When Will The Fifth Industry Move? Overview Of China'S Textile Industry Migration Path And Industry Development Trend Report

The pfer of the global textile industry can be divided into 6 stages: the modern textile industrial production originated from Britain in the first industrial revolution period, and the United States in the early twentieth Century relay Britain into a new textile manufacturing center. After World War II, the global textile manufacturing center turned to Japan. After 1970s, it gradually pferred to South Korea, China, Taiwan and Hongkong. Then, in 1992, China established the development goal of the socialist market economy and increased its openness. After the accession to the WTO in 2001, foreign trade developed rapidly and successfully became the global textile manufacturing center.

In recent years, due to the advantages of labor cost and other advantages, Southeast Asian countries have begun to undertake some low-end manufacturing capacity in other countries. Textile manufacturing and export trade has increased rapidly, and textile manufacturing centers have shifted to Southeast Asian countries.

From the domestic perspective, the textile industry in the mainland of China is shifting from the eastern region to the central and western regions.

The global textile industry migration process: after many shifts, China is now firmly in the core position of textile manufacturing.

Stage 1: the first industrial revolution pushed Britain into the center of the global textile industry.

With the gradual opening of the first industrial revolution and the gradual replacement of textile production by family workshop, Britain became the first industrialized country to produce textiles.

According to the data of China textile economy, the composite growth rate of textile output in the UK in the 1710-1740 years was 1.4%, and the compound growth rate in 1770-1810 years increased to 8.5%. By nineteenth Century, the export value of cotton textile ingots accounted for 70% of the total global export value.

Industrial production has made the British cotton spinning industry develop at a high speed, and the production of cotton textiles has increased rapidly, thus exporting cotton products to the world. Since then, Britain has become the center of the global textile industry, and the main raw material of the textile industry is cotton.

The textile manufacturing center moved to the United States at the beginning of the 2:20 century.

The industrialized production of cotton textile industry has made the demand for raw material cotton rapidly increase. The United States has made great efforts to develop cotton planting and sweater with abundant land and labor resources, and gradually become the output center of textile materials.

The invention of American cotton gin in 1793 has greatly improved the efficiency of seed cotton processing, and solved the main constraints of cotton production in the United States. Cotton planting industry has developed rapidly, and output and export volume have been greatly improved.

In addition to the rapid rise in the global position of the textile raw material and cotton industry in the United States, the gradual promotion of industrial technology has made the cotton spinning industry in the United States develop rapidly. The number of cotton spindles has increased from 1 million 200 thousand in 1832 to 16 million 100 thousand in 1895.

According to "China Textile Economy", in 1913, the United States accounted for the first time that the proportion of total world cotton textile exceeded that of the United States, and officially replaced the United Kingdom as the global textile manufacturing.

Stage 3: Japan became the new global textile industry center after World War II.

After the end of World War II, the global textile center moved to Japan.

First, with the improvement of economic level and the perfection of labor protection system, the labor cost of the United States has increased substantially. Second, the rise of new industries after World War II has begun to shift the traditional industries such as textiles to the US. Third, at that time, Japan and Germany both accumulated a certain industrial foundation, but Germany's labor force grew faster, so the United States chose to support Japan's textile industry.

Data show that in 1957, Japan's textile exports ranked first in the world, and Japan officially became the new center of global textile industry. At this time, textile was not only cotton, but synthetic fiber technology has been widely applied.

After 4:1970, Asian emerging countries and regions relay Japan to become the global textile industry center.

The reasons for the pfer of Japanese textile industry to overseas are mainly summed up as two points: first, influenced by political factors and protectionism in Europe and America, the rapid development of Japanese textile industry and the export oriented economic characteristics such as post-war Japan have highlighted the contradiction of daily relations. Under the pressure of the United States, Japan has signed a number of agreements to reduce the export of textiles. Second, in the Bretton Woods monetary system, the continued appreciation of the Japanese yen has made Japanese textile's international competitiveness decline in domestic production and exports, but it is conducive to Japanese enterprises to invest overseas.

In the case of declining product cost advantages, Japan began to shift its textile industry overseas, and Japan's textile industry has gradually declined in the global position.

Taking into account the distance advantage, South Korea, China Taiwan and Hongkong, China, which are highly open to the outside world, wide consumption market and low labor cost, have become the best destination for the textile industry. Ever since then, emerging Asian countries and regions have gradually made Japan the center of the global textile industry.

In the period of 5:2001, China became a global textile manufacturing center after joining WTO.

The pfer of textile manufacturing centers at this stage is mainly due to the following: first, the additional restrictions on the overall trade environment, such as the US restrictions on exports of textiles to the United States in Korea, China, Taiwan and related areas in 1986, were lower than 1.7%, 0.8% and 0.5% respectively; the second is that the degree of opening up in China has increased, and the labor cost in the mainland is much lower than that in Korea, Hongkong and Taiwan. A large number of foreign enterprises have begun to invest in coastal areas. Thirdly, in 2001, China joined the WTO, and the trade liberalization process accelerated. In 2005, WTO fully liberalized the quota of textile export quotas and reduced export barriers.

Take the export amount of textile cotton yarn as an example, before and after joining the WTO, the textile export market opened rapidly, and China formally entered the global market of textile industry, making full use of the advantages of labor and market, and gradually becoming the global textile manufacturing center.

National Statistics Bureau chart 6:1998-2018 China Textile - cotton yarn export amount related (unit: billion dollars,%)

After 6:2012 years, the strength of labor force in Southeast Asian countries is highlighted, and China's textile industry is migrating outward.

The development of domestic textile industry is relatively mature at present. The increase of economic level and the decline of the proportion of working age population make it difficult to recruit workers in recent years, the labor cost is rising continuously, and the cost of industrial land is rising, and the environmental protection policy is stricter.

First, the average wage of Chinese manufacturing workers continues to grow, and the profit margins of enterprises have gradually narrowed down. In recent years, with the improvement of wage level, human social security and welfare in China, the cost of human labor has continued to rise, and the low cost advantage of manufacturing industry has gradually disappeared.

In 2017, the average annual wage of Chinese manufacturing workers has increased to 64 thousand and 500 yuan.

In fact, while labor costs are rising, the tightening of domestic environmental policies has also increased the production costs of textile enterprises and further reduced the profit margins of enterprises.

From the gross margin of China's textile industry, the gross margin of the industry has shown a clear downward trend since 2012, indicating that the profit margins of the industry have been narrowed down, and the development of the industry has become increasingly unprofitable.

Second, China's overall wage level is much higher than that of Southeast Asian countries. According to the 2018/2019 global wage report issued by the International Labour Organization, the average wage level in China is much higher than that in Thailand, Vietnam and Kampuchea. In 2017, the average wage in China was about four times that of Vietnam.

That is to say, the low cost of manpower has been the winning weapon of domestic textile enterprises, but now it has gradually become the shackle of the development of the industry, prompting the textile industry to pfer to Vietnam, Kampuchea and African countries with lower labor costs.

Third, Vietnam's textile industry has a strong trade advantage.

Vietnam and other Southeast Asian countries have superior international trade environment, and there are tariff preferences in developed countries such as Europe and the United States. For example, in December 2015, Vietnam and the European Union signed a free trade agreement. The agreement came into effect in 2018. According to the agreement, 99% of tariffs between Vietnam and the EU's two economies will be cancelled after the agreement comes into effect. Vietnam's export to Europe is ushered in a "zero tariff" era.

Cotton import quotas are not limited, and the government strongly encourages the development of textile industry. A series of preferential policies have been drawn up to attract foreign investment in textile enterprises. It has become a popular choice for Chinese textile enterprises to expand their scale and invest abroad.

The Sino US trade war in 2018, since September 24th, the United States imposed tariffs on 200 billion US dollars from China.

A total of 5745 tax products were included in the list, which involved a total of 917 textile industries, involving all kinds of textile yarn, fabric, industrial finished products and some household textiles. The annual export volume of products involved exceeded 4 billion US dollars. Later, it was announced that the original tariff imposed by the US on 200 billion dollars of Chinese products remained at 10% after January 1, 2019, instead of 25% previously announced.

Based on the above analysis, the strength of the domestic textile industry is disappearing, the strength of the labor force in Southeast Asian countries is prominent, and the textile industry has a strong trade advantage. Before 2012, some low value-added businesses in China's textile industry began to accelerate to pfer to countries dominated by Southeast Asia.

Summary of global textile industry pfer process

On the whole, the pfer of global textile industry can be divided into 6 stages: modern textile industrial production originated from Britain in the first industrial revolution period, the United States in the early twentieth Century relay Britain to become a new textile manufacturing center, after World War II, the global textile manufacturing center turned to Japan, and then gradually pferred to South Korea, China, Taiwan and Hongkong area after 1970s. Then, in 1992, China established the development goal of the socialist market economy and increased its openness. After the accession to the WTO in 2001, foreign trade developed rapidly and successfully became the global textile manufacturing center.

In recent years, due to the advantages of labor cost and other advantages, Southeast Asian countries have begun to undertake some low-end manufacturing capacity in other countries. Textile manufacturing and export trade has increased rapidly, and textile manufacturing centers have shifted to Southeast Asian countries.

Path analysis of textile industry migration in mainland China

The state attaches great importance to the relocation of the textile industry.

Textile industry is the traditional pillar industry and important livelihood industry of our national economy. It is also an obvious industry with international competitive advantages.

Although the textile industry is gradually moving to Southeast Asia, facing the huge demand market in China, the relocation of the textile industry is also out of date.

Therefore, the migration process of the textile industry must go hand in hand at home and abroad.

The structural contradictions and problems that China's textile industry has accumulated for a long time are becoming increasingly prominent. The concentration of China's textile industry is aggravated by the constraints of the eastern coastal areas, the cost is rising rapidly and the competitive advantage is weakened, while the comparative advantages of the central and western regions have not yet been fully realized.

From the "adjustment and revitalization plan of textile industry" issued by the CPC Central Committee and the State Council to the Ministry of Industry issued the "guiding opinions on advancing the textile industry pfer", the state attaches great importance to the textile industry pfer, promotes the textile structure adjustment and optimizes the industrial layout, and the relocation of the domestic textile industry is imperative.

Transfer of textile industry to central, Western and Northeast China

Compared with the eastern region, the central and western regions and Northeast China have comparative advantages in land and labor resources, but with the development of the national economy, this advantage is also gradually weakening.

Therefore, how to give full play to the advantages of resources in the central and western regions and the advantages of textile enterprises in developed areas effectively promote the pfer of industries has become a concern of the industry.

Policy guidance is still playing a major role in industrial pfer. The Ministry of industry and Commerce issued the guiding opinions on the promotion of the textile industry pfer in the guidance of the Ministry of industry and commerce, and made a guiding direction for the migration of the textile industry. "Adjusting measures to local conditions" is an important factor in the migration path of the textile industry. By sorting out and summarizing the advantages of the eastern, central, Western and northeast regions, the paper summarizes the following directions:

Transferring the textile industry in the domestic park mode

Under the background of the adjustment of coastal cities' industrial structure and the improvement of investment environment in the central and western regions, the Ministry of industry and Commerce jointly established the national textile industrial pfer pilot park with the China Textile Industry Federation. The purpose is to integrate resources advantages, guide the orderly pfer of textile industry, and achieve the adjustment of industrial structure and upgrading of industrial parks.

By the end of 2018, China had 36 pilot sites for the pfer of textile industry nationwide, and 8 were selected as the national textile industry pfer demonstration park.

With the adjustment of the strategic structure of China's textile industry, many regions will undertake the pfer of textile industry as an important way to develop local economy, build textile and garment industrial parks, and increase investment attraction, but not all industrial parks successfully undertake the textile industry.

To explore the 8 China's textile industry pfer demonstration park, it is found that the pfer demonstration park has its unique advantages: Overseas pition advantage, raw material advantage, industrial foundation advantage, labor force advantage and intelligent advantage.

From the distribution characteristics of these 36 textile industrial pfer pilot parks, except for two in Jiangsu, the rest are distributed in the central and western regions. The trend of textile industry pferring from coast to central and western regions characterized by labor intensive indicates the deepening of textile restructuring.

Through actively exploring the whole "migration cultivation" of the coastal textile industrial cluster and building industrial parks with the central and western regions, the industrial pfer mode of industry driving urban construction and promoting the development of the park with urbanization has a leading and exemplary role.

Development trend of textile industry

Development trend of global textile industry: continue to migrate to Southeast Asia

China's textile industry boom is in the downward process.

At this time, some countries in Southeast Asia and some African countries showed obvious advantages at the cost of manpower. China's textile industry leader Lu Tai A, Luen Fat shares, Baron East, Huafu fashion, Tianhong textile, clothing manufacturing leader Shenzhou International and hosiery leader Sheng Sheng group and other companies are expanding production capacity in these areas. Some enterprises' overseas capacity accounts for nearly 40%, and is still actively layout.

It can be seen that the layout of the textile industry related enterprises in Southeast Asia and other overseas areas is the general trend. The global textile manufacturing center will continue to migrate to overseas areas such as Southeast Asia.

Development trend of textile industry in mainland China: continue to shift to the central and Western Regions

In the mainland of China, the upgrading of textile industry to the central and western regions has become the main theme.

Whether in eastern enterprises, "going abroad" to invest overseas, or pferring part of their capacity to the central and western regions, investment is accompanied by many challenges such as eliminating backward, upgrading and importing new equipment.

The Midwest should not blindly expand in the process of undertaking pfer and building new enterprises and parks; the Midwest should pay special attention to the extension of the eastern industrial chain in the process of undertaking the pfer, pay attention to docking with the East, and localities should determine the positioning of the textile industry according to the economic development of the region, and combine the advantages and characteristics of the localities in location, raw material resources, labor force and industrial foundation, so as to choose a differentiated dislocation development strategy.