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Dong Kuiyong, President Of China Cotton Textile Industry Association: Come Up Under Pressure, Take Advantage Of The Momentum, And Start The Journey Of "New Quality" Again

2025/1/23 20:15:00 0

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　　 At the end of the year and the beginning of the year, it is an important moment to review the past and look forward to the future. In order to summarize the development of the industry in the past year and look forward to the development direction of the new year, through in-depth dialogue with the presidents of various professional associations, we will show the highlights, achievements and challenges of the industry development, and discuss the trend of the future situation. Dong Kuiyong, President of China Cotton Textile Industry Association, was interviewed in this issue.

　　 In 2024, China's cotton textile industry will march forward bravely in a complex and severe environment, seek breakthroughs in industrial upgrading, and achieve development in deepening transformation. When the clock points to 2025, China's cotton textile industry will enter a critical period where challenges and opportunities coexist.

　　 "In 2025, the cotton textile industry may still face serious and complex international environment, trade protectionism, industrial security and other issues. On the whole, the adverse impact of external environmental changes has deepened, and the internal transformation of new and old drivers has experienced pain. The cotton textile industry is facing many practical difficulties and challenges in the raw material support end, production and operation end, market consumption end, and development environment end. It is urgent to consolidate and improve competitive advantage, and accelerate transformation and upgrading. " Talking about the challenges faced by China's cotton textile industry, Dong Kuiyong, president of China Cotton Textile Industry Association, said.

　　 At the same time, new opportunities are quietly gestating. China's cotton textile industry has ushered in a new development situation with the combination of favorable macro policies and emerging growth momentum.

　　 Looking back 2024

　　 Forge industrial tenacity in the challenge

　　 Back in 2024, the international environment is severe and complex, and trade protectionism, industrial security and other issues continue to affect the business operation of enterprises. Affected by the impact of raw material supply and the lack of effective terminal demand, the cotton textile industry has a weak recovery in the entire textile industry chain system.

　　 "Since 2024, the cotton textile industry has failed to meet the expectations after the" Golden Three Silver Four ", and the peak season cycle of the" Golden Nine Silver Ten "has almost failed. The industry's low peak season cycle has weakened, the peak season is not strong, and the slack season continues for a long time. The two key ratio indicators of operating income profit rate and loss surface of enterprises above designated size have reached the lowest level in more than 10 years, and the industry is under extreme pressure. ”Dong Kuiyong said that in the face of heavy pressure, China's cotton textile industry has thoroughly implemented the decisions and arrangements of the CPC Central Committee and the State Council, focused on the goal of building a modern cotton textile industry system, faced difficulties, actively acted, calmly responded to various risks and challenges, and worked hard to achieve stable economic development of the industry.

　　 Of course, some positive factors are also accumulating. Dong Kuiyong said that from the industrial economic operation data, under the superposition of stock policy and incremental policy, many economic data have marginal improvement and indicator repair.

　　 According to the data from January to November of the National Bureau of Statistics, since 2024, the main economic indicators of cotton textile industry have been under obvious pressure. Compared with industrial enterprises above designated size, manufacturing industries and textile industries, the main indicators of cotton textile industry, such as operating income, total profit, operating profit margin, cost per 100 yuan of operating income, asset liability ratio, and days of finished goods inventory turnover, fall behind to varying degrees, Only the operating income and average payback period of accounts receivable per 100 yuan of assets are slightly better.

　　 From January to November 2024, the operating revenue of cotton textile industry in Shanghai increased slightly by 0.7%, and the total profit decreased significantly by 17.9%, dragging down the operating revenue profit margin of the industry, which was only 1.92%. From the perspective of the trend within the year, with the support of macroeconomic policies such as "two new" and "two heavy", the main indicators such as loss area and profit margin showed a trend of continuous repair throughout the year.

　　 It is worth mentioning that as the two main links of the cotton textile industry chain, the economic operation trend of the cotton spinning industry and the cotton weaving industry has been differentiated. From January to November 2024, the cumulative revenue and profit of cotton spinning industry above designated size will both fall, with the total profit falling by 29.0%, which will only drag down the profit margin of revenue by 1.37%. Compared with the cotton spinning industry, the main economic indicators of the cotton weaving industry above designated size are better, with the cumulative year-on-year growth of 4.8% in revenue and the year-on-year decrease of 5.1% in total profit, which is even lower. The revenue profit margin is 2.90%, which is not 3.33% of the same period in 2023, but still 1.53 percentage points higher than that of the cotton spinning industry.

　　 Looking around the world, China's cotton textile industry has also demonstrated its unique competitive strength and development toughness on the international stage. In 2024, China's cotton textile industry withstood the pressure of insufficient highlights of global consumption demand, and supported the steady growth of national textile and clothing exports with a complete industrial chain, an efficient supply chain system and a huge domestic demand market.

　　 From the perspective of direct export of the industry, according to the data of the National Bureau of Statistics, from January to November 2024, the export delivery value of China's cotton spinning yarn and cotton weaving respectively increased by 14.6% and 0.81% year on year. Although the export delivery value data of the cotton textile industry is less than the textile export growth rate announced by the customs, the continuous recovery trend is still an important support for the stable operation of the industry.

　　 Dong Kuiyong said that in 2024, China's pure cotton yarn and imported yarn will show an obvious competitive pattern, and China's pure cotton yarn will show a large number of net imports. Vietnam, Pakistan, Uzbekistan, India and other Southeast Asian and surrounding countries will become the main source of imports, especially Vietnam, whose pure cotton yarn imports account for 48.9%. At the same time, China's pure cotton grey cloth market has shown a steady performance, achieving net exports to Southeast Asia and other countries.

　　 In addition, affected by multiple factors such as "Xinjiang related issues", the export amount of China's cotton textiles and clothing continued to decline, and its proportion in the overall export of textiles and clothing also continued to decline. The proportion and market share of cotton textiles and clothing exported to the United States also showed a downward trend. However, it is worth noting that the export of cotton textiles and clothing to the United States increased by 9.7% year on year, accounting for the proportion of all cotton textiles and clothing also stabilized and recovered.

　　 Advanced navigation quality under pressure

　　 In the face of changes in the domestic and international environment, China's cotton textile industry has not stopped, but actively adapted to the changes in the domestic and international situation, actively adjusted the development strategy, and changed from the past high-speed development to high-quality development. Dong Kuiyong said that it is mainly reflected in the transformation of growth rate from high-speed growth to medium speed growth, and the transformation of development mode from scale and speed to quality and efficiency. This is also the main feature of the development of China's cotton textile industry in 2024.

　　 In this process, China's cotton textile industry has demonstrated strong innovation and vitality, and has made remarkable achievements in equipment upgrading, regional layout optimization and product structure adjustment.

　　 First, the development of high-speed, intelligent and green equipment has been accelerated. In 2024, the overall level of production equipment in the cotton textile industry will continue to improve. The high-speed spinning production is the highlight of the annual development. The high-speed production line has basically become the standard configuration for new enterprises from the attempt of individual enterprises. Most of the ring spinning production lines newly put into production in 2024 are aimed at high-speed spinning production. High speed, intelligent and green production lines have advantages in production efficiency, production cost and other aspects, and their competitiveness has been significantly enhanced. In addition, high-speed and efficient equipment such as air jet vortex spinning and high-speed looms also maintained a high growth. In terms of intelligence, the intelligent system of spinning and weaving is becoming more mature, and the research and development of intelligent equipment such as spinning automatic joint robot, automatic cloth inspection system, cotton textile regional logistics robot is advancing rapidly, and good results have been achieved. In terms of greening, the green and energy saving of the overall equipment has long been the basic requirement for the equipment selection of cotton textile enterprises. In 2024, outstanding enterprises in the industry represented by Jiangsu Dasheng began to explore a "zero carbon factory" for cotton textile.

　　 Second, the regional layout shifted from the central and eastern regions to the west. Due to the rising cost of various factors in the central and eastern regions, the layout of China's cotton textile industry has gradually shifted to the western region. With its raw material advantages, energy advantages, regional advantages and industrial policy support, Xinjiang's cotton textile capacity has increased significantly since the "14th Five Year Plan". According to the research of China Cotton Textile Industry Association, Xinjiang's spinning capacity has exceeded 27 million spindles by the end of 2024, accounting for about 25% of the national capacity, 6 percentage points higher than that of 2020. From a nationwide perspective, Xinjiang has a strong support policy for the development of textile and clothing. With the support of the policy, Xinjiang's textile and clothing industry has developed rapidly, with rapid growth in fixed asset investment, significant increase in employment, continuous expansion of industrial scale, and continuous optimization of structural adjustment, forming a relatively complete industrial chain.

　　 The third is the transformation of product structure from routinization to differentiation. At present, China's cotton textile multi fiber composite blending and new structure spinning, weaving and processing technologies are more used, and new varieties of differentiated yarns and fabrics with different styles continue to increase. In terms of yarn products, according to the characteristics of different fibers, spinning enterprises have realized the differentiation of yarn functions and styles through pure spinning, blended spinning and spinning with different structures, and developed a large number of new types of yarns. The output of differentiated yarns has continued to increase. The spinning technology and spinning mode have continued to expand. The environmental protection concept of renewable and recyclable yarns has been valued. In terms of fabric products, the application of multi-component and functional fibers endows home textile fabrics with new tactile and healthy characteristics. The development of clothing fabrics further focuses on elastic properties and the concept of green sustainability, effectively meeting the requirements of terminal home textile and clothing.

　　 Looking forward to 2025

　　 Seeking industry breakthrough in adversity

　　 2025 is the end of the 14th Five Year Plan and the planning year of the 15th Five Year Plan. The cotton textile industry is exposed to the torrent of complex global situations. Trade protectionism, industrial security and other issues make the prospect of the industry a layer of uncertainty. With the strong support of various national macro policies, the industry needs to seek breakthroughs in adversity and forge resilience in challenges.

　　 Turning to the challenges facing the industry, Dong Kuiyong pointed out that, first, the adverse effects of changes in the external environment deepened, especially the possible increase in US tariffs will have an impact on China's economy, especially China's cotton textile end products account for a large proportion of exports to the United States, which may have a greater direct impact; The second is the pain of the transformation of new and old drivers. At present, China's cotton textile industry is in a critical period of structural adjustment and transformation. Several representative groups of relations, such as the traditional production and operation mode and the new production and operation mode, the industrial development in Xinjiang and the development of the mainland, the domestic industrial development and the overseas industrial layout, the ultimate single product production and the rapid response of the market, still need to be explored in depth, and clear Optimization, industry development confidence and expectations have not improved significantly, the new growth engine mechanism is not yet sound, the old engine is weak and the new engine has not yet fully formed a competitive advantage, and total factor productivity still has much room for improvement. The pain caused by the transformation of new and old drivers to the industry in 2025 may continue.

　　 Dong Kuiyong pointed out that the specific problems facing the industry in 2025 are mainly reflected in the following four aspects.

　　 At the raw material guarantee end, cotton is affected by various factors such as domestic and foreign price linkage, financial attributes, weather factors, policy factors, quota management, market sentiment, trade risks, etc. While occupying funds, cotton raw materials and product inventory often put pressure on the operation of enterprises in terms of price. Enterprises should be good at operating financial instruments.

　　 On the production and operation side, in terms of factor costs, as the cost of labor, energy, land and other factors continues to rise, environmental protection policies are increasingly strict, and the comprehensive cost of enterprises is gradually rising. Low cost countries bring medium and long-term competitive pressure. If large-scale industrial transfer is carried out, the risk of "hollowing out" of the industry will increase. In terms of technological innovation and production manufacturing, some core technologies and equipment are still under the control of others; In terms of market response, there are certain barriers to most cotton textile enterprises in terms of technology, quality and standards, and there are obstacles to integrating into the "double cycle".

　　 At the consumer end of the market, the effective demand of the terminal is insufficient, the dependence on foreign countries is high, the recovery of the international market is still weak in general, and the pressure on industry exports still exists. At present, China's domestic demand is generally in the trend of repair and expansion, but some macroeconomic indicators show that the terminal effective consumption demand related to cotton textile is still insufficient, and the foundation for cotton textile to rebound is still unstable.

　　 On the development environment side, from the internal point of view, the industry's attention is reduced and the special support policies are less, which has affected the development confidence of enterprises to a certain extent, and also led to problems such as older employees, lower average academic qualifications, slow growth of innovation investment, and insufficient motivation for transformation and upgrading. Externally, "Xinjiang related issues" continue to affect the safety of the industrial chain.

　　 For the cotton textile industry, new opportunities are emerging quietly in the challenges.

　　 Dong Kuiyong said that the first is the development opportunity of macro policy environment. In 2025, expanding domestic demand in an all-round way is listed as the top of the nine key tasks. A more active and promising macro policy will be conducive to expanding domestic demand, promoting the integrated development of scientific and technological innovation and industrial innovation, stabilizing expectations and stimulating vitality of the cotton textile industry, and promoting a sustained economic recovery. Second, new growth drivers continue to transform opportunities. The cotton textile industry is in a period of accelerated transformation and evolution of traditional growth drivers and emerging growth drivers. We should seize the opportunity to accelerate the development of new quality productivity, as well as the "integration of data and reality" of digital and intelligent enabling industries, seize the opportunity given by the scientific and technological revolution to improve the total factor production rate of the industry, and seize the opportunity for green development to become an international consensus and national strategy.

　　 Mapping the way forward in the changing situation

　　 In 2025, China's cotton textile industry will enter a historical intersection period full of challenges and opportunities.

　　 Dong Kuiyong pointed out that at this stage, China's cotton textile industry will still take building a modern industrial system as its strategic goal. To ensure the realization of this grand blueprint, the industry will carefully plan and unswervingly move forward along a diversified and forward-looking development path. The main path includes the following aspects: improving the system coordination of industrial development; Promote the upgrading of the industrial base and the modernization of the industrial chain; Strengthen the supporting capacity of scientific and technological innovation; Enhance the fashion attribute of industry and products; Improve the green development level of the industry; We will also build strong human resources and a stable and strong industrial workforce.

　　 In 2025, the China Cotton Textile Industry Association continued to adhere to a forward-looking vision and strategic thinking, elaborately constructed a set of key work and activity blueprints aimed at promoting the deep transformation and high-quality development of the industry, focusing on industry research, scientific and technological innovation, fashion development, green manufacturing, talent construction and raw material security, and other dimensions, with a view to actively responding to industry challenges, Insight into the future development path.

　　 In terms of industry research, improve the accuracy, comprehensiveness and logicality of statistical data, strengthen the depth, foresight and reference value of operation analysis, provide timely information for industry operation decisions, do a good job in research, continue to carry out research and judgment on industry operation, and do a good job in research in various subdivisions.

　　 In terms of scientific and technological innovation, we will carry out corresponding basic research and industry mapping from both scientific and technological development and technological innovation. Tracking the latest trends and development trends of intelligent, digital and artificial intelligence applications in the industry, relying on branches and other platforms, orderly carry out various technical exchange activities, continue to carry out industry standardization work, and build a perfect industry standard system from new materials, new processes and other aspects.

　　 In the aspect of fashion development, we will solidly promote the main work related to yarn exhibition, fashion trend research and release, brand promotion, industrial chain docking, etc., show the society the fashionable and high-level industrial image of China's cotton textile industry, and enhance the confidence of industry culture.

　　 In terms of green manufacturing, we will continue to guide more cotton textile enterprises to carry out the cultivation and guidance of green factories and green supply chain management enterprises in a broad, accurate and high-quality manner, and help more cotton textile enterprises to become city level, provincial level and national level green factories; Promote the construction of green standards, guide the rapid development of the industry's green manufacturing system, carry out green manufacturing technology collection and promotion activities, and promote the faster and better implementation of advantageous technologies.

　　 In terms of talent construction, we should do a good job in the enrollment and training organization of the ninth national advanced training course for textile composite talent training engineering, expand the depth and breadth of the course, and strengthen communication and field visits with the students of previous advanced training courses; Strengthen the publicity, implementation and promotion of outstanding talents and craftsman spirit, and do a good job of talent recommendation according to the requirements of the superior; Carry out online and offline diversified skilled personnel training and services, and constantly deepen skilled personnel work.

　　 In terms of raw material guarantee, we should do a good job of publicity and guidance, give full play to the guiding role of industrial policies, promote cotton system reform, import quota reform, target price reform and reserve cotton rotation, pay attention to cotton industry safety and other issues, and promote high-quality development of the industry; To safeguard the interests of the industry, reflect the demands of the industry to the relevant national departments, take the work of the raw material industry chain branch as the starting point, serve the raw material guarantee of enterprises, and ensure the cotton demand of enterprises. At the same time, actively carry out information exchange, resource docking and research activities in the upstream and downstream of the raw material industry chain, strengthen the exchange and cooperation in the upstream and downstream of the industry chain, expand the service field, and help guide enterprises to improve the ability to use futures and other financial instruments.

　　 The warp and weft are intertwined, and the cotton rhyme is long. A new journey has begun, and China's cotton textile industry will follow the pace of the times with tenacity, tread the waves in the competition for prosperity, and expand the world of growth.