China And Romania Textile Industry Reach Cooperation Agreement

In May 13th, the delegation of the China Textile Association, headed by Sun Ruizhe, President of China Textile Industry Federation, held talks with representatives of Romania textile industry in Bucharest, capital of Romania.

Yang Jizhao, vice president of China Textile Association, vice president of China Knitting Industry Association, executive vice president of China Textile Federation, Xu Yingxin, vice chairman of China Textile Association, director of industry department, Sun Huaibin, deputy director general of China Textile Federation, Yuan Hongping, director of Foreign Affairs Office, Feng Dehu, president of China Textile Construction Planning Institute, Zhu Beina, President of China Cotton Textile Industry Association, Chen Zhihua, director of China dyeing and printing industry association, director of Human Resources Department of China Textile Federation, China Textile Machinery Association, vice chairman of China Textile Machinery Association, director of Information Technology Department of China Textile Association, director and entrepreneur of vice director of China Textile union Productivity Promotion Association, attended the meeting.

At the meeting, the representatives of both sides actively explored bilateral cooperation opportunities through the introduction of the development of their respective textile industries.

Sun Ruizhe, President of China Textile Industry Federation, and MiHai Pasculescu, President of Romania textile and Garment Leather Association, signed the cooperation agreement between China Textile Industry Federation and Romania textile, clothing, footwear, hats and leather products industry association.

Romania market scanning

The representative of Romania textile and Garment Leather Association MiHaiPasculescu, director of Romania foreign investment department, Romania and other Romania representatives introduced the textile industry and investment situation in Romania.

According to reports, in the past 20 years, due to the lack of raw materials in Romania, the development of textiles is not good. Over 80% of the textile raw materials and accessories are satisfied through imports, and the products exported to the EU are 90%. The main countries are Germany, the United Kingdom, France and Italy, and the export volume has reached 6 billion euros.

At present, about 200 thousand of the population in Romania are engaged in the textile industry, most of which are small and medium-sized enterprises.

Romania has excellent climate and land resources, which is very beneficial to the planting conditions of flax. This will be one of its future development directions, and will be an extension of the industrial chain.

Romania is actively holding exhibitions to actively link up with Chinese enterprises to seek cooperation with suppliers of raw materials. It is revealed that it will build a tax free storage and logistics zone and a textile industrial park, attracting enterprises to invest.

From the perspective of investment environment, Romania runs through the East and west sides of the European Union, and the radiation potential of consumers is up to 500 million.

The amount of foreign investment invested in Romania last year has reached 5 billion euros, while Romania in eastern and central Europe is second of the population and seventh of the population. It can also radiate into the European Union, the former Soviet Union and the Middle East and other countries and regions.

Romania's growth rate has been uniform in recent years, and its growth rate has reached 4.19% in 2018.

Foreign investment has reached the highest level in recent years. Inflation rate reached 4.6% in 2018, but it is expected to be reduced to around 2.5% in 2019.

In 2018, the unemployment rate was 4.2%. From this year, the absorption rate of overseas workers in Romania increased to 20 thousand, and most of the workers came from Vietnam, India, Bangladesh and other countries.

The minimum net wage permitted by law is 446 euros.

China's textile strength

Sun Huaibin, vice chairman of the China Textile Federation and director of the Ministry of industry, introduced the basic situation and future development direction of China's textile industry to the representative of Luo Fang.

He mentioned that China's textile industry is a pillar industry of China's national economy, and has international competitiveness. Textile exports rank first in the world. The main traditional export markets are the United States, the European Union and Japan, accounting for 40%. With the implementation of the "one belt and one way" initiative, the countries along the route have become a new hot spot, accounting for 1/3 of China's total textile and clothing exports.

After the reform and opening up, the scale of China's textile industry expanded, the achievements of scientific and technological progress came forth, the scale of exports expanded, and the vitality of market development of products became more and more abundant.

Especially after entering the twenty-first Century, China's accession to the WTO has made the international competitiveness fully released. Besides, China's national economy has maintained a rapid growth, providing the industry with the driving force for domestic demand.

Referring to the regional distribution characteristics of China's textile industry, sun Huaibin pointed out that from the spatial layout of productive forces, the textile industry accounted for 70% of the whole country's five coastal provinces, such as Jiangsu, Zhejiang, Shandong, Fujian and Guangdong. In recent years, Xinjiang has also become a hot spot for textile investment, and the scale of industry has entered a high-speed development track.

According to the production layout of major products, chemical fibers are concentrated in Zhejiang, Jiangsu and Fujian; the yarn is mainly concentrated in Shandong; clothing is concentrated in Guangdong.

Since 2011, due to the late fermentation of the international economic crisis and its internal structural contradictions, coupled with the slowdown in China's national economy, the textile industry has entered a new normal growth rate.

In a large and complex international environment, such as the stalemate of Sino US trade relations, China's textile industry needs to make a directional adjustment. At the same time, in order to fulfill the high quality development tasks raised by the Chinese government and meet the new expectations of the Chinese people's good life, the Chinese textile industry is developing along the new orientation of technology, fashion and green, among which intelligent manufacturing, independent brand building and sustainable development are of particular concern.

Sino Romanian cooperation to explore opportunities

Xu Yingxin, vice chairman of the China Textile Federation and executive vice president of the textile industry branch of China Council for the promotion of trade, mainly introduced the progress of overseas investment in China's textile industry and prospected China's cooperation with China and Europe.

He pointed out that the "one belt and one way" initiative and the firm promotion of international capacity cooperation have created a favorable macroeconomic environment for the layout of the textile industry. The scale of trade has continued to expand and the direct investment in the countries along the border has increased steadily.

Today, China has built the world's leading independent and perfect modern manufacturing system for the whole industry chain. It is also the world's largest producer, export and consumer of fiber products. China's textile industry has the strength and power to enter the new stage of pnational layout.

The demand of textile enterprises is the internal cause of the internationalization of China's textile industry. Outward investment presents a multi regional, multi industry and multi form accelerating trend. The investment situation includes the form of equity merger, asset acquisition and joint venture, coordinating domestic market and linking international resources. The breadth and depth of China's textile industry is expanding continuously. From 2003 to 2018, China's textile industry's foreign direct investment totaled 9 billion 796 million yuan, with an average annual growth rate of 15.6%.

At present, the characteristics of China's textile industry's external investment cooperation mainly lie in two main lines, namely, the pnational distribution of productive forces and the global cooperation of high-quality resources. In terms of the distribution of investment zones, the main investment in the pnational greenbelt is mainly in Southeast Asian countries, and the mergers and acquisitions in brands are mostly in Europe and the United States.

From the point of view of subdivision, cotton spinning and knitting become the leading fields of overseas greenbelt investment in the industry, and investment projects in weaving, printing and dyeing, woven garments and industrial textiles have begun to increase.

Xu Yingxin suggested that China and the central and Eastern European textile industry should strengthen international exchanges and establish a long-term communication mechanism. At the same time, it will encourage more Chinese textile enterprises to invest in central and Eastern European countries. China is expanding its opening wider to the outside world, and welcomes the use of trade platforms to enter the Chinese market.

Experience sharing

Sun Ruizhe, President of the China Federation of textile industry, said in his concluding remarks that Romania is a real, distant, cordial and yearning existence for us.

China has just convened a summit of "one belt and one road". The countries along the belt and road all regard the development of the textile and garment industry as the preferred industry to promote economic development and employment. The governments and industry colleagues of various countries are willing to cooperate with China in strengthening the expectation of textile and clothing cooperation, and they should organize, step by step and purposefully cooperate.

Romania also has comparative advantages and good potential for cooperation: first, geopolitics is located at the intersection of Eurasian continent; second, it has a better textile industry foundation in history, and is currently the largest clothing production area in Eastern Europe. Third, the human resource foundation is better and the quality of personnel is higher.

At the same time, Sun Ruizhe shared the experience accumulated in the development of China's textile industry with Luo Fang. First of all, we must create a good external environment and set up an export-oriented development mode. Developing an export-oriented economy needs support from talents, funds and channels, and it can be solved through cooperation between China and Romania.

Second, cluster development, industrial agglomeration and development can bring together the same type of enterprises and develop centrally through local governments and even national power.

Third, the matching of the industrial chain and China's perfect industrial chain will enable it to meet new challenges even in the face of trade friction. Romania can also extend the industry from the garment processing to the wool spinning and linen spinning production line, such as in the middle and high-end suits, and so on.

In addition, on the cooperation and development of China and Luo, Sun Ruizhe also added: first, I hope that the Romania textile and clothing association and other institutions can list the list to facilitate the Chinese industry colleagues to have a deeper understanding of the needs of Luo Fang, and to lay the foundation for the next business docking and investment.

Second, we hope that the two sides will establish a long-term mechanism for communication and cooperation through mutual visits and joint participation and organization of key projects.

Third, on the basis of Luo's demand, we will publicize and popularize the key investment areas that Luo needs for China's industry colleagues, laying the foundation for attracting investment next step.

Fourth, the creation of a policy environment also requires the two governments to go up to the national level.

At the end of the symposium, the delegation of the China Textile Association also visited TANEX, a well-known local enterprise.

TANEX was founded in 1999. It mainly consists of two major business segments, namely, garment and knitwear. Its products are mainly exported to retailers in France, Spain, Sweden and the United States.

The head of the company said that he was very interested in working with Chinese enterprises and has imported raw materials and accessories from China.