Dong Kuiyong: Accelerate The Forging Of Competitive Advantages In New Industries, And Integrate The Cotton Textile Industry Into The New Development Pattern

2022 is a year of twists and turns and hopes, as well as a year of inheriting the past and ushering in the future.

In 2022, under the influence of the century epidemic, geopolitics, global inflation and other factors, China's economy will continue to face increasing pressure from shrinking demand, supply shocks and weakening expectations. The cotton textile industry is close to the front end of the industrial chain, with full market competition. It is faced with an unprecedented complex environment due to the double extrusion of the upstream raw material end and the downstream demand end.

Dong Kuiyong, president of China Cotton Textile Industry Association, said in an interview that in 2022, China's cotton textile boom index will be below the boom and bust line, and the industry will continue to be in a poor boom state. In July 2022, China's cotton textile boom index will fall to the lowest point of 45.23 in the year; The prosperity index in September 2022 was 49.7, the highest in the year. In addition, the overall production of the industry slowed down, the output of products declined, and the prices of raw materials and products declined as a whole. In the face of "weak demand and high inventory", the business pressure of enterprises is significant. The growth of major economic indicators slows down, profits decline, and losses expand.

In the face of difficulties, the cotton textile industry has been under pressure to develop, and has calmly responded to the impact of unexpected factors, maintaining a relatively stable and healthy development.

Keep your head firmly and work hard

Stimulate the vitality of industrial development

This year, the China Cotton Textile Industry Association took a steady and down-to-earth attitude. In order to boost confidence, feel the pulse of development, and effectively help enterprises cope with changes in the situation, it made concerted efforts online and offline, organized seminars, docking exchanges, training and other activities, and constantly stimulated the vitality of industrial development.

The cotton textile industry is a key industry to stabilize employment, foreign trade, people's livelihood and stability. In 2022, the environment facing economic and social development will undergo profound changes, and the complexity, severity and uncertainty of China's economic development environment will rise. In order to effectively help enterprises rescue and cope with the changes in the situation, on June 7, 2022, China Cotton Textile Industry Association organized an online forum for enterprises to jointly analyze and judge the current industry problems and plan follow-up measures.

Entrepreneur online forum is new in form and effective in fruit, gathering effective measures to deal with difficulties. In terms of product innovation, enterprises should aim at market highlands and market segments, strengthen supply chain research and development cooperation, strengthen the construction and protection of intellectual property rights, actively adjust the product structure, and develop differentiated, high-value and low consumption products; In terms of market expansion, enterprises should strive to expand the proportion of domestic market, and explore overseas markets outside the United States. In addition, enterprises should also practice hard, constantly carry out technological transformation, promote intelligent transformation of enterprises, and comprehensively improve the level of enterprise informatization and intelligence.

On November 10, 2022, the "Yueda · 2022 China Cotton Textile Industry (Yancheng) Development Conference&National Sizing and Sizing Technology Annual Conference, National Denim Industry Annual Conference" hosted by China Cotton Textile Industry Association was held online, and universities and well-known industry experts from upstream and downstream of the industry chain were organized to focus on industry development, product innovation and development, industrial upgrading, green sizing Sustainable development and other aspects were discussed and exchanged.

This meeting focuses on green carbon reduction and industrial sustainability. If enterprises in the cotton textile industry want to develop in the long run, they need to solve the three major problems of products, employment and environment. First, enterprises should do a good job in products, meet the market and lead the market; Second, associations, colleges and enterprises jointly build an online and offline training platform for vocational talents, and through the vigorous development of intelligent manufacturing, realize the replacement of machines for key positions, one person with multiple machines; The third is to realize the green transformation of the whole life cycle of products from the aspects of material design, production processing, recycling, etc., implement the green manufacturing project, promote the supply of green products, and build a green manufacturing system.

Under the severe and complex domestic and international situation and the impact of multiple unexpected factors, the development of cotton textile industry and enterprise management are facing tremendous pressure. On November 30, 2022, the second enlarged meeting of the sixth council of China Cotton Textile Industry Association and the third executive council of the sixth session were held online, focusing on the industry situation and countermeasures, which is of great significance and value for building confidence in development and clarifying the development direction.

The meeting pointed out the direction for the high-quality development of the cotton textile industry: first, constantly improve the coordination of industrial development, make overall use of the advantages of the east, the middle and the west, optimize the layout of raw material production capacity, promote the coordinated development of regions, and give play to the scale and supporting advantages of industrial clusters; The second is to continuously enhance the innovation and development capability of the industry and deeply implement the innovation driven development strategy; The third is to constantly improve the level of green development of the industry, increase the research and development of green processes and equipment, accelerate the construction of the green development system of the industry, and strive to provide more green, low-carbon and environmentally friendly products for the downstream market.

In addition, the China Cotton Textile Raw Material Industry Chain Conference and the Top 100 Cotton Textile Enterprises Summit, the annual meeting of the China Cotton Textile Sub standard Committee and the industry standard, association and group standard review meeting were held one after another; The survey activity of "high-quality development of cotton textile industry nationwide" was launched; It also launched the first collection of innovative products in China's cotton textile industry to assist enterprises in product innovation and brand building...... In 2022, China Cotton Textile Industry Association will continue to organize regular activities to grasp the development of the industry, understand the demands of enterprises in a timely manner, provide effective services in a timely manner, and accelerate the vitality of industrial development.

Make progress while maintaining stability and seize opportunities

Improve the resilience of the industrial chain supply chain

This year, the China Cotton Textile Industry Association insisted on encouraging scientific and technological innovation, promoting intelligent and green development, optimizing supply to promote upgrading, actively integrating into the new pattern of double cycle development, and further improving the toughness of the industrial chain supply chain.

Since the end of March 2022, the international cotton price has exceeded the domestic cotton price, and the internal and external cotton prices have been inverted so far, and may continue for a long time. The competition in domestic and foreign cotton textile industry, marked by the inverted price difference between domestic and foreign cotton, has taken on a new look. With the effectiveness of RCEP, China's cotton textile industry is further integrated into the global textile industry chain supply chain value chain by relying on the advantages of cotton price and chemical fiber supply. According to relevant data from the Ministry of Commerce, from January to November 2022, China's export of cotton textiles and clothing amounted to US $94.49 billion, down 1.67% year on year, accounting for 31.7% of the total export of the whole industry, making a great contribution to China's export of foreign exchange.

In the face of the current situation that the difference between domestic and foreign cotton prices continues to hang upside down, how can cotton textile enterprises seize new opportunities in the resistance of international competition? In this regard, Dong Kuiyong said that in 2022, the cotton textile industry will continue to promote high-quality development, continue to deepen the supply side structural reform, focus on improving the industrial chain, supply side flexibility and security level, promote the industrial chain and supply chain to the high-end of the global cooperation value chain, and form a more innovative, higher value-added, safer and reliable industrial system.

First, the industry adheres to scientific and technological innovation, speeds up intelligent manufacturing and promotes green production.

In 2022, the overall R&D investment of the industry will continue to increase. By strengthening the construction of technological innovation and product development capacity, enterprises will build high-level R&D centers and carry out industry university research cooperation, providing strong technical support for technological transformation and product research and development. For example, three products, including 11 sets of micro nano mosaic antibacterial home textiles innovatively developed by Weiqiao Textile, were included in the list of "2022 Top Ten Textile Innovative Products"; Xinxing Jihua Group 3542 has mastered the cutting-edge technologies in the industry such as new spinning integration technology, low PVA sizing technology, etc., filling the domestic technology gap... Similar cases are numerous in the cotton textile industry. Continuous scientific and technological innovation has also been recognized by the industry and the market. In the announced 2022 China Textile Industry Federation Science and Technology Award, the cotton textile industry has won one second prize for technological invention, one first prize for scientific and technological progress, and six second prizes.

Advanced production equipment is the basis for good operation of textile enterprises. In 2022, the import of air jet vortex spinning machines and high-efficiency rotor spinning machines will increase significantly, and the equipment sales will reach the best level in the history of the same period, especially the import amount of air jet vortex spinning machines will hit a new high level in the history of the same period. In addition, the number of full-automatic warp knitting machines is growing, and the number of high-speed looms has exceeded 500000. Through industrial upgrading, the differentiation of enterprises has intensified, and some advantageous enterprises have bucked the trend and performed well in difficulties.

In 2022, the cotton textile industry will continue to adhere to the sustainable development strategy, guide enterprises to actively fulfill their social responsibilities, focus on green production, accelerate the construction of the industry's green manufacturing system, encourage enterprises to create green factories and develop green designed products. In 2022, many enterprises in the cotton textile industry have been rated as provincial green factories and are actively applying for national green factories. In the tenth batch of Green Manufacturing Technology and Innovative Application Catalogue issued by China Cotton Textile Industry Association, there are 27 energy-saving and carbon reduction technology projects and 12 innovative green manufacturing enterprises, which is also a sign of the improvement of the industry's green level.

Second, the industry responded to the activity of "optimizing supply to promote upgrading" of textile and clothing, and actively integrated into the new pattern of double cycle development.

In 2022, the cotton textile industry will actively respond to the activity of "optimizing supply to promote upgrading" of textile and clothing, help the textile and clothing industry upgrade, product upgrade, and consumption upgrade, make efforts in both expanding domestic demand and protecting foreign trade, and integrate into the new pattern of double cycle development. With the change of the cotton textile terminal foreign trade market, cotton textile enterprises actively respond, avoid the risks in the European and American markets by adjusting the product raw material structure, making full use of imported cotton and inland cotton, increase the development of countries along the "Belt and Road" and emerging markets such as ASEAN, Africa and Latin America, and fully protect foreign trade; In terms of domestic demand, actively cooperate with domestic terminal brands to jointly support Xinjiang cotton and promote Xinjiang cotton online and offline.

Third, the enterprise continues to optimize the industrial layout at home and abroad, make up for weaknesses, strengthen advantages, improve the enterprise's ability to resist risks, and enhance the independent and controllable ability of the industrial chain supply chain.

As an industry full of market competition, many cotton textile enterprises realize that, within a certain range, the expansion of enterprise scale can reduce the marginal cost of raw materials and production, improve production efficiency, enhance market bargaining power, and then increase enterprise profits. For example, in 2022, Dasheng Group acquired three high count yarn enterprises under China Resources Textile, improved the product structure and realized the reinforcement and integration of the industrial chain; Lutai announced that it plans to invest a total of about 210 million dollars in Xining Province, Vietnam, to build a production base for high-end woven fabric products with an annual output of about 60 million meters, improve the global order receiving ability, and further enhance the international leading edge of Chinese cotton textile enterprises in the global supply chain.

Keep walking and forge ahead with perseverance

Leading the development direction of the industry

This year, the China Cotton Textile Industry Association thoroughly implemented the spirit of the 20th CPC National Congress, focused on the key points of the Central Economic Work Conference, actively deployed the key work in 2023, and led the development direction of the industry.

The 20th National Congress of the Communist Party of China has mapped out a grand blueprint and practical path for building China into a modern socialist power in an all-round way, opening a new chapter of Chinese style modernization. The report of the 20th National Congress of the Communist Party of China pointed out that high-quality development is the primary task of building a socialist modern country in an all-round way, which points out the direction of action for the future development of the cotton textile industry.

Dong Kuiyong said that in 2023, China Cotton Textile Industry Association will thoroughly implement the spirit of the 20th CPC National Congress, carry out work in industrial structure, industrial safety, scientific and technological innovation, product competitiveness, green development, talent training, etc., implement a series of key projects, promote a number of key technologies, and promote high-quality development of the industry.

First, improve the coordination of industrial development and build an industrial security development system. China Cotton Textile Industry Association will position the main regional functions according to the development level of the industrial chain, give play to the scale advantages and supporting advantages of the cluster area, and cultivate world-class cotton textile industry clusters; Make use of the advantages of leading enterprises to build world-class cotton textile enterprises and highlight the industrial brand label; Cultivate a batch of "specialized, special and new" enterprises and single champion enterprises to drive the coordinated development of the industry as a whole.

Further promote the reform of the cotton management system, continue to promote the combination of macro-control and market regulation, promote the linkage of multiple policies, such as the target price of cotton, high-quality subsidies, regular reserve cotton rotation in and out, import cotton quota management, reasonable optimization of cotton planting area, play the role of stabilizing the market, and ensure cotton demand and industrial security; Promote the wide application of non cotton fibers in the cotton textile industry, improve the added value of products, and form a long-term and safe raw material guarantee mechanism.

The second is to improve scientific and technological innovation ability, product core competitiveness, and promote green and sustainable development. We will further implement the innovation driven development strategy, create a technological source of the cotton textile industry, and carry out key research and technology promotion in 15 fields, including intelligent manufacturing, new gauze production and processing, color matching and dyeing, environmental sizing, and regional industrial big data; And improve product competitiveness through a variety of ways to comprehensively enhance product profitability. At the same time, we will continue to adhere to the sustainable development strategy, actively and steadily promote carbon peaking and carbon neutrality in the industry, implement carbon peaking actions in a planned way and take an active part in tackling climate change.

Third, strengthen the construction of professional talent system. In 2022, the cotton textile industry will pay more attention to talent cultivation and the stability of the staff. The online training of "Golden Blue Collar Network School" and "China Cotton Textile Industry Skilled Talent Improvement Project" in 2022 will be held to improve the skill level of employees and provide stronger talent support for the high-quality development of the industry. In 2023, China Cotton Textile Industry Association will guide enterprises to improve the management system of talent introduction, training and reward, strengthen the training of compound, innovative and practical talents and industrial workers, and ensure the healthy and sustainable development of enterprises.

The five major plans of the Central Economic Work Conference point out the direction for China's economic development in 2023. Specifically, cotton textile enterprises should actively adapt to new situations, new changes and new requirements, and firmly promote high-quality development of the industry. Dong Kuiyong said that in 2023, the cotton textile industry needs to give better play to its fundamental and supporting role, promote the formation of a benign supply chain ecology driven by the consumer end, driven by the raw material end, and coordinated by the manufacturing end, create an efficient, high-quality, and responsible cotton textile and clothing supply system, and maintain the flexibility and stability of the supply system.

First, we must seize the new opportunities generated in the process of global industrial structure and layout adjustment, and have the courage to open up new fields and win new tracks. Cotton textile enterprises should make full use of the conditions created by RCEP and other economic and trade agreements to expand the development of countries along the "Belt and Road" and emerging markets such as ASEAN, Africa and Latin America; We should try our best to maintain dialogue and exchange with European and American brand stakeholders, take the domestic market as the chip of voice, seek consensus and promote cooperation. Of course, to establish a diversified layout in the international market, we should also consider balancing the relationship between domestic development and international layout.

Second, we should adhere to the proactive, prudent and planned steps to implement carbon peak and carbon neutral actions, and forge new industrial competitive advantages in this process. Enterprises need to do a good job in top-level design, promote greening with digitalization, and accelerate the adjustment and optimization of their own industrial structure, energy structure, transportation structure, land use structure, etc. It is also necessary to make good use of the fiscal, tax, financial, investment, price policies and standard systems that support green development, accelerate the research, development, promotion and application of advanced technologies for energy conservation and carbon reduction, implement a comprehensive conservation strategy, promote the conservation and intensive use of various resources and recycling of waste, and form a green and low-carbon production mode.

Third, it is necessary to correctly give play to the financial attributes of cotton and cotton yarn, and improve the cross industry cycle capability. In the face of drastic fluctuations in raw materials, enterprises can make full use of the advantages of being sensitive to the market as an industrial end, give full play to the financial attributes of cotton and cotton yarn, hedge the impact of changes in production costs and phased inventory, improve the ability to cross industry cycles, avoid excessive dependence on fluctuations in raw material prices, and at the same time fully realize the risks and do a good job in hedging and prevention.

Fourth, we should focus on the cultivation of skilled personnel and the construction of talent teams. On the one hand, associations, colleges and enterprises should work together to reform the training mode of skilled talents, unblock the development channel of industrial workers, and innovate the "order" talent training mode; On the other hand, it is necessary to create an industrial culture of striving for perfection, build a corporate culture adapted to local conditions, tell a good cotton textile story, and stabilize the industrial workforce with better economic treatment, warm humanistic care and humanistic management.

Looking forward to 2023, China's cotton textile industry will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the 20th National Congress of the Communist Party of China, adhere to the principle of stability and progress in stability, fully, accurately and comprehensively implement the new development concept, continue to promote industrial transformation and upgrading, and accelerate integration into the new development pattern. The completeness of China's cotton textile industry system and the resilience and vitality of the industry are still the most advantageous. It is believed that with the support of stock policy and incremental policy, the vitality of China's cotton textile industry is expected to accelerate its release, and the overall operating situation is expected to recover.