The 12th Five Year Program for Textile Industry (2011-2015)– Editorial Edition (Part Ⅰ)
May 07, 2012 ｜ by
Executive summary in retrospect of Chinese textile industry (2006-2010):
The industrial capacity has persistently been upscaled, innovative competence continuously strengthened, industrial structure rationalized to some extent, profits growth realized by a great margin, energy-saving and effluent reduction accomplished with a good result, international competitiveness further fortified, and brands strategy implemented with initial success.
The 12th Five Year Program for Textile Industry (2011-2015) is, as in the case of previous 5-year growth projections, constructed with four parts: guiding principles, growth targets, important tasks and feasible policies. Restructuring, innovation, brands and sustainability are underlined as significant content in the five-year blueprint.
China Textile editors start from Feb. Issue to provide a readable coverage of the Program in a sequent episode.
Review of Work in the Eleventh-Five Plan years and Prospect of Work in Twelfth-Five Plan years
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Achievements during Eleventh-five years
Scale and profit continued to step up.
In 2010, the industrial output value of national textile industry enterprises above-designated size reached 4.765 trillion yuan, realizing an average annual growth of 18.2% during the “Eleventh Five-Year” period; 1148 million people was employed, with an average growth of 2.1%; the main business income achieved 4.651 trillion yuan, with an average annual growth of 19.2%. The industrial added value accomplished an annual growth of 12.6% on average; total profit amounted to 287.5 billion yuan, with an average annual growth of 27.7%.
In 2010, yarn production of the above-designated size enterprises accomplished 27.17 million tons, with an average annual increase of 13.4% in the Eleventh –Five Years period; chemical fiber production reached 30.9 million tons, with an average annual growth of 13.2%. The output of chemical fiber, yarn, cloth, woolen cloth, silk, linen textiles, apparel and others ranked first in the world. Industry-wide fiber processing volume reached 41.3 million tons, an average annual growth of 9.0%, accounting for more than 50% share of global fiber production.
In 2010, China’s textile and apparel export realized 206.5 billion U.S dollars, with an average annual increase of 11.9% during the Eleventh Five year period. The proportion of general trade increased from 69.7% in 2005 to 74.4% in 2010; share of global textile and apparel trade accounted for more than 30%.
Industrial reconstructuring was intensified.
During the Eleventh-Five year period, the proportion of three main fiber consumption—apparel, home-textiles, industrial textiles was adjusted from 54:33:13 to 51:29:20; industrial textile applications continued to expand. Chemical fiber occupied 70% in the textile materials, with a rise of 5% compared with the time at the end of Eleventh Five Year. Chemical fiber product differentiation rate reached 46%, with an increase of 15%, basically meeting to the rapidly growing demand of textile industry for raw materials. The average annual growth of fixed asset investment in central and western regions reached 27.2%, the proportion increased from 23% in 2005 to 48% in 2010. The gradient transferring process of textile industry from the southeast coast to the central and western regions was speeding up.
Self-innovation and technology equipment capability keep improving.
The independent innovation capacity of China’s textile industry continued to increase; a number of hi-tech and new technologies achieved substantial breakthroughs, meanwhile a large number of scientific and technological achievements done by independent research were widely applied in the whole textile and apparel industry. Carbon fiber T300, aramid fiber 1313, high-performance PSA, ultra-high molecular polyethylene, polyphenylene sulfide and basalt fiber accomplished great breakthroughs in industrialization. 22 scientific and technological achievements were awarded “National Science and Technology Award”, among them Analysis of Engineering System Integration of an Annual Output of 45,000 tons of Viscose Staple Fiber and Short and Efficient Process Embedded Composite Spinning Technology and its Industrialization won the first prize. The market share of domestic textile machinery increased from 61.7% in 2005 to 78.1% in 2010. Up to the end of 2010, the number of authorized enterprise technology center reached 38.
Technology and relevant equipment updated faster; backward production capacity was gradually faded against the backdrop of market mechanism; industry-wide technology and production efficiency improved steadily. More than one –third of technical equipment of above-designated size enterprises paralleled international advanced level. New product output value of enterprises above the designated size in 2010 increased by 2.4 fold higher than the value in 2005. Overall labor productivity reached 110,000 yuan per year, increasing 1.1 times compared with 2005.
Solid progress in conserving energy, reducing emissions and protecting the environment was made.
A number of new technology related to energy saving and resource recycling were widely used in the whole industry. Technology of differentiated direct spinning and new spinning cooling technology was promoted in the chemical fiber industry, efficient short process of printing before dyeing processing was widely applied in cotton and cotton blended fabric. The ratio of waste heat recovery, water recycling, mercerized light alkali recovery and other comprehensive resource application technology has reached to 50%. Textile fibers re-use technology upgraded step by step, which recycling textile fiber production exceeded 400 million tons. Such re-use depended on bamboo pulp, a renewable, biodegradable stalk pulp as raw material.
Objectives and tasks of Eleventh-five year were completed. The overall energy consumption of textile industry’s added value decreased about 32%, the quantity of fresh water per one hundred meter in cloth dyeing decreased from 4.0 tons to 2.5 tons, water recycling ratio in dyeing industry increased from 7% to 15%, sewage emissions of textile industry’s added value decreased by over 40%.
The role of brand building was intensified.
Accelerating brand building won a wide recognition in the whole society; internal power of brand building significantly increased, external environment for brand building development continued to improve. During the Eleventh-five year period, China’s textile industry fasten its transformation from processing and manufacturing products to design and creation, resulting in a number of innovative design parks. Textile and apparel exports changed from OEM to OBM, the brand value of yarn, fabric and accessories were warmly welcomed in the market. China’s textile and apparel brands were gradually stepping into the international market, among them, 143 won classic brand in the apparel category, and 45 home-textile brands were considered as famous brand, in addition, domestic consumers’ awareness of brands were increasing day by day.
Opportunities and Challenges
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Opportunities
In terms of the global market, as the economy would rebound from the global downturn gradually, the textile and apparel market demand would still preserve an uptrend significantly.
USA, EU and Japan are the three main export markets of Chinese textile and apparel products. However, the newly-emerged markets worldwide also possess great potentials, which could be beneficial for Chinese textile and apparel industry to explore more diversified markets markedly.
Furthermore, new energy, new material, as well as the eco-friendly industry see prosperously development around the whole world, offering numerous opportunities for Chinese textile and apparel industry to enter new consumption fields and markets.
The global financial crisis, to some extent, promoted the fast development of technological innovation and low-carbon technology. Besides, in China, textile and apparel industry has strengthened the tightly integration of high-new technology (such as the information technology, bio-technology, etc.,) with traditional textile and apparel industry, enhanced the R&D and the application of the regenerated raw material, clean production and recycle utilization technology, which could provide sufficient opportunities for the whole industry to improve overall competitiveness.
Along with the trend of economic globalization, advanced manufacture technology, strong R&D ability, high-end textile machineries and equipments, etc., which could be defined as the icon only for the developed countries in the past, nowadays also could be the advantages of the newly industrializing economies, leading to a further adjustment of the international textile industrial structure significantly.
On the other hand, Chinese textile and apparel industry, after years of structural adjustment and upgrading, has already owned the favorable foundations to adopt new technologies and improve the industrial creativity, providing more confidences and guarantees to join in the competition in the global markets.
In terms of Chinese market, domestic consumers show higher-level requirements and demand of textile and apparel products as well as the market. To date, in China, for the rural residents, which take a proportion of 54% of the whole nation, the average payout for apparel was 18% of that for the urban residents, so that the increase of the urbanization rate in China could enhance the fast growth of apparel consumption. As the industry has strengthened the application of the new material and technology and advocated products innovation, the new modern lifestyle, which emphasizes green, low-carbon, civilization, and fashion, would explore more potential of our domestic consumption markets.
Regional adjustment would be one of the main tasks for Chinese textile and apparel industry. In China, nearly 80% of the production capacities are located in the eastern coast areas. Because of the shortage of resource and environment, as well as the regional economic limitation, the industrial transfer from the eastern area to the middle and western areas become more and more necessary.
During the 12th Five-Year-Program, the whole industry should insist on promoting the shift of textile and apparel industry, well performing the regional advantages both in the eastern and middle and western areas, and driving the regional structural adjustment harmoniously.
Besides, the fast growing newly-emerged industries also create beneficial conditions for industrial development. Strategically newly-developed industries, such as the R&D of high-technological fiber and its composite material, the manufacture of high-end textile technological equipments, technical industrial textiles, and so on, would be paid more attention to during the new five year period.
Meanwhile, the development of these strategically newly-emerged industries could further enlarge the application of textile products in the fields of transportation area, new energy, medical care, safety protection, environment protection, aerospace and etc.
China is the country with the largest number of working-age population around the whole world. During the 12th Five-Year-Program, to develop a modern industrial system with strong ability to improve the employment rate could be one of the main targets.
Recently, the number of employees working directly for the Chinese textile and apparel industry could reach 20 million; moreover, according to the statistics, each year, the annual utilization of domestic-made natural fiber could arrive at nine million tons, which is related with nearly 100 million farmers’ life. In one word, textile and apparel industry in China plays an important role to increase the employment rate, to solve the issues related with agriculture, farmer and rural area (basically means to develop agriculture, improve the life of farmers and speed the development of rural areas), and promote the urbanization advancement significantly.
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Challenges
During the 12th Five-Year-Program, Chinese textile and apparel industry also would face some challenges in the international markets. The industry not only would cope with the competition from developed countries of the global top-end industrial chain, but also would confront the fierce contest from the developing countries of the global low-end industrial chain
For the developed countries, the superiority advantage of the advanced technology, brand as well as the comprehensively industrial chain makes them occupy a comparatively active role in the global markets.
Correspondingly, for the developing countries, the advantages of labor cost, resources, trade environment and so on would support their textile and apparel industry to gain the chance to develop rapidly. Meanwhile, due to the devaluation of local currency in the developing countries, arousing competition with domestic Chinese textile and apparel products in the middle and low end markets.
Besides, due to the global financial crisis, trade protectionism emerged in developed countries gradually, some countries apply trade remedies and technological trade barriers to restrict the import from other countries. So that, in the following years, the instability of the international trade environment would cause affect to the Chinese textile and apparel industry in the global markets, and the RMB exchange rate also would bring influence to the global industrial competitiveness obviously.
Textile raw material would be another influential element. Recently, nearly 30% of cotton for Chinese textile and apparel industry are imported from abroad. As for the man-made fiber industry, nearly half of the EG, PTA, CPL, AN, and so on need the import from the overseas markets. Moreover, considering about the influences from the natural climate change, hot money, the fluctuant petroleum markets, etc., the textile and apparel industry in China still would confront several challenges for a sound development.
Domestically, in the process of economic transformation and upgrading, constructional shortages of labor in the textile industry are on the rise restricted by working conditions and wages as well as the accelerated aged tendency of population. Along with the quickened pace of industrial transformation, the number of local employment in the Midwest has increased, and the labor output to the east has gradually reduced, therefore, enterprises in the east are suffering significant labor shortages. Meanwhile, the accelerated construction of the resource-saving and environment-friendly society will exert higher demands to the textile industry in terms of energy conservation and emission reduction as well as the elimination of backward productivity.
Problems in the textile industry itself are still prominent, which are mainly the following aspects. The scientific and technological capability for innovation should be improved, since there is a certain gap compared to the international advanced level in terms of high-tech fibers and new equipment technology. The pace of building their own brands lag behind and it is urgent to improve the product added value and the industry value chain. It is still an arduous task in energy conservation and emission reduction as well as the elimination of backward productivity, and the advanced technological promotion and promotion needs to be strengthened. The homogenous duplication of similar projects still exists, and it is burdensome to adjust and optimize regional distributions. It is a must to establish a more reasonable domestic cotton management system, and there are still many problems in the system and mechanisms which restrict the scientific development of textile industry. During the “12th Five-Year Program” period, we must scientifically determine and accurately grasp the development trends, make full use of favorable conditions, and speed up transformation and upgrading, to promote the textile industry into the innovation-driven development track.
The guiding ideology and development goals
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The guiding ideology
In accordance with the “Twelfth Five-Year Program Outline for National Economic and Social Development”, developing a modern textile industry of structural optimization, advanced technology, environmental protection, high added value, and high capability of arranging employment to lay a solid foundation for achieving textile power.
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Development goals
The industry continue to grow steadily
The average annual growth of the industrial added value of the textile enterprises above the Designated Size will be 8%, two percentage points of rate of industrial added value. Till the end of the “12th Five-Year Program” period, the industry’s total exports will reach 300 billion USD, an average annual increase of 7.5%. The industry-wide fiber processing are to be totaled to 51.5 million tons with an average annual rising of 4.5%. The industry employment will remain at around 20 million.
The industrial structure to be further optimized
Till the end of the “12th Five-Year Program” period, the ratio of apparel, hometextile, and technical textile fiber consumption will be 48:27:25. New product development capabilities are to be further enhanced to enrich product varieties and gradually increase the proportion of domestic sales, meeting the needs of different consumption levels. The total output value of textile industry in the Midwest is to account for 28% of the whole country. Chemical fiber industry concentration is further increased, and there are more than 20 enterprises (groups) with annual output value of over ten billion USD.
Capability of innovation to be significantly improved
The labor productivity of the enterprises above the Designated Size will see an average annual growth of about 10%, while the proportion of research and experimental development expenditures in the main business revenue will be more than 1%. We should master the core technology of a number of new high-tech fiber development and application as well as the development and manufacturing of advanced equipment, helping the mainstream technique, technology and equipment in the industries of cotton, chemical fiber, and apparel reach the international advanced level.
Brand building to make new breakthrough
The product quality is to be further improved, and brand-building capabilities will be significantly enhanced, five to ten brands with international influence and 100 well-known brands with higher awareness in the domestic market. There will be 50 branding enterprises with annual sales of over ten billion RMB, while the proportion of brand product exports is to reach 25%.
Energy conservation and emission reduction and resource recycling to reach a new level
Compared with 2010, energy consumption per unit of industrial added value will see a reduction of 20%; industrial carbon dioxide emissions intensity decrease 20%; water consumption per unit of industrial added value lower 30%; and discharge of major pollutants decrease 10%. Recycling and reuse system of textile fiber will be initially established, achieving about eight million tons of recycled textile fiber.
Column 1: Major Index of Textile Industrial Development during the “12th Five-Year Program” Period
|
Category |
Index |
2010 |
2015 |
Average annual growth（%） |
|
Industrial growth |
Industrial added value
(Above the Designated Size) |
- |
- |
8 |
|
Gross export (billion USD) |
206.5 |
300 |
7.5 | |
|
Total processing fiber（million tons） |
41.3 |
51.5 |
4.5 | |
|
Structural adjustment |
Proportion of apparel, hometextile, and technical textile fiber consumption（%）
Of them： Average annual growth of apparel fiber consumption
Average annual growth of hometextile fiber consumption Average annual growth of technical textile fiber consumption |
51:29:20 |
48:27:25 |
-
3.0
3.0
10.0 |
|
Proportion of export delivery value in the sales value of enterprises above the Designated Size（%） |
18.6 |
14 |
[-4.6] | |
|
Proportion of the gross output value of textile industry of the Midwest in that of the whole country（%） |
17 |
28 |
[11] | |
|
Technological
progress |
Labor productivity
(Above the Designated Size) |
- |
- |
10 |
|
Proportion of research and experimental development expenditures in the main business revenue
(Above the Designated Size, %) |
<1 |
>1
|
- | |
|
Sustainable development |
Energy consumption per unit of industrial added value reduced |
- |
- |
[20] |
|
Industrial carbon dioxide emissions intensity decreased |
- |
- |
[20] | |
|
Water consumption per unit of industrial added value decreased |
- |
- |
[30] | |
|
Discharge of major pollutants decreased |
|
|
[10] | |
|
Total recycled textile fiber（million tons） |
4 |
8 |
14.9 |
Note: 1. Accumulative total number of the five years within [ ]
2. Major pollutants refer to chemical oxygen demand (COD) and ammonia nitrogen
