Henan Textile Industry Has Great Potential To Stimulate Domestic Demand

Textile industry is one of the traditional advantageous industries and economic pillar industries in Henan Province, but affected by a series of economic factors, such as the financial crisis, the continuous appreciation of RMB, the reduction of export tax rebate rate, the increase of raw materials and energy, the increase of wages and social security funds and so on, the textile industry in the whole province is facing an unprecedented grim situation.

How can Henan's textile industry break through the current difficulties?

Facing the severe test, the latest data released by the Henan investigation team of the National Bureau of statistics show that at present, the total number of spindles in the province has reached 14 million 200 thousand, accounting for 14.2% of the total number of spindles in the whole country, and the scale is third in the whole country.

In 2008, 1194 Textile Enterprises above Designated Size in Henan Province, producing 2 million 500 thousand tons of yarn per year, ranked the highest in the country.

In 2007, the textile industry in Henan had a good production and operation situation, achieving a profit of 8 billion 10 million yuan a year, an increase of 88.5% over the same period last year.

But since 2008, the production and operation situation of the textile industry has changed. Although the output has increased, the economic efficiency has begun to decline sharply, and the whole industry is facing a severe test.

In the province's textile enterprises above Designated Size, there were 124 loss making enterprises, an increase of 8.77% over the previous year, with a deficit of 10.39%, which was 10.15 percentage points higher than the national deficit.

Due to various factors, the head of the investigation team said that from a macro perspective, the implementation of the state regulation and control policy and the promulgation of the new labor contract law had a great impact on the production and operation of textile enterprises.

The tightening policy of RMB reserve ratio and deposit and loan interest rate also restricts the development of enterprises.

In 2007, the vast majority of 1194 Textile Enterprises above the province lack financial support and business difficulties.

The appreciation of the renminbi and the reduction of the export tax rebate rate also make export enterprises in trouble.

In 2008, the economic crisis that affected the world first spread to the textile industry. After the US economic recession, natural trade protection measures were naturally increased, thereby weakening the competitiveness of Chinese textiles in the world. Data show that the overall profit margin of China's textile industry is 3.9%, coupled with the reduction of export tax rebates, and the appreciation of the renminbi has made textile enterprises less profitable.

According to the responsible person, the power to pull economic growth is generally recognized as the "three carriages" - export, investment and consumption. In recent years, China's economic growth has been mainly dependent on exports and investment. The dependence on external demand for the economy has been as high as 70%. Under the background of the global economic recession and the impeded export growth, it has become realistic and urgent to start the domestic market demand to seek new impetus to economic growth.

According to relevant information, the per capita textile consumption in China's urban areas has increased from 7.5 kg in 2000 to 14.6 kg in 2007, and the proportion of textile industry's domestic sales has increased from 60% in 2000 to 70% at present.

In contrast, the per capita consumption level in developed countries is 30 to 40 kg, which is more than two times the current level in China.

This means that the market potential of China's textile domestic demand is still huge, and the total consumption of the 1 billion 300 million population determines that the domestic demand market must rely on the domestic textile industry. Henan is the largest population province in the country, and its energy can be imagined by increasing consumption level and increasing demand.

He said that Henan is located in the middle part of the East and West, which is a pitional area between the East and the West. It is also an important point for the coastal economy to shift to the West.

With the adjustment of economic structure, the development of China's textile industry is shifting from the eastern coast to the central and western regions. In this pfer, Henan's important position is very prominent, so we must make full use of the advantages of many parties.

In order to achieve the goal of strong textile Province, Henan textile industry must solve a series of problems in its development. We should focus on enhancing innovation capability, increase the hard power and soft power of the industry, improve the contribution rate of science and technology and independent brands, and accumulate energy and seek development in the throes of global economic downturn and economic crisis.

Wang Xiaonan: editor in charge