Problems and countermeasures faced by Zhejiang's textile foreign trade
[Abstract] This article makes a thorough analysis of the problems faced by Zhejiang's textile foreign trade and puts forward some suggestions for the problems faced Powerful solutions.
[Keywords] Zhejiang textiles, foreign trade, problems, countermeasures
After my country’s accession to the WTO, Zhejiang’s textile industry has participated in international competition at a deeper level and on a larger scale, achieving Rapid development. In 2004, total textile exports accounted for 20.9% of the country's total and 3.4% of the global total. Zhejiang has become one of the world's major textile export and processing regions. While developing rapidly, the shortcomings of Zhejiang's textile industry, which relies on quantity to win, have gradually emerged. On January 2005, the end of the textile trade quota system brought new challenges to Zhejiang's textile industry.
1. Problems faced by Zhejiang’s textile foreign trade
1. The business model is backward and the added value of the products is low
The development of Zhejiang's textile industry mainly follows the development route of extensive industry and mid- to low-end products. Export growth relies heavily on quantity promotion.
At present, many companies are still stuck in using cheap raw materials and labor costs to expand their scale, engage in extensive operations, and adopt a low-price marketing model. There is very little investment in technological innovation and brand creation. The depth and precision of product processing are not enough. The added value of products is low. The development speed of new products is slow, which cannot meet the needs of the international market. Some mid- to low-end products are over-competitive, which seriously weakens the enterprise's competitiveness. Competitiveness hinders the improvement of corporate economic benefits.
2. Electricity is in short supply and raw material prices are rising
In recent years, Zhejiang Province has become increasingly short of electricity. Due to the tight power supply, interval power supply measures are commonly adopted across Zhejiang, which makes it more difficult for enterprises to arrange production schedules and ensure on-time delivery. Enterprises are afraid to take orders or postpone delivery for fear of delaying delivery dates. While electricity is in short supply, raw material prices are also rising. In the past two years, as the prices of coal, electricity, oil, and transportation have increased, raw materials such as textile fabrics and cotton yarn have also increased. Due to the rising prices of raw materials and the rising prices of industrial products, corporate profits have been greatly reduced. 3． After the cancellation of passive quotas for textiles, disorderly competition will intensify
For a long time, disorderly competition based on homogeneous mid- to low-end products and using price wars as the main means has been prominent. From 2003 to 2004, the number of exporting textile companies in my country soared from 30,000 to nearly 40,000. The vast majority of companies also introduced advanced foreign equipment to expand their scale in the short term. When the product market is facing saturation, these textile companies that originally relied on "large quantity and low price" to win often resort to extremely suicidal "price wars", disrupting the normal business order and endangering the retention of the international market. After the passive quota for textiles is cancelled, more companies, especially small and medium-sized enterprises, will emerge in large numbers, and the problem of disorderly competition may be further exposed.
4． After the cancellation of textile quotas, foreign trade frictions will increase
Most of the textiles exported by Zhejiang are labor-intensive products. The exported products are basically at the low end of the international division of labor and value chain, and growth is based on "volume". Mainly, the added value of products is low, coupled with abundant and cheap labor supply, resulting in low cost of export products, which easily gives the impression of low-price dumping. In recent years, our province has been the province subject to the most anti-dumping and safeguard measures investigations in the country. Textiles have always been the focus of the trade liberalization process. At present, the world's major importing countries are paying great attention to my country's textile exports. After the cancellation of textile quotas, major importing countries will replace the quota system with other forms of trade barriers. If exports grow too fast in the short term, it will inevitably break the original market balance, cause market fluctuations, increase market pressure, and intensify trade frictions.
2. Countermeasures for Zhejiang’s textile foreign trade
1. Optimize product structure and improve operation and management level
Zhejiang textile enterprises must make long-term plans, focus on improving international competitiveness, adjust product structure in a timely manner, promote industrial upgrading, and form a group of companies with large market shares and high added value Leading products, realizing the transformation of export growth from quantity expansion to quality improvement. Enhance the technological innovation capabilities of enterprises as a central link in the transformation of industrial structure and growth mode.
Encourage large and medium-sized textile enterprises to establish national and provincial enterprise technology centers, increase the proportion of R&D investment in sales revenue, strive to develop patented products, original technologies and well-known brands, and play a leading role in the industry. Establish a brand strategy and expand brand exports; accelerate the implementation of the "going global" strategy, use international market resources to increase profit margins, and improve corporate management levels. 2． Build energy projects rationally and actively carry out technological innovation. The current period is a critical period for Zhejiang to accelerate development. The demand for electricity is considerable. The government should regard bottlenecks such as inadequate infrastructure and resource shortages as top priorities of government work. Heavy. Zhejiang has good economic conditions and abundant private capital. Governments at all levels in Zhejiang Province can formulate relevant policies to encourage private capital to participate in the construction of energy projects. While rationally constructing energy projects, governments at all levels in Zhejiang Province should encourage enterprises to actively adjust their industrial and product structures and support the promotion of advanced technological equipment and products that are energy-saving, consumption-reducing, water-saving, and environmentally friendly. Through appropriate policy guidance, encourage enterprises to carry out technological innovation, encourage the development of high-efficiency, high-output, high-value-added, and low-energy-consuming industries, strictly control new high-energy-consuming and high-pollution projects, and promote the optimization and upgrading of industrial structure within the industry. There should also be industrial policy guidance to encourage the development of products with high efficiency, low power consumption, and low energy consumption. 3． Strengthen industry self-discipline and adopt a robust export strategy
Textile industry associations at all levels should actively play an organizational role and, under the guidance of the Chinese government’s macro policies, cooperate with relevant Chinese social organizations to enhance the role of industry organizations in policy promotion, information Collection, risk warning, market development and other service functions. When similar companies and similar products compete in the same international market, guilds can balance various interest relationships, help companies formulate scientific and reasonable prices, marketing and competition methods, and prevent some companies from competing to lower prices and undermine each other regardless of long-term interests and overall interests. , commercial fraud and other "cannibalism", "production will destroy the market", and maintain the fair order of both domestic and foreign markets.
4. Establish an early warning mechanism for textile foreign trade frictions
With the The cancellation of textile quotas will inevitably intensify trade disputes, mainly in the form of anti-dumping. Therefore, Zhejiang's textile industry must further monitor, warn and respond to textile export trade. Enterprises should establish establishments in places where the market is saturated and may face anti-dumping. Actively implement restriction mechanisms to reduce the growth rate of exports to main sales markets, and suspend exports when they reach a certain ratio. We must conscientiously implement national policies and systems on textile trade, standardize corporate export behavior, and promptly detect and stop unfair competition. Maintain the legitimate rights and interests of the industry and enhance the ability of enterprises to participate in international competition. Support enterprises to actively respond to foreign anti-dumping investigations and trade barriers and maintain industrial security.
1 "Zhejiang Province. Manufacturing industry with advantages in the country' - Released by the General Office of Zhejiang Provincial Economic and Trade Commission
2 "Ministry of Commerce and General Administration of Customs Announcement No. 103 in 2004', - - China Textile Business Association
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3] "Promote free trade and build a cooperation platform', - - A speech by Du Renzhou, President of China Textile Industry Association, at the "Textile and Apparel Cross-border Procurement in China" Forum