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Textile Industry: Wei Jigang, Deputy Director Of China International Development Knowledge Center

2021/2/23 12:47:00 0

Building A Strong Chinese Textile Industry Chain In Global Change

Textile industry is a pillar industry with traditional advantages in China, and its sustainable and healthy development is of great significance to the economy and society. As the largest textile and clothing producer, consumer and exporter in the world, China has built the most perfect modern textile manufacturing industry system in the world, and the manufacturing capacity and level of all links in the industrial chain are in the forefront of the world. However, we should also see that the development of various links in the textile industry chain is not balanced, and there are some obvious shortcomings. The long-term accumulation of contradictions and problems is also more prominent, facing a worse international trade environment, international competition is also more intense. In the new situation, how to maintain the traditional competitive advantage of textile industry, form new competitive advantage, and create a more powerful industrial chain in the global change, is a major topic worthy of study.

Outward migration of textile industry chain

From the perspective of textile industry chain, China's cotton spinning, conventional chemical fiber, printing and dyeing, clothing, home textile and some textile machinery have competitive advantages. But at the same time, there is still a big gap between China and developed countries in high-performance fiber, high-end textile machinery, industrial textiles and so on. In terms of high performance fiber and bio based raw materials, there is a significant gap between China and developed countries; The key technology and equipment of high-end textile machinery need to be imported. There are still 10 textile equipment and parts in China. It is estimated that the annual import amount is more than 500 million US dollars, accounting for about 1 / 7 of the import value of textile machinery and parts, including electronic yarn cleaner, air splicer and grooved drum for automatic winder, high-speed electronic dobby device for shuttleless loom, automatic warp knitting machine and industrial inkjet for textile Printing nozzle, printing guide belt, etc. Textile equipment industry is dependent on imports of some high-end general parts and raw materials such as high-performance metal materials, high-precision sensors, high-speed bearings, chips, seals, etc.

In the textile industry chain, cotton textile enterprises and knitting enterprises are the areas with the largest number of overseas investment and construction of production and processing bases. The main investors are basically domestic leading backbone enterprises. The investment regions are concentrated in Vietnam, Cambodia, Myanmar, Malaysia and other Southeast Asian countries, as well as African countries represented by Egypt and Ethiopia. China's cotton spinning enterprises have invested more than 2 million spindles in Vietnam, including Tianhong Group, which is the largest yarn manufacturer in Vietnam. Lutai group's investment includes 60000 spindles and 30 million meter colored fabrics, Huafu sefang has 300000 spindles and 10000 tons of dyeing, and Blum Oriental has invested 500000 spindles. Overseas investment in the fields of weaving, printing and dyeing, woven clothing and chemical fiber has also begun to appear. In the past two years, woven garment enterprises have begun to transfer some relatively simple large-scale products to overseas bases in Southeast Asia and South Asia. For example, Shandong Dishang Group invested in Bangladesh, Cambodia, Vietnam and Myanmar, Shandong Lutai invested in Myanmar to produce shirts, and Jiangsu Hengtian invested in two garment factories in Myanmar. The fabric projects invested by Shandong Lutai and Shandong Huafang in Vietnam include printing and dyeing. In 2019, Jiangsu Lianfa issued an investment announcement, saying that it will invest in Indonesia to build a high-grade woven fabric project with an annual output of 66 million meters, with a total investment of about 190 million US dollars.

The structural short board of China's textile industry chain and the reasons of some links moving out

(1) The cause of structural weakness in China's textile industry chain

First, the innovation system is not perfect. China's textile machinery enterprises, universities and scientific research institutes have not yet formed a development pattern of interconnection and giving full play to their comparative advantages. The isolated island phenomenon of separate development is relatively common, the mechanism of mutual benefit among institutions has not been fully established, and the national scientific and technological investment is scattered, so the social synergy effect has not been formed.

Second, the lack of professional and technical personnel. From the reality, there is a lack of professional and technical personnel, which can not meet the needs of social development and conform to the international development trend of textile industry.

Third, the overall profit of the industry is low. China's textile and clothing industry mainly relies on low-cost advantages to occupy market share. Most textile enterprises mainly produce low-value-added and high-level homogenization products, and have not yet formed a strong international brand. The whole textile and clothing industry is basically in the processing and manufacturing link with the lowest added value in the global value chain. The low profit leads to insufficient investment in innovation and brand.

Fourth, standards, testing, data management and other levels need to be improved. Most of the high-performance fiber manufacturers pay attention to the production process, lack of technical support and professional management in standardization, monitoring and evaluation, and the downstream use specifications, regulatory certification, database and standards are not fully established. There are many fields of industrial textiles, complex product types and many standard centralized units, which lead to the disunity of classification of industrial textiles standards and the difficulties in the implementation of standards.

(2) The reasons for the relocation of some links in China's textile industry chain

There are not only the development needs of the industry itself, but also external environmental factors.

The first is to ease the pressure of rising manufacturing costs. In recent years, the cost of various factors in China continues to rise, labor, electricity, taxes, cotton raw materials and other costs are superimposed. It is more difficult for enterprises to solve the cost pressure only by improving production efficiency. It is difficult to improve the situation of employee aging and high mobility. And Southeast Asia, Africa and other countries in labor, raw materials, electricity prices and other aspects of the cost advantage is more significant. For example, the monthly wage of Vietnamese textile and garment workers is about one-third of that of China's counterparts, and the industrial electricity price and water price are only 70% - 80%. When the local employees reach a certain number, they can enjoy the income tax exemption or half reduction. The monthly wage of Ethiopian workers is only 1 / 6 of that of Chinese workers, and the electricity price is less than 1 / 4 of that in China.

The second is to avoid the risk of trade environment. In recent two years, due to the significant increase in the uncertainty of international trade environment, more and more international brand purchasers began to reduce the proportion of textile and clothing products purchased from mainland China. Some textile enterprises with overseas factories transferred domestic orders to overseas factories and expanded overseas factories. Many enterprises showed strong willingness to invest in overseas factories. Vietnam and other developing countries have established tariff preference or free trade relations with developed countries such as the United States, Europe and Japan, and enjoy better market access conditions, which is also an important factor to attract China's textile enterprises to invest overseas.

The third is to seek the supply of high quality raw materials. In recent years, China's high-quality cotton supply shortage is more prominent. In order to solve the problem of raw material supply, many enterprises have invested in the construction of textile production bases in Vietnam, Uzbekistan, Malaysia, the United States and other regions with good infrastructure conditions and raw material planting advantages or convenient trade conditions.

Policy suggestions on building stronger textile industry chain

First, attach great importance to the upgrading of textile industry chain and accelerate the improvement of industrial innovation system. We should promote the development of key textile machinery, high-performance fiber and other short board fields to the height of manufacturing power strategy, adhere to the market-oriented, enterprise as the main body, promote the establishment of long-term and stable supply chain cooperation, and build industrial innovation alliance. We should strengthen the integration of innovation resources, give full play to the leading and radiating role of national important scientific research bases, and accelerate the construction of innovation service platform. We will strengthen the R & D, promotion and application of generic technologies, especially the R & D of major key technologies, generic technologies, basic process technologies, major equipment and new technologies that are related to the development of the industry. Support textile enterprises to create their own brands.

Second, speed up the promotion of intelligent manufacturing, realize the replacement of machines for human beings, and enhance international competitiveness. Around the requirements of cost reduction, efficiency improvement, quality improvement and supply and demand docking, the digital and intelligent process of textile and garment is promoted. Strengthen the application of digital, network, intelligent technology, textile and clothing industry chain of different links, production system and organization, enterprise and industry cooperation, etc. Accelerate the use of Internet of things, big data, cloud computing, artificial intelligence, 5g, blockchain and other information network technologies, vigorously develop the Internet of textile industry, promote the interconnection of people, things, services, enterprises, enterprises and users, online and offline integration, resource and factor collaboration, optimize the process flow, reduce labor demand, and improve total factor productivity International competitiveness of industry.

Third, strengthen the construction of textile standard system. We should closely follow, study and adopt international advanced standards, actively participate in and lead the formulation and revision of international standards, promote the technical standards of textile advantageous industries into international standards, and promote international mutual recognition of textile standards. Improve the standardization system of textile industry. We will strengthen the formulation and revision of standards in the fields of new fiber varieties, functional textiles, industrial textiles, intelligent textile manufacturing and integration of industrialization and industrialization. We will promote the convergence of upstream and downstream standards in the textile and clothing industry chain. Promote the development of group standards and enterprise standards better than national standards and industry standards.

Fourth, strengthen the construction of textile talent team. We should build a talent training system with textile and clothing colleges as the main body, and combine vocational schools, technical colleges, vocational training institutions and key enterprises, and strengthen the construction of multi-level talent teams with practical skills, engineering, innovation, strategy and compound. We should attach great importance to the spirit of craftsmen and the construction of craftsmen team to create a good environment for professional groups. We will focus on training strategic talents and innovative and entrepreneurial leading talents. We will promote the construction of training bases by colleges and enterprises, and improve the level of disciplines and skills training in coordination with the transformation and upgrading of the textile industry.

Fifth, stimulate the consumption potential of the domestic demand market and expand the application of domestic demand in the industry. We should actively guide textile enterprises to implement the "three products" strategy, improve the adaptability of brand products to domestic consumption, strengthen the publicity and promotion of dominant independent brands, and expand the consumption demand of independent brands. We should make good use of government procurement measures to support our own brand textile products to participate in the procurement competition. We will improve the government procurement of emergency products, physical reserves and capacity reserve mechanisms, and increase the demand for special textiles such as disaster relief tents, flood control and flood control geotextile bags.

Sixth, optimize the layout of domestic industries. We should improve the policy and investment environment in the central and western regions, encourage and guide high-quality textile production capacity to give priority to domestic industrial transfer, encourage textile enterprises to accelerate the upgrading of technical equipment through industrial regional transfer, and better resolve the pressure of environment and cost. We should strengthen policy coordination, study more effective tax, land, financial support and preferential emission indicators and other incentive measures for the central and western regions, so as to enhance the enthusiasm of enterprises to invest. We should strengthen the government's service function, solve the basic problems restricting industrial transfer such as infrastructure, talent shortage and discontinuous investment policies, and improve the investment environment.

Seventh, guide enterprises to carry out foreign investment in a reasonable and orderly manner. Strengthen the guidance of overseas investment in textile industry and improve the effect of international distribution. Guide enterprises to continue to integrate high-end resources of international industrial chain and value chain, including high-end manufacturing capacity, brand and channel, R & D technology resources, etc.; invest in textile raw material base to make up for the shortage of domestic natural fiber and oil resources. Guide textile enterprises to strengthen international production capacity cooperation with countries along the belt and road, and build the textile industry into a landmark cooperation demonstration field of the belt and road initiative.

(Wei Jigang, deputy director and researcher of China International Development Knowledge Center)

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