“The National Strategic Emerging Industry Development Plan during the ‘12^th Five-Year Program’ Period” has defined the “New Seven Fields” as “energy saving and environmental protection, the emerging information industry, biology industry, new energy, new energy vehicles, high-end equipment manufacturing and new materials”.

In order to cope with the adverse effects such as reduction in external demand brought by the international financial crisis, especially the European debt crisis, a series of measures has been taken.

The first point is to increase the structural tax cuts, especially to promote the pilot projects to replace business tax with VAT, and the projects will cover ten provinces and cities to implement a series of policies and measures to reduce the burden of the small and micro businesses in taxes.

The second one is to implement a prudent monetary policy. The benchmark interest rates for deposit and loan have been lowered for twice, and the interest rates interval has been expanded, while the deposit reserve ratio has been lowered.

The third is to support the technological transformation of enterprises nationally in the large scale for the second time. The central government has invested 26.8 billion yuan in discount interest loans into the technological upgrading of enterprises.

The fourth one is to encourage private investment. At present, folk investment proportion of the investment accounted 62% in the total fixed assets investments, with a higher growth rate than state-owned investment.

The fifth is the implementation of the “People-Benefit Project of Energy-Saving Appliance”.

The sixth is to strengthen the infrastructure construction related to people’s livelihood.

These measures have been and will be continuing to play an important role in promoting economic development and structural adjustment, changing the mode of development and improving the livelihood of the people.

How does the regenerated fiber industry seize the development opportunity?

•     The combination of government, production, learning, research, and application. Under the guidance of government, production, learning and research are to closely cooperate to strengthen the training and education of the national environmental protection consciousness. It is to establish a new operating form of the fiber material from recovery, production, to integrated application, which focuses on the expansion of new areas from the application of waste textiles in breadth and depth, to truly realize the “urban mine” value.

•       Adhering to the “Going Out” Strategy. The focus is the construction of marketing channels. Attention should be paid to the outer layout construction of both raw materials and products, especially to strengthen the construction of foreign raw material bases, do a good job of export product positioning, and develop in a way of stagger competition. The intensive development construction, including equipment, technology, personnel, finance, service, and concept, should be put on a list of foreign development project.

•      The development road of “differentiation”. It is advised that the big enterprises should follow the development mode of scale, specialization, and integration, as well as take a crosswise development model and extend to the upstream and downstream. While the small enterprises should rely on the stagger competition to take a way of market segments such as small variety, personalized, best quality, special varieties.

•       Active study on the industrial gradient transfer direction. Enterprises in the East are suffering high costs affected by the environmental indicators, land, finance and taxation, energy, and labor, high cost, while the Midwest sees relatively low costs. But the imperfect supporting industries affect the transferring speed. So is the transfer of Southeast Asia.

•      Full use of the advantage of new equipment. Combined with the elimination of backward production capacity, the enterprise should carry out technical transformation that makes full use of the significant improvements from new equipment and technology, in order to greatly reduce the cost of investment, and cut down the operating costs. It will show more advantages especially in the energy-saving and emission-reduction, water saving and consumption reduction, as well as cleaner production.

•               Active tracking of new product development and production. The development pattern of global chemical fibers is changing, from the previous “take-ism”, “fast-food” growth and passive development to such a pattern mainly as buyers’ market and the internal market supplemented by the stable external market. New product development must keep up with the demands of a new age.

•       The opportunities brought by the capital market should be focused on. The convenience of merger and reorganization will help reduce the malignant competition, and improve industrial concentration.

•       Full understanding of the periodicity of the industry (3-5 years). The period of industrial upgrading and technological progress is synchronized with the industry cycle, and enterprises should establish the corresponding provincial, municipality, or national engineering technology centers according to their own situation. Based on the combination of production, learning, research, and application, comprehensive utilization of waste bottle flakes and waste textiles should be developed, introduced, and promoted. The advanced and applicable technology as well as demonstration projects is to be used into the improvement of high-quality, high-efficiency, and high-profit, as well as closed and innocuous production. The comprehensive utilization technology roadmap of waste bottle flakes and waste textiles should be determined for the formation of waste textiles cascade utilization technology supporting system.

•       Focus of the power of brands. The construction of brand, logo, standard, and authentication is the key to the status of industrial social images, as well as one of the soft clauses for the establishment of the industry threshold. We can, together with domestic and foreign suppliers, build a green low carbon textile market to expand the basic market, enhance high-end market share of the cyclic chemical fiber products through cooperation among well-known brands, improve reputation of the cyclic chemical fiber products through system and product standard certification, and upgrade the social reputation and international influence of China chemical fiber circular economy alliance through public service advertisement, exhibition, international cooperation, and promotion of concept of chemical fiber circular economy.

•      Threshold design of the industry. The design principle focuses on the development and improvement of the existing industry. Some mandatory index such as energy-saving and consumption-reduction, water-saving and emission-reduction, etc. are to be set for the target of reducing secondary pollution and secondary emission to reach cleaner production. The flexible index such as the construction of brand, logo, standard, and certification can be used to enhance the management level of enterprises. The ultimate end of regeneration threshold design is to eliminate the backward production capacity and promote the development of the industry.

•      Improvement of the energy-saving and emission-reduction ability, and alleviation of the contradictions between resources and environment accumulated in the development of regenerated chemical fiber and textile industries. The innovation and integration of energy-saving, emission-reduction, consumption-reduction, and water-saving technologies can be used to form green and sustainable fiber regeneration and recycling technologies for lower comprehensive energy consumption. The re-use rate of normal water will be over 90%.

•       Industry self-discipline. It is asked to start from production self-discipline and price self-controlling, and then gradually transit to development self-discipline. It is also a must to carry out a wide range of activities related to the integrity of enterprises and legal education to guide enterprises in terms of honesty, occupation morality, and law abiding as well as orderly participation in the competition.

•      Creation of industrial strategic alliances of technological innovation. It is to take enterprises as the main body, and the market as the guidance for the integration of such related departments in the field of comprehensive utilization of waste textiles as industrial organizations, research institutions, intermediaries (certification, standards, logo, etc.), enterprises (upstream and downstream, equipment, accessories, etc.). Efforts should be put together to build a technological innovation system for comprehensive utilization of waste textiles.