Problems in China's textile industry

Problems in China's textile industry

Problems in China's textile industry From this turbulent trend, we can see that while the Chinese textile industry suffers losses, it also exposes behind the rapid development. There are some non-negligible factors under the extensive mode of growth. The problem. Lack of brand awareness and talents in the design of China's textile and apparel industry in the world market in the middle and low, due to the low-end product market is also profitable, China's textile exports to the main licensing card, foreign trade companies independent innovation power is insufficient, since There are fewer brands.

In fact, the retail price of Chinese clothes in Europe is not low, but the profit of export companies is not high, because the export products are completely unbranded and profits are taken away by middlemen. Due to the lack of brand advantages of products, the profit margin is very small. Once there are changes in policies such as some tariff enhancements, the ability to resist risks will be poor. Because foreign trade companies are accustomed to OEM production, the lack of R&D and design capabilities, and the poor awareness of training their own design talents. In addition, although many foreign trade companies are trying to do their own brands, the proportion of investment is relatively small. Once they encounter difficulties, they will give up. This situation has led companies to respond passively to trade frictions.

Inadequate technology investment China's textile industry lacks research and development capabilities and independent intellectual property rights 4 Measures to prevent the further deterioration of the trend Although China and the EU have signed a new agreement on textile trade and avoided the occurrence of a textile trade war between China and Europe, this new agreement In the EU, the use of the terms of the restraint is potentially risky. This shows that the EU has not renounced the use of Article 42.

Another potential risk lies in the fact that Article ‧ of the People’s Republic of China’s accession protocol extends the time limit for possible safeguard measures for textiles from China to be extended to a year, which means that countries can still adopt this measure for Chinese textiles in accordance with this provision.

For the Chinese government and Chinese textile companies, there is a need to prevent the worsening of the errant trend and some countermeasures should be taken. Measures Taken by the Chinese Government China is the largest consumer and exporter of textile products in the world. In the face of the turmoil, the government has, since January 1 this year, successively adopted automatic tariff approvals for textiles that are partially exported to the U.S. EU and Hong Kong, and promoted the intermediary organizations to strengthen industry self-regulation and other positive actions. Measures have safeguarded the rights and interests that should be enjoyed, and have reflected the image of a responsible big country.

In order to deal with the complex international environment and enable China's textile industry to truly enjoy the benefits of integration, the government should further adopt the following measures: first, further improve the measures to impose export tariffs on some sensitive textile products and implement automatic export license management. As a means of economic adjustment, tariffs have the advantage of transparency, fairness, and fairness. By adopting this measure, we can encourage the export of high value-added products and further optimize the structure of China's textile exports. The key is to implement the relevant provisions of the two approaches and make timely adjustments and improvements based on actual conditions.

Second, to strengthen the dynamic monitoring of the number and price of key export products, improve the existing textile export warning system, and do a good job in exporting textile information. At present, the overall response mechanism of China's early warning system is slow and decision-making is not timely. In order to deal with possible situations, it is necessary to establish a more effective early warning system for government industry organizations and companies to perform their duties.

The government should provide macroeconomic policy guidance and accurately predict and analyze the effectiveness of policies. Proper decision-making by industry associations can prevent many problems from appearing. Industry associations should correctly position themselves, increase statistical efforts, and assume responsibility for the overall analysis of the industry. At the same time, The intermediate force between the government and enterprises, industry associations should also respond to the government's reasonable policy recommendations. Enterprises should be market-oriented for production and sales. They should pay attention to changes in the market and actively study their own impact.

Third, support the adjustment of textile export structure and encourage independent intellectual property R&D and export brand building. The government can guide enterprises to produce high value-added products through the tax rate and adjust the structure of export products. Take measures to strengthen the effective cooperation between companies and research institutions.

Fourth, continue to play the role of coordination and self-discipline of industry organizations. To avoid more trade frictions, industry associations need to play a greater role. At present, industry associations can take some measures, such as coordinating quantity, limiting the minimum normal price, implementing qualifications for operating enterprises for sensitive products, and formulating effective early warning mechanisms. In addition, China's trade associations are basically transformed from the original relevant government departments. Because of the problems in the foundation of its system, it neither represents the government nor represents the interests of the enterprise. Therefore, it cannot serve the enterprise wholeheartedly. In order to better play the role of coordination and self-regulation of the industry organizations, it may be considered that exporting companies spontaneously set up private chambers of commerce so that they can truly represent the interests of enterprises.

Fifth, pay attention to establishing a good relationship with trading partners. In the field of textile trade, we will strengthen the dialogue between government organizations and enterprises of many bilateral governments, strengthen communication and understanding, and conduct cooperation and exchanges while safeguarding the legitimate rights and interests of Chinese enterprises, while achieving common development and avoiding the intensification of conflicts.

Measures Taken by Chinese Textile Enterprises Chinese textile companies cannot rely solely on the strength of the government and industry associations, but should take corresponding measures against their own problems. These measures include strengthening the cultivation of self-owned brand innovation and self-designed talents. Some companies that have independent brands in foreign countries have not caused much impact during this time when the United States and the European countries adopted special safeguard measures. They proved that they can establish their own Brand to get out of the woods. To strengthen the innovation of its own brand, the most important thing is to find design talents who can grasp the international trend. In the short term, companies can solve the problem of brand innovation through some foreign fashion design studios or design tenders. However, in the long run, they still have to cultivate their own design talents. The other is that companies should be able to see the threshold of self-owned brands. If it is determined that the operation of its own brand is a must-go path, it should be invested as soon as possible.

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