Industry Perspectives: Opportunities and Solutions in Post-crisis Era

Through the analysis of the contribution of the OECD market and China’s textile trade growth in the last decade, it can be concluded that the growth of China’s textile industry in the OECD market is mainly due to world growth and price competitiveness. Markets and products The contribution of advantages is small. In recent years, due to the rising cost of raw materials for labor, China’s price competitiveness has declined significantly in the past decade. Therefore, in the post-crisis era, China must achieve a new round of growth, and must adjust the industrial (product) structure, optimize the market structure, and change traditions. Competitive mode.

Recalling the first decade of the 21st century, the world economy has undergone major changes: China's accession to the WTO; the demise of the Multi-Fiber Arrangement (MFA); and the global financial crisis. These three issues directly affect China's textile industry: As the largest textile exporting country, China's accession to the WTO makes it truly global; and the demise of the distorted textile trade system MFA has enabled textile trade to return to the WTO's free trade principle; global finance The crisis has hit world textiles hard, and the textile industry has finally played the role of revival of economic redeemer.

Textile trade is the most basic and active part of the world economy, and China's textile industry is the main promoter of the world's textile trade. In the past 20 years, the world economy has grown by 1 percentage point, the world’s textile and apparel exports represented by the US dollar have increased by 2 percentage points, and China’s textile and apparel exports have increased by 4.86 percentage points. In the past few years, China’s textile trade has been growing faster than the world’s textile trade.

This decade, especially the financial crisis, has made everyone begin to re-examine the role of the textile industry and has also changed people’s views on the status of the textile economy. In fact, textile is the production industry of all mankind. It is the pillar industry and competitive industry of developed countries and industrialized countries in the past, present or future developing and underdeveloped countries. It is the springboard for the industrialization of most countries. In the process of urbanization, the new urban population employment, the evolution of urban industries, and the heavy responsibility of consumption and market expansion.

Clothing, food, shelter, and clothing are the most basic human needs. With the development of the global economy, the growth of textile and apparel consumption is much higher than the growth of population and the growth of the world economy. As a basic requirement, the textile and clothing industry is a basic industry that maintains social stability and human well-being in the world. On the contrary, the development of human society has provided a constant source of momentum for the textile industry.

Modern textiles not only provide consumer goods, but also provide a variety of materials that are fully relevant to human life, such as home decoration, automotive interiors, construction roads and water conservancy, light and high-strength transport vehicles, and biomedical applications. Materials, textiles have become the basic industries of mankind. In this regard, textiles are not only the leading industries that promote domestic demand and maintain growth in the post-crisis era, but are also likely to be industries that promote the growth of new markets, emerging industries, and emerging industries.

In the post-crisis era, China's textile industry is obviously facing a huge space.

The Multi-Fiber Arrangement (MFA) is a distorted trade mechanism and China is the biggest victim of MFA. In fact, MFA not only hinders the comparative advantage of a large number of developing countries and underdeveloped countries in China, but also delays the pace of industrial upgrading and economic structure optimization in developed and post-industrialized countries. From 1995 to 2004, MFA gradually disappeared under the procedures of the Textile and Apparel Agreement (ATC), and it can be seen that during this period, the growth rate of global textile trade is accelerating. This strongly suggests that the liberalization of textile trade is a prerequisite for a balanced and harmonious global economic growth.

In the past ten years, especially after the cancellation of the MFA, China’s textile industry has rapidly increased its share in the international market.

Take the OECD market as an example to analyze the contribution of China's textile trade growth in the last decade. We can decompose the growth contribution into four aspects: worldwide growth, product advantages, market advantages, and price competition advantages. We divide the products into fibers (SITC26), textile products (SITC65) and apparel (SITC84), dividing the OECD market. For North America (U.S., Canada), East Asia (Japan, South Korea), EU-15, and other OECD countries. The analytical structure of export growth factors can be obtained through analysis, which shows that the growth of China's textile industry in the OECD market is mainly from the world's growth (this is a significant increase after MFA) and price competitiveness (price competitiveness decline); the contribution of market and product advantages It is very small; the growth of the 15 EU countries is mainly from the world's growth. The product advantages have contributed a lot and the price contribution has been negative. The ASEAN countries' price competitiveness has been on the rise and the contribution of product advantages has been negative. All exporting countries have enjoyed the benefits of the growth in world textile trade brought about by trade liberalization.

It can be clearly seen that the growth contribution of China's textile trade mainly comes from the growth of global trade in the process of trade liberalization, followed by price competitiveness. However, due to the increase in the cost of labor resources in China in recent years, price competitiveness has declined significantly in the past decade, while product structure advantages and market structure advantages have contributed little. This shows that so far, China's textile export growth mainly depends on the scale and price competition. In the post-crisis era, China must achieve a new round of growth. To transform itself from a large textile country to a powerful one, we must adjust the structure of the industry (products) and optimize the market structure. We must change the traditional competition model.