Since the outbreak of international financial crisis, textile industry in China has been facing profound and complex changes in its development environment. On one hand, global economy is gradually recovering, yet international demand remains low, resulting in an increased unpredictability. On the other hand, Chinese economy is fastening its pace of restructuring and transformation.

 

Chinese textile industry is confronted with higher demand in energy reservation, environmental protection and social responsibilities combined with increased costs of labor and raw materials. Facing with a complex and volatile external environment, Chinese textile industry puts top priorities in tackling various uncertainties and realizing stable and healthy development.

 

Development rate of Chinese textile industry has been slowing down apparently compared with that before the crisis, yet quality of products has been gradually improved and industrial structure is being optimized. In recent years, Chinese textile industrial development gradually features the following characteristics:

 

Growth in industrial economic index: according to statistics, total volume of fiber produced in China textile industry reached 43.1 million tons in 2011, up by 22.8% than that of 2008. The yearly increase rate (2008-2011) is 7.1%, which is down by 3.8 percentage points than that of three years before crisis’s outbreak (2006-2008).

 

Specifically, total fiber production in 2011 is 33.9 million tons, up by 40.4% than that of 2008. The yearly increase rate is 12%.

 

Total export value of China textile and garment was USD 254.12 billion in 2011, up by 34% than that of 2008. The yearly increase rate (2008-2011) is 10.3%, which is down by 7 percentage points than that of three years before crisis’s outbreak (2006-2008).

 

Further optimization of industrial structure: Technical textile industry is growing relatively fast driven by domestic demand and has become the new economic growth point for Chinese textile industry. Production of technical textiles in 2011 arrived at 9.102 million tons, increasing by 50.1% than that of 2008. The yearly increase rate is 14.5%, 7.4 percentage points higher than that of total fiber volume that has been produced. Ratio of fiber volume in garment, home textile and technical textile is restructured by 51:32:17 in 2008 to 50:29:21 in 2011.

 

Proportion of chemical fibers in textile raw materials is continuously increasing. Chemical fiber volume in usage accounts for 73% of the total fiber volume that has been produced, increasing by 10 percentage points than that of 2008. Variety and quality have been optimized. Differentiation rate of chemical fiber in 2011 reaches 50%, up by 12 percentage points than that of 2008. Chemical fiber gradually plays an important role in ensuring supply of raw materials and promoting stable operation of companies and the whole industry.

 

Moreover, textile industry in China is transferring from eastern and coastal areas to mid-western areas. From 2009 to 2011, the sum of fixed-asset investment in textile industry has increased by 34.6% yearly. Increase rate in mid-western areas is much higher than that of eastern and coastal areas. Proportion of industrial output of enterprises above designated level in mid-western areas increases from 14% in 2008 to 19.2% of total. Industrial distribution and structure adjustment is gradually optimized.

 

Continuous improvement in science and technology: Obvious progress has been made in independent innovation and in the development and application of new technologies: industrialization of high performance fibers (carbon fiber, aramid fiber, UHMWPE, etc), improved processing technology and new composite spinning technology. Technical textiles have been wide applied into aviation, aerospace as well as other important projects. Home-made textile machinery has been narrowing the gap with international advanced level and gaining more shares in domestic market.

 

Comprehensive technical upgrading is conducted in textile industry, with increasing use of new technologies and equipment. In year 2011, the proportion of new equipment application in cotton textile industry reaches 76% of the total, up by 8 percentage points compared with year 2008. Water reuse rate of printing and dyeing industry reaches around 25%, up by 15 percentage points compared with year 2008.

 

Textile productivity continues to elevate driven by new science and technology. In year 2009-2011, productivity of enterprises above designated-sized textile rises by 76.9%, reaching an annual increase of 20.9%. Achievement is also made in energy reservation and environmental protection. In year 2009-2011, the average energy consumption, water consumption, annual waste water discharge per unit of added value in the industry drop by nearly 10%, 7% and 7% respectively. Production of reused fibers reaches over four million tons in total.

 

Increased comprehensive competitiveness: Quality of industrial operation and profitability steadily increase. From 2009 to 2011, ratio of production to sales of enterprises above designated level remains above 97.8%. Link between production and sales is smooth. The ratio of operation, management and finance to primary income drops from 6.8% to 5.8%. Average sales profitability increases from 4.5% to 5.5%.

 

Furthermore, export of relatively high added-value products is increasing. From 2009 to 2011, increase rate of China textile and garment’s export price is 26% accumulated, and the yearly increase rate is 8%.

 

Economic operation of textile industry in China staggers and sharply slows down in 2012. Besides, pressures for industrial operation are mounting up by stagnant international market, huge gap between global and domestic cotton prices, increased costs of labor, etc. At the same time, profound issues existent in the industry are becoming thorny amid severe external environment, including urgent demand for increasing technological contribution and innovation capability in SMEs and micro enterprises, energy reservation and environmental protection and mismatch among industrial structure, resources and raw materials.

 

Chinese textile industry faces urgent and arduous tasks and only by deepening adjustment of industrial structure and fastening transformation of development modes, could the industry fundamentally solve the internal challenges and resolve external crisis. According to Wang, Chinese textile industry will mainly focus on the following aspects in improving sustainability:

 

Accelerate science and technology advancement to enhance core competitiveness in the industry: Science and technology advancement is the foundation for sustainable development in China textile industry. In the next few years, key technologies will still be the focuses of industrial R&D. The goal is to make breakthroughs concerning industrial sustainability, such as high performance fibers and technical textiles, composite materials, new bio-fibers, energy-saving and environment-friendly printing and dyeing technologies, and advanced textile equipment.

 

To ensure new strengths of technical innovation, China textile industry stress importance of basic research work: research on theories, standards and basic disciplines, effective integration of scientific and technological resources, smooth cohesions among institutes, industry and market, cooperation between industrial chains and set-up of technological innovation system. Meanwhile, efforts will be made to promote the utilization of new technologies in the industry, particularly, in the SMEs and micro-enterprises in order to encourage enterprises to enhance technological innovation and equipment, introduce new materials, electronic info and advanced technology, and upgrade manufacture quality in the whole industry. In the next 5 to 10 years, productivity of enterprises above designated-sized is estimated to maintain an annual average growth over 10%.

 

Improve self-independent brands’ building and enhance industrial value chain: Building up self-made brands is one of many important routes for realizing transfers from industrial chain to value chain and from product manufacture to value enhancement. After years’ trials, a value system constituted by “Quality, Innovation, Fast response and Social responsibility” has won broad consensus in the whole industry.

 

In the future, industry should work closely with market demands, put into practice of the value system and further improve the quality of products and above four elements within the system. Furthermore, the industry should focus on creativity, design and soul of brand, develop new markets and marketing mode, strengthen the ability to adapt to market, fulfill social responsibilities and realize social values. Meanwhile, industrial associations and organizations should improve public services, creating a better environment regarding market, culture and policy for self-made brands’ development; and should help to cultivate brands with wide international influences and enterprises capable to fulfill domestic demands and progressively improve export proportion of self-owned brands.

 

Break through bottlenecks by developing low-carbon, green and recycle economy: Breaking through the environmental and energetic constraints is another guarantee for further development in Chinese textile industry.

 

In recent years, resource and environmental problems becomes more acute. Dramatic fluctuations in costs of cotton and chemical fibers directly affect the operations of enterprises. Dying and printing enterprises in eastern and coastal areas are confronted with more and more restraints, which have become the bottleneck for the production chain. Combined with increased costs of energies and enterprises’ operation, all the disadvantaged situations could only be reversed by the important strategy--sustainable development.

 

In the future, Chinese textile industry will intensify research and utilization of cleaner, low-carbon, pollutant-control and pollutant-treatment technologies, which could be the technical supports for enterprises to save energies and break through environmental constraints.

 

At the same time the industry should give full play to market mechanism and eliminate backward techniques, technologies and equipment step by step. Industrial organizations should actively improve management, standard system and public services in terms of energy reservation and emission reduction and give full support to enhancement of industrial sustainability. The textile industry in China will fulfill the mandatory tasks given by government in 2015.

 

At that time, the industry is estimated to decrease energy consumption per added value unit by 20%. Dioxide emission intensity will be down by 20%. Water consumption per unit will drop by 30%. Main pollutants emission will be down by 10%. Production of recycled fibers will reach 8 million tons, accounting for more than 15% of the total amount of fiber production.

 

Optimize industrial layout and improve efficiency of resource allocation: According to environmental and energetic conditions in different areas, textile industry in China will fasten the restructuring of regional distribution.

 

Following the thought of “fastening the upgrading in the East, improving modern manufacture system in the Middle and developing with characteristics in the West”, the industrial association will guide textile industry to transfer orderly to the middle and western parts of China, gradually shape a regional divisions and coordination, properly improve the proportion of mid-west parts’ contribution to the whole industry and transferring mid-west’s resources advantages to productivity and competitiveness. Meanwhile, the industry also will fully take advantage of important resources in international market, technology, human resources and raw materials to realize optimized allocations of productive factors in global scope.

 

Improve personnel training and strengthen industrial development: Human resource is the basic drive for maintaining vitality in creativity and sustainable development. The textile industry in China should build up an optimized textile personnel system with high-quality and creative talents, who are leaders in fields of technology, entrepreneurs, and managers. Moreover, the industry needs talents in research, design, sales and management to sufficiently satisfy urgent needs in transformation and innovation. At the same time, the industry should actively improve working environment and management system, optimize training mode, and introduce international personnel, who could contribute to scientific development in Chinese textile industry significantly.

 

Currently, textile industries around the world are facing the same challenges with increasing uncertainties and mounted development pressures against the complex and volatile economic environment. The realization of sustainability has become a common task and important way to tackle current challenges from a global perspective. It is important and necessary for all players to strengthen dialogue & cooperation, learn from each other in order to achieve win-win development. Furthermore, the textile industry in China would like to play an active role in: 

 

Promote dialogue and exchange: Chinese textile industry would establish regular communication mechanism to encourage dialogue and visits among industrial organizations, increase understanding and mutual trust, and create cooperation opportunities.

 

Jointly explore new markets: The textile industry in China has been upholding industrial disciplines, maintaining international textile and apparel trade order and fighting against any form of protectionism. The industry not only organize textile and apparel fairs, fashion activities and establish allied trading & info platform cooperated with partners, but also help to explore new markets, enlarge trade volumes and to establish steady trade cooperative relations with other countries and organizations.

 

Optimize investment environment: The industry encourages Chinese enterprises to “go globally”, setting up bases for raw-material purchase, processing and manufacturing. Besides, the textile industry in China also welcome foreign enterprises to bring advanced technologies, design and marketing approaches to China, would like to increase exchange and sharing of info regarding investment circumstances and policies, and would also strengthen cooperation with other countries in protection of IPR in technology, brand and so on to optimize investment environment.

 

Jointly strengthen efforts on R&D: Textile industry in China would strengthen technological exchange and R&D cooperation based on complementarities of industrial chains. Through dialogue and visits among textile enterprises, institutes and industrial organizations, the industry would focus on joint R&D of new fibers, environmental-protection technologies, equipments in printing and dying and high-function technical textiles. Moreover, the textile industry in China would establish regular long-term cooperation mechanism in innovation to integrate resources with other countries.

 

Cooperate on standardization and testing: The industry would cooperate with other countries to work out general standards of fiber products, product certification, eco-label and regulate dialogue with standardization and testing organizations, and create more opportunities for all parties to take part in the development of international standards.

 

 

China has the most integrated and largest textile industry in the world with high demand in materials, equipment, technology, talents, and the most potential end markets. Textile industry in China has the advantages to develop mutual-beneficial relations with other textile industries around the world. We sincerely hope to strengthen dialogue and actively cooperate with others to expand consensus and realize sustainable development for the global textile industry.