Textile And Clothing Industry: Golden Ten Years Ending

Zhang Yu has recently set up a biotechnology company, which has been in Guangzhou for 17 years. Clothing industry The "old man" is planning to become another "new person" in the other area.

　　 He confessed that this is the most hesitant time.

In 1994, Zhang Yu came to Guangzhou from Hongkong to engage in textile and garment processing business.

In 2001, China joined the WTO (World Trade Organization), and Zhang Yu also owned his own garment factory in Guangzhou. After several years, I am busy making money, everything is so beautiful.

Until 2009. Affected by the 2008 financial crisis, the growth of China's textile and clothing exports began to decline, together with the "labor shortage" in the Pearl River Delta's Yangtze River Delta. Zhang Yu and his colleagues suffered a lot. They struggled to maintain and moved the factory to the mainland, but the days were still more and more difficult. "I really am not optimistic about this industry, and the friends who earn money around the textile industry are also like this. If we still want to carry on 2008, most people are not confident now. Zhang Yu said.

In the tenth year of China's accession to the WTO, the relatively liberalized textile and garment industry is facing the biggest test.

　 The most uncommon years and months of one's life

Zhang Yu is from Hongkong. In the 80s of last century, the textile and garment industry in Hongkong is like China today.

At the age of 18, Zhang Yu started working in a clothing company in Hongkong. "I was only a little attendant at that time." Maybe he had a gift for business, and only four years there, Zhang Yu jumped out to do it himself. "When you work, you accumulate lots of resources, and youthful courage, so you jump out and put up a sign to do it yourself. Business is good and bad, but there are some primitive accumulation, and then began to speculation, want to make quick money.

In those two years, the industry in Hongkong was just as bad as the stock market was crazy for some time, and the situation was somewhat similar to that of the mainland today. No one was willing to do business.

After 30 years of age, the crisis in the Persian Gulf has been lost for several years. "After the stock market came down, no one even went to do the industry. At that time, many textile and garment factories began to shift." Zhang Yu said, "I was forced out at that time."

In 1994, Zhang Yu came to Guangzhou. He did not immediately buy land to build a factory, but rented a factory, recruited some workers, and processed it.

After China's reform and opening up, the first entry of non-state-owned capital is the textile and garment industry. From 80s to 90s of last century, the textile and weaving industry developed in the eastern coastal area. "The first reason is that the threshold for entry is low and investment is less; Second People's lives have this demand; third, the most difficult part of the state-owned industry at that time was textiles." Sun Huaibin, director of Industry Department of China Textile Industry Association, said. "In those days, policies were helping businesses and workers were more obedient." Zhang Yu recalled the first time.

At that time, the business was really good. "People in the same industry are very young. I am old at the age of 30." Zhang Yu said, "at that time, I mainly processed Hongkong's list. There are quotas for those exporting countries. At that time, the provinces with the largest quotas were Guangzhou, and I know a lot of quotas.

In retrospect, Zhang Yu thought he had missed a good opportunity at that time. "In 1993 and 1994, many people began to do domestic sales, creating a brand to do it themselves. For the domestic market Very popular. Perhaps the economy was just beginning to start, and the people were required to have food and clothing. The well made factories could deliver 10 thousand to 20 thousand pieces a day. A dress makes 10 yuan. How much do you think? " "At that time, it was a factory owned by state-owned enterprises, and the rent was very cheap. At that time, I had four production lines, and 20 thousand ~3 a year, equivalent to no cost. "

　 In 2000, the non-state-owned economy of textile industry accounted for more than 90%, and became the main body of the industry.

WTO is coming.

Zhang Yu's real determination to buy land in Guangzhou was built in 2000.

"We heard the news that China might join the WTO in 2001, plus China's bid for the 2008 Olympic Games. So there was a judgement at that time that China's economy should be stable during this period. Zhang Yu now recalls that his judgment was very accurate. "Of course, I did not predict the financial crisis of 2008." He jokes.

Before the Uruguay round of tariff and trade negotiations in 1994, textiles had been separated from the WTO system in the multilateral trade of international industrial goods and accepted the adjustment of the MFA mechanism contrary to the WTO principle. MFA is a discriminatory agreement restricting imports from developed countries or automatic restrictions on exports by developing countries. China formally joined in January 18, 1984. "In those years, China's textile industry has been suppressed by this mechanism." Sun Huaibin said.

In 1994, textile and apparel finally returned to the framework of WTO, and reached the agreement on textiles and clothing (ATC), which stipulates that the ten years from 1995 will be divided into four stages: cancellation among WTO members. textile And clothing quota restrictions, to achieve free trade. January 1, 2005 is the final stage, and all quota restrictions have been abolished.

Sun Huaibin said: "one of the hidden problems is that China must become a member of WTO to truly integrate into the liberalization of textile and clothing trade." "In 2000, I did two things." Zhang Yu is still fresh in his memory, "the first is to decide to buy land for building factories; the second is to buy some pavements and start selling domestically."

He said, "because everyone knew that when we joined the WTO, we were going to do business with foreigners. The original rental plant is small and broken. People will see that the scale and environment of your factory will not be able to pass. These things have happened in Hongkong, so this decision has been made.

Looking back to the days when I first joined the WTO, Zhang Yu said, "in those days, a lot of areas in China once built a factory fever. At that time, 100 thousand yuan would open a small factory. For a time, our workers were very unstable. "

　　 But it was just a little episode, and it did not cause any obstacle to us.

The "report card" of China's entry into the world in 2002 witnessed this craziness. "Remember that textile exports broke through 60 billion yuan mark that year, a record high export history." Sun Huaibin recalls.

Best scenery

Along the way, Zhang Yu felt the best was from 2005 to 2007. He said: "when I started renting, I only had 4 production lines, which expanded to 12 in 2003. Well, in those three years, we not only have 12 production lines, but also lots of lists."

In 2005, it was a landmark year for the textile and garment industry. People felt differently, but people in it were deeply impressed.

According to ATC, the quota era of global textile and clothing should be concluded. China's textile industry maintained an accelerated growth momentum in the first half of the "post quota era". This has caused panic in the EU industry and strongly demands restrictions on some Chinese textiles.

In February 23, 2005, the EU said it might adopt a "special safeguard mechanism" for China's textile exports. After that, a series of "special safeguard investigations" aimed at Chinese textiles have been launched, and trade disputes between China and Europe have been upgraded. "At that time, the problem was raised to a political level." Sun Huaibin said, "finally, we and the United States and the European Union have to renegotiate again and set up quotas for some of the products. There are three years in the US and Europe."

But this event also made the Chinese realize that China's accession to the WTO has given China a huge trade growth space, but the so-called "trade liberalization" can not be "completely liberalized".

　 Another episode of "interlude" originated in China in 2007.

The introduction of the new labor law is a great challenge to the traditional textile and garment industry which relies on the low labor cost. "In one day, I have said the same content nine times in a day, from morning till evening, to tell workers about the new labor law." Zhang Yu said, "at that time, I just let the workers understand what the new labor law is and what rights they have. When the workers came out to work or wanted to make money, there was not even anyone left at that time.

Soon, the financial crisis swept over in 2008. Although Chang Yu has always emphasized his luck, it may be related to the fact that he stopped most of the export business early. Zhang Yu recalls that when the exchange rate of the yuan against the US dollar was still over 7, he seldom picked up the bill. "Because we predict that the exchange rate will continue to rise, it must have been played by everyone." Zhang Yu has shifted his energy to the list of domestic brands. "In 2008, the crisis came, and domestic sales were on fire. I just caught up." He said: "the crisis was very miserable that year, but we still have the mentality to carry it."

　 Switch

In the middle of 2009, "labor shortage" appeared in the Pearl River Delta and the Yangtze River Delta. Zhang Yu and his ancestors did one thing at a time, that is, chasing workers to run factories in the mainland.

He said, "I chose Huangshi, Jiangxi, away from Guangdong. About 50~60 people's factory, I used to be a leader in charge there, his old home is right there. " Facts proved that this measure failed, and the factory was closed in half a year. "I found that they used my factory to do private work and finished my work. And in the local plant, we can only use local people to manage, this kind of thing is hard to avoid.

In 2010, he also went to some provinces in the mainland to prepare for the project investment, and finally failed for various reasons.

Zhang Yu, who has been in the industry for more than 30 years, suddenly sprung up the idea of "leaving". "Leaving this industry, I really do not look at this industry, and the friends who earn money around the textile industry are also like this. If we still want to carry it in 2008, most people are not optimistic now."

This year, scholars began to speculate that China's "Lewis turning point" began to emerge, that is, labor surplus to labor shortage transition. This "point" is considered to be the biggest turning point of China's economy in the next ten years, and it will redefine China's growth pattern.

With this change, domestic demand has become the next hot spot. Creating brand as domestic sales has become the choice of many people. But Zhang Yu insisted that the best chance to create a brand was in the early 90s of last century. "The channel has been occupied by the first people to do it." He said.

Zhang Yu's factory now has about 150 people. He recently rejected two groups of workers who wanted to job hopping. "Not so many. What do you want so many people to do?" He said.

　 Now, it's really time for everyone to think about "how to do".