The Textile Industry Of WTO Game: We Can No Longer Avoid The Trap Problem.

China

China's textile industry is indeed in the trap of international division of labor. We have avoided the way of technology, but now we can no longer avoid the trap problem.

10 years ago, the most competitive industry, the industry now facing.

Low prices of Chinese textiles have always been less competitive, but this year the killer has come up with a more ruthless killer.

Pakistan, Bangladesh, Turkey and other countries offer 10% less than China, and many Chinese textile companies have to give up.

The overall competitiveness of China's textile industry is weakening, especially cotton products.

At the same time, the domestic cotton textile industry chain, from cotton growers, cotton purchasers to cotton processing enterprises, cotton textile enterprises, and then to cotton finished products enterprises appear not to make money.

All aspects of the whole industry chain are very sad, and there is hardly any shelter.

Unlike cotton spinning, the chemical fiber industry is experiencing high growth.

After joining the WTO, the chemical fiber industry grew rapidly, and its output increased from 6 million 940 thousand tons in 2000 to 30 million 890 thousand tons in 2010. China has become the world's largest producer of chemical fiber, accounting for more than 60% of the world's total.

In 2010, the growth rate of China's chemical fiber industry has been growing rapidly.

The experience of cotton spinning has prompted the chemical fiber industry to prepare for industrial upgrading and increase the risk resistance capability of enterprises. But what choices will the chemical fiber giants make?

Every morning at 8 o'clock, in front of the trading counter on the first floor of Sheng Hong group headquarters in Shengze Town, Wujiang City, Zhejiang, it will be crowded with buyers of chemical fiber raw materials from the surrounding area.

On the electronic screen, the purchase price of POY (pre oriented silk), FDY (full stretch yarn) and DTY (polyester low elastic yarn) will be displayed on the electronic screen.

Due to the large scale and high market share of Sheng silk produced by Sheng Hong, the price announced by Sheng Hong every day has become the vane of China's chemical fiber market.

Shengze town is just more than 30 kilometers away from the Zhen Ze Kai Gong Village of Fei Xiaotong, a famous sociologist in 1938. It is also a famous town of Chinese textile industry since ancient times.

Today, the ancient silk producing area has become the export center of the world textile industry.

There are nearly 2000 textile factories in Shengze and nearly 6000 textile trade companies.

Today, chemical fiber has replaced silk as an important raw material for the textile industry.

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According to the China Textile Industry Association, in 2001, a technological revolution in the world's chemical fiber industry provided an opportunity for China's private enterprises to enter the chemical fiber industry.

In the past, the previous sliced melt spinning was replaced by a melt direct spinning process with shorter process and lower cost.

Many private-owned enterprises have seized the opportunity of technological upgrading, investing in large quantities in one step and buying the most advanced equipment in the world to enter the field of chemical fiber production.

Soon replaced the state-owned chemical fiber enterprises, becoming the market leader.

Sheng Hong group, founded in 1992, started printing and dyeing at the beginning. At the end of 2002, chairman Miu Hangen decided to launch a 600 thousand ton polyester melt direct spinning project, and focused on the production of microfiber in the high-end market, and soon became the market leader of microfiber, and produced 85 thousand tons in 2006, accounting for 38% of the domestic market share.

"A factory like Sheng Hong can reach polyester production capacity in a market in Korea.

Why China has such a large capacity consumption capacity is because China itself has a large domestic demand market, especially in recent years, the balance of domestic trade and foreign trade list is emerging year by year.

Sheng Hong Group Marketing minister Xu Guangyu said.

Not only Sheng Hong, but also in Shengze, who shared the feast of joining the WTO, the Hengli Group, which entered the chemical fiber field in 2003, also saw the huge growth potential of the chemical fiber industry. Chairman Chen Jianhua, when he entered the industry, heavily imported almost all the equipment needed for chemical fiber production from Germany.

"Everything from the past to the back is imported. The German direct spinning polyester unit of gemma company, the German Bama textile machine and the Japanese TMT machine are all imported and have no domestic products.

At that time, our employees knew that even fork lifts were imported, and even the stainless steel baffle between the equipment was imported.

Meng Hongjun, manager of Sales Department of Hengli Group, who worked for many years in state-owned textile enterprises, also thought Chen Jianhua was importing the most advanced production equipment.

With the introduction of the most advanced production equipment, Hengli can go directly to less competitive ones.

Avoidance techniques

There are two ways to upgrade the chemical fiber industry. First, Japan, South Korea, the United States and Europe have become leading and monopolist in the world of high performance fiber and biomass materials in the field of high-performance fiber and biomass materials. They are also further strengthening this advantage through the adjustment of industrial structure and integration of resources. Two, the Taiwan mode extends along the industrial chain to the upstream and downstream.

The reality of the market environment has made Chinese chemical fiber enterprises choose the latter on the road of evolution.

The upstream of the polyester fiber is polyester soluble PTA, then PX, while PX goes up to oil refining, and downstream is weaving, dyeing and finishing and clothing.

The industrial chain of chemical fiber is very long, from oil exploitation to ready-made garments.

The rules on the industrial chain are more upstream, and the greater the power of discourse.

At present, Hengli's upstream suppliers are Samsung, Taiwan East Exhibition and MITSUBISHI, Japan.

"We can only talk to them, you love to buy or not, and the world can guarantee quality and quantity."

Meng Hongjun said.

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Hengli chose to develop upstream chemical raw materials, mainly focusing on the cost advantages formed by matching upstream and downstream. Meanwhile, the control of raw materials can also increase the ability to resist risks.

At present, Sheng Hong Group has invested 1 million 500 thousand tons of PTA (terephthalic acid) project in Jiangsu Lianyungang [4.77 -3.05% Stock Research Institute this year.

The first phase of the 600 thousand tons will be launched in 2013.

Hengli's pace has been bigger, and it has invested 25 billion yuan in Lingang Industrial Zone, Changxing Island, Dalian. Hengli petrochemical industrial base project has been started in two phases.

The project will be the largest PTA project in the world.

The Taiwan plastics industry Limited by Share Ltd, a subsidiary of Formosa Plastics Group, is the largest civilian filament enterprise in the world. It owns the whole industrial chain that integrates upstream and downstream industries from oil refining to chemical raw material production to chemical fiber production.

Hengli has always been a model for South Asia, but it can not replicate its pattern. The biggest obstacle is that Taiwan enterprises can invest in oil refining, which is almost impossible in mainland China.

Textile enterprises can increase the anti risk ability of the industrial chain, but it avoids the technical problems.

The industry chain itself is also a zero sum game. If someone wins, someone will lose.

Every company knows that technology is a way to win, but sometimes it is impossible to achieve it with one's own strength.

A textile industry insider told this magazine: "ten years after China's accession to the WTO, China's textile technology was brought, and no independent technology was developed.

Which technologies and processes used by Chinese textile giants of quality and scale are China's own? No! "

The high-end products in the fiber include carbon fiber and aramid fiber. It is called "two benzoyl benzoyl two amine". It is a new high-tech synthetic fiber with high strength, high temperature resistance, acid resistance, alkali resistance and light weight.

This is the direction for all chemical fiber enterprises in China to know about the future development of chemical fiber products, but China itself cannot develop it.

Up to now, most of the two kinds of fibers in China are imported.

Take aramid as an example, an old Chinese state-owned enterprise has been developed for more than 6 years, but the product is still in the small test stage.

According to an engineer who ranked the top ten chemical fiber enterprises in the country, he told reporters that the factory not only imported large equipment abroad, but also had to buy some antistatic oil additives and other small parts from Japan.

Take the spinneret used for producing polyester filament as an example, it is a steel plate full of small eyes, with thin eyes and loose wires. Seemingly simple requirements, China's mechanical processing technology can not reach.

"We can build our own spaceships. Why can't a small eye do well? But this is obviously not a problem for textile enterprises and industries."

Duan Xiaoping, President of China Fiber Chemical Industry Association, [6.69 -2.48% shares of China Chemical Industry Association, analyzed the reason for this gap, that is, profit driven by capital.

In the case of cost and scale that can ensure investment returns, enterprises are obviously more willing to use funds to expand their scale. The developed countries have obvious advantages in the development of new products, and objectively become the target of domestic enterprises' imitation, resulting in insufficient domestic enterprises' R & D motivation. Under the condition of long-term passive R & D, enterprises are lack of sense of direction and R & D capability.

And the engineer believes that China's textile industry is indeed in the trap of international division of labor. We have avoided the way of technology, but now we can no longer avoid the trap problem. At present, the world's cotton textile production capacity has begun to pfer to India, Pakistan, Vietnam, Indonesia and other countries.

"Chemical fiber industry every 20 years a cycle.

It's been 10 years now. What will China do in the next 10 years? "