficulties).

"Paradox" in Textile Economic Management

Excessive protection of industry will reduce industrial competitiveness (Potter paradox).

Trade protectionism in developed countries, which resists imports, causes economic slowdown in other economies.

In order to survive in the crisis, to lower the wages of workers, to reduce the purchasing power of consumers and to reduce domestic demand, it is more difficult for enterprises and workers to survive.

Corporate social responsibility needs to increase costs, but it will also increase labor productivity and customer loyalty, improve corporate reputation and credit, and ultimately reduce costs and increase profits.

The more exports, the larger trade surplus, the pressure of RMB appreciation, the decrease of export price competitiveness and the decrease of export profits.

The highest level of management is to govern by doing nothing.

In the society, the foundation of the strong is the weak. In the market, the interests of the strong are based on the interests of the consumers.

Hegemony, hegemony and Overlord are unsustainable.

The basis of large clusters is small businesses, small products constitute large industries, and the more dispersed and miniaturized industries, the greater the external scale effect of clusters and the intensification of external industries.

Promote sales at low prices, consumers' customary price expectations, customary hindered sales of new products, seasonal surplus goods become normal and sales decline (low toxic drugs in fashion industry).

Popularity is the foundation and eternal driving force for fashion industry, but fashion enterprises can not afford it.

Once fashion becomes popular, fashion is no longer fashionable.

The result of running in the fashion market is that the market rejects the same product and reduces sales.

As a link in the fashion value chain, we only want to make money by ourselves and not make others earn. In the end, we can not make money ourselves.

The foundation of strong Italy fashion is specialized, refined, simple, small, flexible, flexible, collaborative and integrated.

In the period of abrupt change, social pition or economic pition, various difficulties are often intertwined, for example, the difficulty of recruitment is related to the industrial structure, wage level, inflation, international competition, trade situation and the personalized short term of consumer market demand.

Therefore, the real difficulty of solving the dilemma is to find a systematic solution.

It is helpless or positive to deal with the dilemma and paradox. Whether it is a temporary solution or a profound insight and innovative thinking is not only a reflection of attitude, but also a reflection of wisdom and strength.

Solution strategy

Predicament and paradox are the permanent challenges facing mankind and the eternal source of ideological innovation.

The so-called solution, namely analysis (structure), interpretation (Yuan You), dispel doubts (answer questions), solve (program), emancipate (thought and productivity).

Innovative development depends on the theoretical circles of the industry.

China's textile industry is the focus of the world economic pformation, the center of international trade friction conflicts, and the key to the restructuring of the global industrial network (GPN).

China's textile industry is promoting the process of globalization, industrialization and urbanization, carrying the important tasks of national economy and people's livelihood, industrial revitalization and new economic development.

The change of this structure, level and scope leads to a lot of problems which can not be helped by traditional thinking, customary logic, conventional methods and standardized programs.

We must rely on scientific innovation, technological progress, pformation of business mode and reform of production mode, especially to pform the relationship between industrial chains, improve the ability of managing value chain, and strengthen enterprise collaboration.

This requires innovative thinking and philosophical wisdom in the textile and theoretical circles.

The dilemma and paradox of China's textile economy and management, some of which are long-standing problems, such as equity and efficiency; others are characterized by times (or specific scenarios); some are independent; more are entangled together, some of which have some solutions, some of which are still for some time.

In any case, this is the only way to a new round of development. It is also the mission of China's textile theory and business circles.

Dilemma and paradox: the opportunity of metaphor innovation

Domestic competitiveness focuses on growth quality

With the development of economy, the structural shortage and frictional unemployment of labor force have become a big problem in the industry.

When 80 and 90 become the main body of labor, this problem is even more serious. China is a large textile raw material, but lacks the right to speak and the pricing power. The chaos of raw material supply has caused great harm to the textile industry. The contradiction between inflation and RMB appreciation is related to the structure of China's economic and trade structure: the most valuable labor in China's textile industry is at a low price in exchange for the "loose" foreign exchange. In the post financial crisis era, on the one hand, it needs to stimulate the economy and maintain growth. On the one hand, it also needs to curb inflation, while China's textile industry is under pressure, the price of textile and clothing is weak, and the price of raw materials is soaring.

We should reform the production and circulation system of natural fiber raw materials, and accelerate the corporatization, intensification, integration, contract and technology of agricultural production.

We should optimize the trade structure, appropriately reduce the degree of exportation, expand domestic demand, especially expand the consumption of domestic textile and clothing, moderate the growth rate, raise the level of China's textile science and technology, improve the quality of growth and labor productivity.

Global industrial restructuring advocates mutual benefit

China's accession to the WTO in 2001 and the extinction of the multi fibre agreement (MFA) in 2005 have made the world's textile industry go to the right way of liberalization. However, the short-term release has a significant impact on the restructuring of textile GPN and the trade pattern. China's textile industry has been in the low end value chain for a long time. Although it plays a comparative advantage and increases the market share, the low price is more likely to cause trade friction. The huge textile trade surplus has accumulated economic strength for the country, but on the other hand, the continued growth of foreign exchange reserves and the pressure of appreciation to reduce the textile enterprise's price competitiveness has become the object of trade protectionism.

We can not control the increasingly hostile international environment, but we need to change the growth mode and competition mode of China's textile industry, and appropriately open the Chinese market, including the consumer goods market, especially for developing countries and underdeveloped countries to open up the market, strengthen investment in foreign investment and service technology, and increase imports of raw materials, energy, advanced technology and equipment, including the import of complementary consumer goods, and advocate mutual benefit, tolerance and common development.

The dilemma and solution of China's textile industry

Industrial optimization and social upgrading parallel

With the rapid development of China's economy, the labor cost of China is higher than that of the undeveloped countries and the developing countries of the same level.

On the other hand, most of the textile and garment workers in the coastal areas come from the mainland and rural areas. Their living expenses are rising, but the income of manufacturing workers is not synchronized with the growth of GDP.

On the one hand, international buyers and business giants implement price cutting violence. On the other hand, the hypocritical landmarks list implements high labor standards, squeezing profit margins of Chinese spinning and weaving enterprises.

Recruitment difficulties and employment difficulties exist at the same time, the survival of workers and the survival of enterprises are equally worrying.

China's textile industry has begun to pform its concept and take the lead in implementing decent work and social responsibility as a long-term strategy. The promotion and implementation of the CSC9000T management system will not only go against economic upgrading and social upgrading.

In the post crisis practice, some excellent enterprises that vigorously implement corporate social responsibility are far superior to those in the industry in the "cost trap".

The goal of sustainable development points to a new path.

The issue of sustainable development is due to the dilemma of development: short-term and long-term, equity (the same generation and the next generation) and efficiency, economic development and social harmony.

Cleaner production and environmental low carbon are an important binding goal of the textile industry. The goal of low-carbon is not to raise carbon efficiency but to increase carbon efficiency. At the same time, increasing carbon sinks can not ignore the global division of labor leading to differences in carbon emissions, but also through the implementation of low-carbon technologies, low-carbon processes, low carbon products, low carbon circulation, low carbon consumption and low carbon lifestyle.

The goal of sustainable development is to show the new route of textile industry development: the trend of green, clean and low carbon consumption expands the market demand and raises the new level of fashion. Short process and low consumption process has opened up a new path of saving consumption, reducing costs and increasing profits; high performance new fibers and new renewable materials have expanded the application field of textile fiber; new concepts of new technologies and new equipment have promoted the way of human life.

Fashion synergy test synergy

The phenomenon of fashion dilemma and paradox is a market phenomenon, which is due to the multipolarization, diversification, individuation, rheology and universality of the fashion market. It is determined by the characteristics of the long industry chain and long supply chain of the fashion industry, the integration of multi technology and multi industry, the lack of scale effect, the easy out of Yi Jin, the mixture of entities and non entity industries.

Due to the market uncertainty and sensitivity of the post crisis, the majority of Chinese garment enterprises are pforming from production and processing to brand design and marketing.

Therefore, China faces the trend of global fashion consumption and the pformation of the role and structure of China's fashion industry.

We should improve the level of prediction, planning, design and marketing of fashion brands, introduce flexible equipment and supply chain management system, promote digital technology, strengthen the ability to respond quickly to the market, strengthen the strategic alliance of integration, construction and cooperation of industrial chain.