Industry Perspective: Mergers And Acquisitions Will Become The Main Theme.

In recent two years, textile enterprises have shown signs of weakness in production due to various factors leading to rising costs and reduced demand.

This makes the textile industry more urgent for industrial restructuring and upgrading.

Therefore, in the "12th Five-Year" period, the textile industry should adopt appropriate strategies to accelerate the pace of mergers and acquisitions that have already been opened up.

Annexation and reorganization is to eliminate backward production capacity.

In fact, the merger and reorganization of the textile industry has never stopped.

In recent two years, textile enterprises have shown signs of weakness in production due to various factors leading to rising costs and reduced demand.

This makes the textile industry more urgent for industrial restructuring and upgrading.

Therefore, the textile industry should adopt appropriate strategies to speed up the "12th Five-Year" period.

Private enterprises will continue to play the leading role.

Since the reform and opening up, the textile industry has been ranked the highest in the domestic market.

In the meantime, private enterprises continue to enter the textile industry, while the proportion of state-owned enterprises is declining.

According to statistics, in the textile enterprises with the top 500 of the 2011 manufacturing enterprises in China, the number of private enterprises exceeds that of state-owned enterprises.

Most mergers and acquisitions with other industries are dominated by state-owned enterprises, and private enterprises play an important role in mergers and acquisitions of textile industry.

So far, there have been many cases of mergers and acquisitions of state-owned enterprises by state-owned enterprises.

With the gradual implementation of the "new 36 item" implementation of the State Council's opinions and rules and the further improvement of the domestic market environment, it can be expected that during the "12th Five-Year" period, the pattern of "leading role" by the private enterprises in the textile industry is bound to continue.

In addition, private enterprises and small and medium-sized enterprises account for a large proportion of the textile enterprises in China.

Introducing foreign capital is an important strategy.

Whether it is "imported" or "going out", the textile industry is one of the most internationalized industries in China.

China's textile industry has achieved rapid development through undertaking international industrial pfer. China has jumped to be a big textile country, and the textile industry's production capacity and technology level have been greatly improved. However, compared with developed countries, China's textile industry has low added value, weak technological independent innovation ability, lack of independent brands and international marketing network.

Therefore, in the "12th Five-Year" period, the continued opening of foreign investment in the high-end industry is still an important strategic choice for the future development of the textile industry.

In fact, foreign-funded enterprises have always attached great importance to the continuous upgrading of the huge Chinese market and domestic textile consumption. Many well-known brands of foreign-funded enterprises are interested in direct injection or acquisition of Chinese local garment factories.

The entry of foreign textile enterprises, especially the entry of high-end brands, will undoubtedly bring inevitable pressure to China's textile enterprises, but at the same time, it will accelerate the pformation and upgrading of domestic textile enterprises.

Therefore, China's textile industry must make full use of the rules and timing of international industrial pfer, acquire foreign advanced production technology, technology and management, and strategic resources needed for the development of textile industry through cross-border mergers and acquisitions, and promote China's textile industry to enhance its international competitiveness better and faster.

Giving full play to regional advantages

China is a big textile country in the world. The domestic production capacity and consumption market of textiles are very huge.

Therefore, during the "12th Five-Year" period, the domestic market should be considered when promoting the merger and reorganization and optimizing the geographical layout of the production system.

At present, the Interregional Industry of China's textile industry

Therefore, in the adjustment of industrial structure, the eastern, central and western regions should give full play to their respective advantages to build a nationwide textile production and marketing system.

That is to say, the eastern region should give full play to the advantages of talents, market and information, locate in the high-end manufacturing industry of textile and clothing, and focus on developing the producer services and textile headquarters base of textile and clothing, such as R & D, brand marketing, marketing and so on, while the central and western regions with the advantages of location, labor and resources will focus on cotton textile, linen textile, knitting, clothing, home textiles, industrial textiles and other special industries.

Effective borrowing of national policies

In recent years, the state has attached great importance to the merger and reorganization of key industries.

In 2009, "merger and reorganization" is an important part in the ten major industrial revitalization plans issued to fight against the financial crisis.

In the "textile industry adjustment and revitalization plan", the goal of merger and reorganization of textile industry is also specified.

All policies have effectively promoted the merger and reorganization of the textile industry.

Premier Wen Jiabao chaired a executive meeting of the State Council on June 30, 2010 to study and promote the merger and reorganization of enterprises.

The meeting proposed to eliminate the institutional obstacles to merger and reorganization.

We should abolish various provisions that are not conducive to merger and reorganization of enterprises and impede fair competition.

Then, in July 2nd, the State Ministry of industry and Commerce promulgated the "guiding opinions on promoting the pfer of textile industry", setting a framework for the merger and reorganization of the textile industry.

The guiding opinions clearly put forward that we should support the merger and reorganization of the Eastern Textile Enterprises with the Midwest and Northeast China, and guide the textile industry to shift to high-end fields and accelerate the pace of industrial upgrading.

There is no doubt that all these policies "dividends" are effective policy tools to promote the merger and reorganization of the textile industry during the "12th Five-Year" period.