Along The Way To Promote The Growth Of Textile Enterprises To International Enterprises

What does "one belt and one road" mean for textile industry?

Silk is a symbol of ancient culture in China. The Silk Road, which is rising by trade, is a link between China and Asian and European countries. It has become a link between ancient China and Eurasian countries in cultural and trade exchanges.

It has played an irreplaceable role in the road of historical progress.

In March this year, the national development and Reform Commission, the Ministry of foreign affairs and the Ministry of Commerce jointly issued the vision and action to promote the construction of the Silk Road Economic Belt and the maritime Silk Road in twenty-first Century.

The strategy is officially launched.

Today, around the government's policy of building the "Silk Road Economic Belt" and "twenty-first Century Maritime Silk Road", the new "Silk Road" is spreading smoothly on the world political and economic map, and is looking forward to further writing.

The textile industry has also embarked on the "one belt and one road" approach, and is ready to rush its horse racing.

For the textile industry, what can "one belt and one road" bring to the industry? Liu Yaozhong, deputy director of the Ministry of trade and investment promotion of the China Council for the promotion of international trade, believes that the "one belt and one way" will effectively reduce our country.

The cost and political risk in the layout of neighboring countries can also tap more trade potential and create a favorable environment for the internationalization of enterprises.

Where is the way of "one belt and one road"?

At present, "one belt and one road" is hot, whether it is in the TV media or network news, or in the development plans of various enterprises in different regions.

Until the beginning of this year, the vision and action of promoting the construction of the Silk Road Economic Belt and the maritime Silk Road in twenty-first Century issued a clear outline.

The proposal and promotion of "one belt and one road" undoubtedly has great economic and political strategic considerations, so for China's textile industry, especially for many.

For enterprises, what they most want to explore is a question in the final analysis: what can "one belt and one road" bring to the industry and enterprises?

Accelerating and optimizing pnational layout

It has been suggested that the "one belt and one way" is the third reform and opening up after the special economic zone and the accession to the WTO. The two time before it was mainly the introduction of capital, and this time it is capital going out to co-ordinate the development of the domestic and "along the way" countries through international capacity cooperation and interconnection.

As domestic production factors, especially human resources, have reached the bottleneck, the capacity accumulated by the domestic textile and garment industry in the past thirty years must take the initiative to resume reasonable pnational allocation according to the principle of regaining the comparative advantage.

In just a few years, Chinese invested enterprises such as Tianhong, Bailong and Huafu have invested nearly 2 million spindles in Vietnam. The excellent enterprises represented by Shenzhou, Dong Du and YOUNGOR are also accelerating the pfer of their clothing orders to ASEAN countries such as Kampuchea and Vietnam.

The "China South Central peninsula" in the "one belt and one way" is the place where China's industrial capital investment is concentrated. The remaining five major economic corridors, including China, Mongolia, Russia, new Eurasian Continental Bridge, China Central Asia West Asia, China Pakistan, Bangladesh, China, India, Burma, etc., especially China, Pakistan, China, India, Burma and China Central Asia also have abundant raw material resources and labor resources needed for the pnational layout of China's textile industry, all of which constitute the potential area for China's outward investment.

In addition to specifying and guiding overseas investment areas, the comprehensive paction costs, capital costs and political risks of China's textile industry will be reduced as the five aspects of the "one belt and one road" core content (i.e. policy communication, facilities interconnection, trade flow, financing and people's hearts interlinked) will be promoted with the will of the country.

The ultimate goal of the global layout of industry is to consolidate market share and raise profit margins, so as to achieve sustained appreciation of industrial capital. "One belt and one road" is just like the east wind, which will help a lot in this process.

Tap the potential of multilateral trade

The "one belt and one way" will speed up the formulation of new trade rules and tap the potential of multilateral trade and expand the consumption market of the textile industry chain and terminal links.

At present, the world is in the era of post WTO trade rules. Bilateral and multilateral regional free trade agreements are in the ascendant.

If we observe the world trade map and the ongoing important FTA negotiations, in a sense, the trade integration in the "one belt and one way" area will effectively break away from the US Pacific Rim partnership agreement TPP and the the Atlantic Europe trade and investment partnership agreement TTIP of the US Europe region.

We can see from the spread of the map that the "one belt and one way" runs through the Eurasian continent, one of which is an active East Asian economic circle, and the other is the developed European economic circle.

The European Union in the north-south line of the Atlantic has a population of about 500 million in 2013, and GDP is US $17 trillion and 400 billion, accounting for 23.3% of the total GDP in the world.

The East and West Economic Zone of the Western Pacific, including China, Japan, Korea and ASEAN, has a population of about 2 billion 150 million, and GDP is 17 trillion and 900 billion US dollars, accounting for 24% of the total GDP in the world.

The two major economic belts account for 37% of the world's population, accounting for 47% of GDP.

There are 65 countries along the "one belt and one road" which cross the two major economic belts, including China, with a population of about 4 billion 400 million and GDP of 21 trillion dollars, accounting for 63% and 29% of the world's total, respectively. The total trade volume accounts for only 1/4 of the world.

China ASEAN free trade area is a paragon.

Since 2010, Chinese textiles have been implemented.

Exports to ASEAN maintained a high growth rate from US $20 billion in 2011 to US $36 billion 700 million in 2014. At the same time, because of two-way tariff preferences, China's textile industry's investment in ASEAN countries has also increased rapidly, and imports of cotton yarn and other products have surged.

The "one belt and one way" will bring more than 60 countries along the line into the vision of the construction free trade area. At present, China ASEAN Free Trade Area upgraded version, China Pakistan free trade area upgraded version, regional comprehensive economic partnership (RCEP), China GCC and China Sri Lanka FTA are all in the process of active negotiation.

The package of free trade agreements in the "one belt and one way" area will not only solve the problem of investment and trade facilitation, but also create an efficient, rules convergent integrated market, which can significantly promote the new growth point of trade, which will have far-reaching implications for the layout of textile industry in the region and the market increments of textile and garment and textile machinery.

It is worth mentioning that "one belt and one road" will also promote the depth and breadth of domestic integration, and accelerate the formation of a truly efficient and unified domestic market as well as the domestic and international market through the integration of pportation, telecommunications, electricity, water conservancy and other infrastructure modernization and customs clearance.

Create an environment for international growth of enterprises

As far as enterprises are concerned, the opportunity of "one belt and one road" is embodied in creating a safe and stable economic geographical environment for the internationalization of enterprises, and providing a variety of higher quality factor resources and their configuration guarantee system.

The safety of foreign investment is always the primary issue for enterprises to "go out".

The measures in the five links will effectively reduce political risk, reduce paction costs, facilitate financing and bring better localized communication and management.

The Chinese government and the governments along the "one belt and one road" jointly support the building of more and more overseas economic and trade cooperation parks and industrial parks, which will also help textile enterprises improve their landing efficiency, reduce investment costs and form industrial agglomeration advantages.

At the same time, with the signing of bilateral investment protection agreements and avoidance of double taxation agreement between China and other countries, the safety and profit pfer of foreign investment in the "one belt and one way" area will be more secure.

More importantly, with the realization of interconnection and large-scale infrastructure modernization, the orderly, rapid and free flow of financial capital, talent, labor, energy, raw materials and products in the region will greatly enhance the potential efficiency of the textile supply chain in the region. Thus, the feasibility of a single Chinese textile enterprise in the vertical integration operation of the industrial chain and the pnational allocation of production capacity in different countries in the region will be greatly enhanced.

Opportunity is valuable, but risk also exists objectively.

The interests of different countries are different, and the geopolitical political and economic situation is also changeable. The grand vision of "one belt and one road" is not wishful thinking and one step at a time. Repeated setbacks and difficulties are real problems. The ultimate success can only be achieved through the win-win development of China and the interests of the countries along the border.

As a people's livelihood basic industry that creates national wealth and solves the problem of mass employment, China's textile and garment industry is less likely to have a conflict in the layout of the "one belt and one road" country. Conditional enterprises should actively pay attention to the latest development of "one belt and one road", seize the low risk investment and market opportunities, give full play to the comparative advantage of cross-border resources and enjoy the dividend policy, so as to realize the growth from local enterprises to international enterprises.