Zhu Beina: Challenges and Opportunities for China's Cotton Textile Industry

Dear leaders, distinguished guests, everyone! I am very honored to be invited by the organizers to participate in this International Cotton Conference. I am very pleased to have the opportunity to discuss the future development of the global cotton industry with professionals from all over the world. I would like to extend my warmest welcome to the meeting on behalf of the China Cotton Textile Industry Association. Congratulations. According to the theme of the conference, I will introduce the development of our cotton textile industry around the theme of transforming economic growth patterns and raising the level of industry development.

The content of my talk is mainly divided into three aspects, one is the contribution of China's cotton textile industry, the second is the operation of China's cotton textile industry market, and the third is the development direction of China's cotton textile industry.

The contribution of China's cotton textile industry, here I mainly summarized the following aspects. First, China has achieved very good results in the import and export of gauze production, as well as in the economic benefits, technical progress and investment in cotton textiles, as well as in brand building. I very much agree with the speech of Director Sun Huaibin of China Textile Industry Association this morning that we have carried out structural adjustments under the macroeconomic situation. In 2010, the Chinese cotton textile industry, like the textile industry in the world, has achieved a very good historical perspective. .

The capacity of China's cotton textile industry was also presented this morning by some guests. According to statistics of our Cotton Textile Industry Association, by the end of 2010, the entire society had a total of 120 million spindles. According to the announcement of the National Bureau of Statistics, the yarn production in 2010 was 27,170,000 tons, and the cloth production was 80 billion meters. However, many guests this morning and this afternoon made introductions and talked about the processing volume of cotton in China was 11 million tons in 2010. According to the data provided by the China Chemical Fiber Association, polyester staple fiber used for cotton textile production should be around 10 million tons. According to our Cotton Textile Industry Association, which has conducted in-depth surveys of provinces, regions, and companies, about 4,000 spinning companies are involved. We believe that the yarn output should be different from the actual situation.

Second, the situation of import and export. The international competitiveness of China's cotton textile industry has further increased. For our cotton textile industry, we mainly introduce the situation of gauze imports. Imports and Exports of Cotton Yarn We have been a trade deficit from 1995 to 2010 and reached the highest value last year. Our highest deficit is 580,000 tons. However, our cloth still has some international competitiveness, which shows that there is room for further improvement in the grades and types of our cotton textiles. This is some of the analysis we have conducted. Our emerging export market is mainly ASEAN, and the share of exports has increased by 19% and 17% respectively.

Third, the key equipment. Everyone today mentioned that our textile industry needs to undergo industrial transformation. During the five-year period, our industrial transformation is still relatively fast. By 2010, the share of key equipment for cotton spinning will reach 71%, which is an increase of 15% compared to 2005, and the east will be in the middle. The transfer rate in the west has been significantly accelerated. From the perspective of profitability, by the end of 2010, there were 12,000 cotton textile enterprises in the country, and the main business income, total profit, and total output value of the cotton textile industry accounted for about 27% of all textile enterprises.

Brand building is a brand of the industry. China's spinning and weaving ability is the world's number one, and the world's most advanced compact weaving is a famous brand. Industrial brands, China's 27 companies have 35 product brand names won the title of China's brand-name products.

The second part is the operation of the cotton textile industry in China. The output of the morning high chair has been introduced. From the perspective of imports and exports, our cotton yarn imports are still twice as much as exports. From January to April, the situation of our cotton fabrics is relatively good. From what we have learned, the situation in May is not optimistic. In January-April, we mainly exported the market, and the ASEAN market had a relatively high proportion of exports. The market performance is the trend of finished product prices. It can be seen that the raw materials, cotton, and cotton yarns delivered by enterprises remained relatively strong before March, but the rapid decline occurred in April and May, especially so far. On the 10th of the month, compared with March, yarn has fallen by 20%, and the price of cloth has dropped by 17%. Because the continuous decline in the price of raw materials has seriously affected the market confidence of cotton textile companies, the wait-and-see mood is strong, and the orders are more cautious, and the overall market demand is weak. At present, some companies are also operating through non-cotton fiber production cuts.

This morning, our Director Sun also mentioned that there are many uncertainties in the current development of the industry. I am very much convinced. Here, from the perspective of cotton textiles, macroeconomic policies are more frequent and we feel more pressure. In addition, the appreciation of the renminbi and the enthusiasm of export tax rebates are facing international competitiveness. In addition, other cost pressures such as energy, electricity, and transportation, as well as labor pressure, have affected the development of enterprises. In addition, there is a key point is the tax burden of the industry, so that the company's profit margins are under pressure. In the end, there is still a lack of demand in the downstream, which also leads to poor business operations.

The third part is the direction of cotton textile development. Based on the above two parts, we can see that in the future, the cotton textile industry will continue to focus on the two themes of technological development and sustainable development. It will intensify its efforts in technological advancement, industrial upgrading, structural adjustment, brand building, market expansion, and enhancement of benefits. In the next five years, we will develop in terms of transformation, efficiency improvement, trade cooperation, and hope for more policy support. In the transformation and efficiency increase, with the improvement of people’s living standards, we believe that the total processing volume of textile fibers It will continue to grow, social spinning capacity and yarn production will also increase, and the corresponding consumption of cotton will still increase. The key point is that we must strive to improve the grade and quality of our products, speed up the scientific and technological content of our products, increase the level of advanced equipment, increase labor productivity, accelerate the elimination of high-energy-consuming equipment through resource conservation, and take smart, low-consumption, sustainable green Development path, use of scientific management mode to improve corporate efficiency, achieve orderly industrial transfer, and promote coordinated regional development. In international trade cooperation, we will actively develop mutually beneficial multilateral trade. I strongly agree with Gao’s speech. Regardless of the aspect, we still recommend that the relevant authorities impose sanctions on the breach of contract. Cotton textile companies will work harder, and at the same time hope that the country will give strong support at the policy level. Many delegates today put forward policy support from different angles. Here, on behalf of cotton textile companies, I also hope that the state will support the policy. Everyone raised the issue of the increase and deduction of cotton value-added tax for more than ten years. We hope to get the attention of the country and consider resolving it.

In today's domestic cotton prices have been lower than the international cotton prices for half a year, this time should be better to negotiate the cancellation of the sliding tax policy. Under the circumstance that import quotas cannot be cancelled, we hope that quotas will be more prone to textile production companies in order to ensure our position in the cotton textile industry, especially the international competitiveness of the textile industry.

In the future, our cotton textile industry is a basic industry in the textile industry. Its influence is so great. History tells us that from last year's situation, we can see that the stability and efficiency of the cotton textile industry are good, and the whole industry chain is It has a great influence. Here, on behalf of textile companies, I also hope that everyone will pay attention to the development of the cotton textile industry. China is a country with more than 1.3 billion people, so the sustainable development of China's textile industry is also inevitable. With the efforts made by China in adjusting the industrial structure and transforming the mode of economic growth, the future cotton textile industry will have more room for development. At the same time, we hope that we can jointly promote the harmonious development of the national cotton spinning industry.

Finally, on behalf of the China Textile Industry Association, everyone is welcome to attend the China International Cotton Textile Conference held in Yancheng, Jiangsu on October 17th this year. The conference will be held concurrently with the International Fabric Exhibition.