CSPC Leads The New Era: Wonderful 2019 Beating 2020.

The past 2019 was the 70th anniversary year of the founding of new China and the key year for building a well-off society in an all-round way. This year, under the complex situation of increasing risks and challenges at home and abroad, the whole industry worked hard and maintained a steady development trend as a whole.

Today, we usher in a new 2020. The year 2020 marks the end of the building of a well off society and the "13th Five-Year" plan. The textile industry, as an important part of the national economy, shoulders the bounden duty of glory.

At the beginning of the new year, Gao Yong, chairman of the China Textile Industry Federation and Secretary General of the China Textile Industry Federation, Sun Ruizhe, addressed the new year with an authoritative perspective, looking forward to the trend of domestic and international trends in 2020 and the goal of the industry, so as to point out the direction for the new year.

Gao Yong

Party secretary and Secretary General of China Textile Industry Federation

Speed up the pace of adjustment.

Achieving high quality development

2019 is the 70th anniversary year of the founding of new China and the key year for building a well-off society in an all-round way. In 2020, we will usher in the goal of building a well-off society in an all-round way and ending the 13th Five-Year plan. In the past year, under the complex situation of increased risks and challenges at home and abroad, and the downward pressure of textile industry, the industry has been striving hard to maintain steady development.

From the perspective of international trade, 2019 is the most dramatic year, with the biggest change. Trade negotiations between China and the United States are fluctuating and trade policies are constantly changing, causing export data to fluctuate. 2019 is the fourth year of 13th Five-Year, and the textile industry has been growing at a low speed for four consecutive years. Due to the continuous improvement of industrial concentration in the chemical fiber industry, most of the leading enterprises in the industry have performed well. Especially the output of polyester filament, nylon filament and viscose staple fiber has maintained a relatively high growth. The new solvent method has made breakthrough in the localization of cellulose fiber and has been increasing in scale. The industry textile industry continues to keep pace with the growth rate of other industries. The global fiber processing volume has maintained a growth rate of about 3%. In the past two years, the growth of China's fiber processing volume has begun to fall below 3%, showing a low growth trend.

On the whole, the pace of structural adjustment has been quickening in the development of industries. First, the adjustment of industrial structure has been speeded up. The two is the acceleration of product structure adjustment, and the development of new fibers has become a bright spot. For example, carbon fiber T700 and T800 have achieved mass production, and T1000 has also achieved breakthroughs. Weihai development and Zhongfu Eagle have been put into operation to build 10000 ton carbon fiber production base. Three, the regional structural adjustment is speeding up. With the implementation of the "one belt and one way" construction, the textile industry "going out" has accelerated the pace of active layout in the international market, and the domestic capacity has shifted to the central and western regions. The development of Henan's "clever daughter-in-law" project is hot. Shaanxi's "three Qin Qiaoxi" has begun to layout, and the textile industry in Yunnan, Guangxi, Jiangxi and Ningxia has been helping the poor and precisely helping the poor in the ascendant.

The decline of traditional clothing exports and the slow growth of domestic market sales will inevitably affect the spinning and weaving of the upper reaches of the industrial chain. Influenced by cost factors, the export garment orders are transferred to overseas low-cost areas, while the printed dyed fabrics keep growing. This structural adjustment is normal. The future of new fibers and high-grade fabrics will further expand the international space. Therefore, we can not draw the conclusion that the industry is not good because of the slow growth of the industry. We should see that the structural adjustment of the industry is speeding up.

In recent years, the foreign investment of China's textile industry has been accelerating in a multi regional, multi industry and multi form manner, and the awareness of textile backbone enterprises to actively carry out international layout has been constantly enhanced. According to incomplete statistics, the foreign investment stock of China's textile industry is more than 10 billion US dollars at present, and the actual amount is more. It should be noted that the overseas layout of textile industry is an inevitable trend of industrial development, but the investment amount of tens of billions of dollars is not large relative to the scale of China's textile industry. A large number of production capacity still needs to meet domestic demand. Therefore, industrial transfer should be transferred from developed areas to the central and western regions, which is determined by the unbalanced development of China's regional development.

In 2020, it will usher in the year of textile "13th Five-Year" and the construction of a strong textile nation. Facing the uncertainty of domestic and international situation, the industry will still maintain steady development, showing a slow growth trend, perhaps more difficult than 2019. This requires the industry to continue to increase structural readjustment in accordance with the requirements of "technology, fashion and green" positioning.

At present, the China Federation of textile industry is already preparing for the 14th Five-Year plan. The analysis of the trend should focus on the reflection of the two markets. One is the international market. Since the reform and opening up in 1978, the export of China's textile industry has increased. After joining the WTO in 2011, exports showed a leaping development. To four or five years ago, export growth declined, but negative growth began in recent years. However, from the perspective of global textile and apparel demand in the past forty years, it has maintained an increase of around 3%. In the past, more than ten percent of China's growth was our share of other countries. Now, Southeast Asian countries, African countries and South Asian countries, including Vietnam, India and Bangladesh, have begun to gradually occupy China's market share in the United States, Japan and Europe. The current international market change is the role of economic laws and the market itself. Sino US trade friction is only an incentive. From the decline of China's export market, our exports to the United States are less than that of the European Union and Japan.

In view of the domestic market, the total retail sales of social consumer goods in China during the period of "fifteen" and "11th Five-Year" increased by more than 15% per year. In 12th Five-Year, it exceeded 9%, reaching a minimum of 5.8% per annum in 13th Five-Year, and a 8% increase under the promotion of national policies. But the growth of textiles and clothing was only 3%, and it benefited from the growth of net sales of 21%. For domestic market consumption, industry enterprises also need to analyze calmly, and need to have a clear understanding of different stages of social development. At present, the social economy has reached a new level. Over 1 billion 400 million of the Chinese population has reached the middle level of consumption, of which 150 million have reached the level of consumption in developed countries, and consumption demand has changed significantly. The rest of the low-income groups theoretically have huge market demand in the future, but how to improve the consumption ability of these groups faster is an important topic in the future.

The central economic work conference held recently proposed that we should make steady growth, promote reform, adjust the structure, improve people's livelihood, prevent risks and maintain stability in 2020. In particular, we should "improve the property rights system and market allocation of factors, improve the legal environment to support the development of private economy, and improve the policy system for the development of SMEs". The central government also issued documents to support the reform and development of private enterprises, and put forward a series of weighty policies and measures to create a better development environment for private enterprises. This series of measures has made positive contributions to the development of the industry, and has also increased confidence in our work in 2020.

The outline of building a textile power (2011-2020 years) and the textile industry "13th Five-Year" development plan mentioned that we plan to build a strong textile power by 2020. At present, apart from some indicators lagging behind the world's advanced level, most of the indicators are close to or even ahead of the world's advanced level. China's textile manufacturing power has been established. Facing the coming "14th Five-Year", the industry will realize the high quality development of the textile industry in the new historical condition, new era and new development stage.

Sun Rui Zhe

President of China Federation of textile industry

Remember the mission of strengthening the nation and enriching the people.

Opening a new chapter in industry development

When the law returns to spring, the Vientiane begins to renew. In the past 2019, Chinese textile people took the initiative to adapt to the complex situation that the risks and challenges were rising sharply at home and abroad. They strengthened confidence and made great contributions to the smooth development of China's economy. On behalf of the China Federation of textile industry, I would like to extend my sincere greetings and best wishes to all textile workers and friends from all walks of life who care about the textile industry.

2019 is the 70th anniversary of the founding of new China. The extraordinary development of the industry can be summed up by three key words.

One is reconstruction. This year, the global comparison of power has accelerated, the emerging market countries and regions have risen in groups, the trade rules have been speeded up, the global regional and bilateral trade agreements have been developing rapidly, and the subversive innovation of digital technology is constantly emerging, and the production mode and business mode of the industry are reshaping. The industry is facing both opportunities for development and unprecedented transformation.

The two is pressure. This year, the operation pressure of China's textile industry continued to increase. In 1-10 months, the industrial added value of textile enterprises above designated size increased by 2.4% over the same period last year, and realized operating income of 4 trillion and 27 billion 104 million yuan, an increase of 0.2% compared with the same period last year. The total retail sales of clothing shoes and hats and needle textiles were above 10624 yuan, with an increase of 2.8% over the same period last year. Exports, investment and profits continued to expand. In 1-10 months, the export volume of textiles and clothing in China was 232 billion 310 million US dollars, down 2.2% from the same period last year. The fixed assets investment volume decreased by 7% compared with the same period last year. The total profit of 34 thousand Textile Enterprises above designated size reached 232 billion 310 million yuan, representing a decrease of 8.7% over the same period last year. The industry needs to push forward the structural reform of the supply side, optimize the development of kinetic energy, overcome the downward pressure, and continue to play an active role in "steady growth and stable expectations".

The three is to play. This year, international trade continued to slump. According to WTO, Global trade grew by 1.2% in 2019. The industry withstood pressure, actively explored diversified markets, and played a constructive role in stabilizing foreign trade. In the 1-10 month, the net earning rate of textile industry accounted for 62.1% of the whole country, and the export volume of textiles and clothing increased by 1.3% and 6.6% respectively. Focusing on the overall requirements for building a moderately prosperous society, the industry has carried out industrial poverty alleviation, accelerated the innovation and industrialization of green manufacturing technology, and made important contributions to the three major battle areas.

The prospects are limitless and the road is not smooth. The international market, the sources of global turbulence and risk points have increased significantly, and the world economy is still in a period of deep adjustment. Despite recent achievements in Sino US trade negotiations, uncontrollable and uncertain factors still exist. In the domestic market, there is a certain degree of dislocation in the supply and demand structure of the industry. The capacity of some manufacturing links is relatively surplus. The development of technology intensive and knowledge intensive sectors needs to be strengthened, such as new materials research and development, fashion design, brand building and so on. The imbalance of industrial regional development still exists, and the industrial layout with complementary advantages, regional linkage and coordinated development needs to be formed. The contradiction between the development of some industries and the constraints of resources and environment is still outstanding, and the industry needs to play a more active role in the global action to cope with climate change.

Although the environment is more complex, industry development is still in an important period of strategic opportunities. China's textile industry has formed the largest and most complete industrial system in the world. The pillar industries of the national economy, important livelihood industries, and the creation of new competitive industries with international competition have become more prominent. Overall, the vast majority of China's textile industry indexes have reached or even ahead of the world's advanced level, and the goal of "textile power" in the framework of building a textile power program (2011-2020 years) has basically been achieved. The increasingly open external pattern, the super large domestic demand market, the huge human capital and the talent resources provide strong support for the high quality development of the industry, which will play an important role in achieving the excellence and excellence of China's textile and garment industry in the coming period.

Looking ahead, heavy responsibilities lie ahead. The year 2020 marks the end of the building of a well off society and the "13th Five-Year" plan. The textile industry, as an important sector of the national economy, shoulders the bounden duty of glory. In the new year, the textile industry will take Xi Jinping's new socialist ideology with Chinese characteristics as the guide, implement the spirit of the central economic work conference, unswervingly push forward the new development concept, and focus on managing our own affairs around the structural reform and high quality development of supply side. In particular, we must implement the new orientation of "science, technology, fashion and green" industry and speed up the transformation and upgrading of the industry and the development of high quality.

First, we should strengthen innovation drive and promote the development of energy industry. Focusing on key common technologies and leading technologies, we will deepen technological innovation, product innovation and mode innovation. We should establish and improve the industrial innovation system combining production, teaching and research, and vigorously promote the R & D and industrialization application of fiber materials, green processes, equipment, and so on, so as to enhance the enterprise's innovative ability. We should actively develop intelligent manufacturing and industrial Internet, and promote the deep integration of technology and manufacturing links such as 5G, AI, block chain, and enhance labor productivity and flexible manufacturing level. We should accelerate the construction of an industrial organization system suited to the new technological and economic paradigm, break the barriers and obstacles that impede the flow of factors, and fully activate the potential of industrial development. We will create a number of leading enterprises with independent innovation capability, brand awareness and resource integration ability to or near the world level, as well as a number of "hidden champions" enterprises in the subdivision industry.

Two, we should improve the industrial layout and promote the intensive development of industries. The industry should establish a global comparative advantage with a higher quality and efficiency, and explore a new "national system" that integrates social resources and industries. First, we must vigorously develop platform economy. We should guide the construction of all kinds of platforms in enterprises, regions and industries, and make full use of the resources gathering and integration function of the platform with the help of market, capital, culture and responsibility. We should improve the construction of public service platform and promote the development of large and medium-sized enterprises. Two is to improve the construction of industrial clusters. Docking the national regional development strategy, focusing on key areas, highlighting local characteristics, bringing together superior resources, building state-level textile and garment strategic emerging industry bases and world-class advanced textile and garment industrial clusters; focusing on intelligent manufacturing, personalized customization and other industry new models, discovering and cultivating new industry clusters with an epochal, forward-looking and leading role.

Three, opening up is the kinetic energy to expand the new space for the development of the industry. At present, China is pushing ahead with the new round of reform and opening up. The industry should seize the opportunity and constantly enhance the development of new kinetic energy and create new competitive advantages in opening up. On the one hand, we should strengthen cooperation with foreign institutions and enterprises in R & D, technology, design, brand, capital and talent fields. On the other hand, we should actively build a global production R & D marketing system, promote enterprises to integrate resources, link up the market and establish brands in a wider range, and balance the pace and intensity of going out in the process of going out, so as to prevent the industry from hollowing out.

The road is long and the line is coming. 2020 is a year full of hope and challenge. The new year opens up new hope, new journey and new dream. It is hoped that the workers in the textile industry will not forget the initial intention of the industry to serve the country, remember the mission of the powerful nation and enrich the people, do not want to dream in the air, do not aim at the empty voice, seek truth and pragmatism and make a vigorous attitude, face the challenge and open a new chapter in the development of the industry.