Win-win Future, A global silk road era of China textile industry!
Reviewing the year of establishing China Textile Go Global Union
Jan 17, 2018 ｜ by
2017 is an extraordinary year. The successful commencement of the 19th National Congress has attracted the attentions of the whole world. The construction of the “Belt and Road” enjoys popular support and surges the world. With the most historical origin of the “Silk Road” and as the indispensable part of global economy, China Textile Industry plays the vital pioneering function in the year of “going global”.
In 2017, a series of domestic and overseas textile industrial connection activities have been held to confront the whole word and the future. In the year, as the sponsor of the international layout in Chinese textile industry, China Textile Go Global Union connects actively and promotes steadily. In 2017, China textile enterprises looking into the future took root locally and had overall arrangement throughout the whole world. In 2017, the encouraging and endeavoring Chinese textile industry was integrated into the global industrial chain and constructed the new situation of international competition.
Encouraged by difficulties, we carry forward our cause and forge ahead into the future. We trace after the past steps on the road of “going global”, thus expanding our new journey of the “B&R”.
Boost the textile industry actively and devote in the “B&R” construction
Since 2017, China’s textile industry integrated into the “B&R” construction more actively, took positive and frequent “actions”. This was benefited by the fact that the overseas overall arrangement of Chinese textile enterprises has already taken shape preliminary. As a result, the “going global” path for China’s textile industry became even more smooth. Various parties devoted their biggest sincerity to promote China textile industry to step into the international market and have overall arrangement globally.
Since the beginning of the spring festival in 2017, China National Textile and Apparel Council announced the official establishment of “China Textile Go Global Union” (hereafter named as “Union” for short” in Shanghai in March. The Union was approved by National Development and Reform Commission and led by China National Textile and Apparel Council. Its sponsors include the backbone textile garment enterprises of domestic and international development, specialized organizations and local organizations of textile whole industrial chain. The Union has a total of 88 allied members. The secretariat of the Union is set in Textile Industry Branch, China Council for the Promotion of International Trade. The secretariat is responsible for the detailed work of the Union. This is an important measure of China textile industry to integrate into National the “B&R” construction. It also symbolizes the great transition of the China textile industry to transform from export promotion into equalized export and international production capacity cooperation.
The Union carries out work embracing the construction of three service systems, which are respectively “bridge coordination”, “investment and promotion” as well as “information research”, with a purpose to provide service for the enterprises in the Union to “go global” in a better and healthier way.
As a platform to carry forward the “B&R” international production capacity cooperation, the Union possesses the authorities of filling the management system of NDRC international production capacity cooperation project and browsing the international production capacity cooperation projects of the whole textile industry. After consulting the conditions of the allied enterprises and the projects of relevant specialized associations, the secretariat conducted declaration to 23 key projects of the textile industry. The projects included in the key project library of the management system will obtain the priority support of national policies.
Moreover, the Union also participates in the research of several subjects of the Ministry of Industry and Information Technology. It has attended the seminars about the industrial distribution of the countries along the “B&R” held by the Industrial Policy Division of MIIT and assumed specialized authorization tasks for several times. It carried out research on “Situation and Strategy of Textile Industry in Foreign Trade Investment” to illustrate the latest developments of the textile industry in foreign trade business, the domestic and overseas situations confronted by import and export of the industry, expectation of the future international layout tendency and so on. It completed the report of “Research on Textile Development Environment and Investment Opportunity in Southeast Asia Region” to predict the opportunities and risks of our industry to invest in Southeast Asia countries. The research achievements have been compiled into A Prospect of the Development Environment and Business Investment of the Textile Industry in Southeast Asia, which has already been issued to the whole industry. Meanwhile, jointly with Ethiopia Investment Commission(EIC), it published White Book about the Investment Opportunity in Ethiopia Textile Industry.
Up to the end of November, there had been 104 members in the China Textile Go Global Union. Regarding this circumstance, Xu Yingxin, Vice President of China National Textile and Apparel Council, and Executive Vice President of CCPIT TEX, expressed that so many allied members joined together, united with one heart and developed together with the appeal of CNTAC. The entire union is actually a destiny community of textile internationalization, a combined fleet of going to sea together. At present, the backbone enterprises of the industry had very clear route in conducting positive interaction between cross-country production capacity arrangement, global configuration of qualified resource and domestic industrial transformation and upgrading. The Union is playing a positive role in leading and serving the members in carrying out the “B&R” production capacity cooperation and qualified resource cooperation.
With this as the chance, a series of “going global” actions of China textile industry are carried out with unprecedented speed and efficiency.
On April 23rd - 26th, organized by the Union, the delegation of China textile and clothing entrepreneurs visited Myanmar and Vietnam successively, so as to have deep and detailed investigation and research to the current situation and investment environment of the textile clothing industry in the two countries. During the trip, they comprehended the development conditions of the China-invested enterprises locally. Moreover, they conducted field investigation to the Thilawa Special Economic Zone in Myanmar, Singapore Industrial Park, Fudong Industrial Park in Vietnam, thus exploring the path for China textile enterprises to seek for development in Myanmar and Vietnam.
On April 27th, the Union organized and coordinated Uzbekistan Light Industry Holding Company and Jiangsu Jin Group to hold “China-Uzbekistan Textile Industry Communication Seminar” in Beijing. Over twenty representatives from textile associations and enterprises attended the seminar. The two parties conducted deep discussion as to the two countries to further enhancing business and investment cooperation in the textile industry. Moreover, the two parties had thorough communication as to the problems such as the latest political support of Uzbekistan government to the textile industry, wage level of the labor, schooling and the quality standard of cottons in Uzbekistan and so on.
On May, 12th, because of the positive planning of the Union, the prime minister of Ethiopia made a special trip to meet with the representatives of entrepreneurs in the textile industry during his visit to China, thus discussing the new cooperation opportunities in China-Ethiopia textile industry.
On April 22nd - 26th, the delegation of China textile and garment entrepreneurs visited Morocco and Tunisia to cooperate with local industrial associations, so as to promote our textile and garment enterprises to have business connection with the local superior enterprises and explore cooperation models.
At the end of April, one member of the Union - Wuxi Yi-mian Textile Group Co.,Ltd. (hereafter named as “Wuxi Yi-mian” for short) conducted specialized investment investigation to Ethiopia. On May 26th, with the promotion and witness of CNTAC, on the signing ceremony of key investment projects of Wuxi state-owned companies held in Wuxi, the member of China Textile Go Global Union - Wuxi Yi-mian sent its president - Zhou Ye to sign the official investment MOU with the counsel general of Ethiopia in Shanghai - Mulie Tarekeng. On November 2nd, Wuxi Yi-mian signed investment agreement with Ethiopia Investment Committee in Wuxi officially.
On June, 5th, the delegation of CNTAC visited Ethiopia once again and conducted investment investigation. This investigation was the third time for the leaders of CNTAC to send enterprise delegations to go to Ethiopia for investment investigation after 2015 and 2016. On June 26th - 28th, China Textile Go Global Union, CCPIT TEX and CNGA women’s wear special committee, together with five China qualified garment brands and enterprises, visited the key town of high-end garment brands and manufacturing in Italy - Vicenza to explore the connotation of the strong textile and garment country.
On July 18th - 21st , the delegation of CNTAC visited the state governor of Arkansas - Hutchinson and had a meeting with the high management groups of its Economic Development Committee. This is the second conference of the high management groups of the two parties since October in 2016, when the state governor of Arkansas - Hutchinson visited the leaders of CNTAC. At the beginning of November, the state governor of Arkansas - Hutchinson led delegation to visit China. The president of the Union - Gao Yong and the Executive Vice President - Xu Yingxin had an official meeting with the delegation.
On September 7th, 2017 “Go Global” conference of China textile industry was held in Nanjing, Jiangsu province. This conference themed on “Rooted in China, Eye on Global”. It not only received a lot of attractions, but also won rich fruits.
The conference gathered representatives of the governments and relevant institutions from Ethiopia, the United States, Cambodia, Bangladesh, Sri Lanka and other countries and regions, as well as the delegations from the backbone enterprises, overseas investigation institutions and industrial organizations of the global textile industrial chain. The representatives of various circles not only comprehend the positive and sound fundamental policies of the states to industrial international layout, appreciate the investment environment and industrial space of overseas countries and districts in the aspects of policy, politics, economy, taxation, trade and so on, but also harvest the experiences of the “going global” pioneers in China textile industry, thus further stimulating the confidence and determination of the substantial textile enterprises to “go global”, promoting the sound interaction of the “B&R” global arrangement.
In the last ten-day period of September, the delegation of China textile and garment entrepreneurs visited Hungary and Romania to conduct in-depth talks with the industrial organizations, such as the local garment association, introduce the present development condition of China textile industry, and discuss about the future cooperative space and detailed cooperative fields for China textile industry with the textile and garment industries in Hungary and Romania.
On November 15th - 19th , the delegation of CNTAC visited Ethiopia once again to conduct themed investigation to Ethiopia and South Africa. As the cooperation with Ethiopia continues to be intensified, the middle and lower stream industrial chains of Ethiopia tend to be complete. This investigation aimed to explore the cooperative possibilities of the upper stream fields, such as industrial and chemical fiber textiles and so on. In the short three years of China-Ethiopia cooperation, CNTAC visited Ethiopia with delegations for four times, which has promoted the continuous improvement of the local textile and garment industry in Ethiopia. It can reflect the perspectives and programming of CNTAC to the cooperation of the two parties.
On November 20th - 22nd , the delegation of CNTAC visited South Africa and held in-depth discussion with the business investment and development organization of South Africa Government. During the period, the relevant parties of South Africa expressed their aspirations to attract China textile and garment enterprises, especially the upper stream textile fabrics enterprises to invest in South Africa.
In the short period of less than one year, the Union never stops working; the China textile industry never stops going global. As to China textile enterprises, dedication to the “B&R” construction has become the inevitable choice for the enterprises to realize international development and promote the global industrial arrangement. The “B&R” construction has started a journey for the China textile industry. It will undoubtedly innovate new development opportunities, seek for new development dynamic forces and explore new development spaces.
Make investment to accelerate the establishment of the new competition strengths for China textile enterprises in overseas arrangement
Through repeated communication, interaction, investigation and exploration, more and more countries and regions along the “B&R” realize that the opportunity for the textile and garment industry to have capacity transferring. They extend olive branches to China textile industry successively and express their supports and gratitude to works of CNTAC and Union.
We would like to take Ethiopia as an example; it pays great attentions to the cooperation with China textile enterprises. It not only lists the textile and garment industry as the key development industry of the state, but also establishes China Affairs Offices in the Financial Department, Customs and Investment Committee and other governmental departments, so as to provide assistance for China enterprises to invest and cooperate in Ethiopia.
On the meeting held last May, the prime minister of Ethiopia - Hailemariam expressed that: Ethiopia is very grateful for the support of CNTAC to the development of the textile industry in Ethiopia. It always holds the attitude of warm welcome to China textile enterprises to invest in Ethiopia.
From the perspective of “going global” in 2017, the awareness of the backbone enterprises in China textile industry to conduct active international layout has been improved significantly. They carry out investment and acquisition of the upper and lower stream qualified resources of the industrial chain, advanced research ability and technology, terminal channel and other fields with the global horizon.
For example, Jiangsu Tianyuan succeeded in entering into the United States with the intelligent manufacturing path of garment. In sharing experiences, the president of Jiangsu Tianyuan Garment Co. ,Ltd. - Tang Xinhong said that: the highly intelligent production line of Tianyuan combined with Chinese wisdom and realized made in US. It not only cooperates with the top research institute Softwear to achieve key breakthrough, but also forges different products with different production combinations, thus ensuring the international competition strength.
The president of Jiangsu Huarui International Group - Kang Yihua expressed that: “go global” avoids the business barrier and reduces the manufacturing cost from one hand, establishes the sales network, logistics channel and research center on the international market of product marketing on the other hand. Through the optimized configuration of the resources of various steps, such as manufacturing, research and development, logistics, distribution and marketing and so on, it has integrated the international and domestic markets effectively.
As a matter of fact, throughout the year, with the positive action of the Union and the promotion of various parties, the overseas investment of China textile industry is accelerating. The enterprises have obvious enhanced activeness in carrying out international layout, with both width and depth being expanded.
Over 20 China textile enterprises represented by Sunshine, Huafang, Lianfa, Wuxi Yi-mian, Wuxi Jinmao, Guangdong Huida have signed investment MOU or official agreement with Ethiopia successively. Some of the projects have already been settled. The cotton spinning investment of Texhong, BROS Eastern, Huafu, Youngor, Luthai, Xindadong, Yulun and other enterprises in Vietnam has exceeded 2.5 million spindles. Shenzhou International, Jifa, Dongdu and other large-scale knitwear enterprises have basically constructed the order receiving pattern of close coordination between domestic and Southeast Asian capacities. In France, Italy, Australia, the US, Canada, New zealand and other countries and regions, China textile enterprises integrate high-quality resources of the global industrial chain actively. Thereinto, Ruyi’s successful acquisition of SMCP Fashion Group in France has attracted the attention of various parties. On the path of “going global” centered on cooperation and win-win, China textile enterprises keep in mind the original intentions and put efforts to advance bravely, so as to share the benefits together on the road to success.
Looking into the future “enterprise + union”, China textile industry still has vigorous dynamic force
Since the implementation of the Belt and Road Initiative, as the continuous intensifying of political communication, facility interconnection, unimpeded business, capital accommodation and linked popular mentalities, the textile industry benefits a great deal in the process of “going global” for carrying out global layout and capacity cooperation.
Looking into the future, Gao Yong expressed that the dynamic force for China textile industry to develop in China is still plentiful. The principle and emphasis of the next international layout of the textile industry lie in:
The first is to adhere to the principle of positive and stable international layout; the second is to have full release of the positive dynamic force of international layout to support the strong textile country construction. The international layout of the textile industry has powerful support to the strong country construction and has sound interaction with the domestic industrial transformation and upgrading. The textile industry in China can realize the cross-country integration of the industrial chain through international layout and the status improvement of the global value chain of the industry, achieve connection with the global market through global resource, cultivate a batch of cross-country manufacturing enterprises and fashion groups rooted in China. Meanwhile, it will also drive a batch of developing countries to realize win-win development. It is the deserved duty for our industry to be listed in the strong countries in the dimensions of brand, technology, talent and sustainability.
Xu Yingxin also expressed that it is the basis for the whole industry to have high cognition of Chinese native. Meanwhile, it is the important support for the industry to carry out further transformation and upgrading as well as construct the strong textile country to grasp the “B&R” opportunities and take initiative actions to connect and cooperate with the global high-quality industrial resources. Mutual benefit and win-win result can stay stable and develop further. Being open and tolerant enables to join hands and work with one heart.
As the representative of the group interests of China textile industry, CNTAC will always put positive and great efforts to encourage and support China textile backbone enterprises to carry out global layout, boost a batch of China textile cross-country enterprises to emerge and grow. The Union will be diligent in devoting itself to help its members to “Go Global” in a better and healthier way, assuming the basic responsibility in guiding the conformity between marketization enterprise investment and the “B&R” initiative promotion, constructing the smooth channel between domestic preferential financial resource and overseas financing of the enterprises, thus enabling the Union members and even China textile industry to connect with the overseas high-quality resources, promoting China textile industry to step into the international layout era more stably.
