China'S High Growth Textile Industry Suffers From Recession

In 2002, the three major economic indicators of China's textile industry's gross output value, profits and exports reached a record high in the first year of China's accession to the WTO.

By the end of 2010, enterprises above Designated Size of the textile industry had completed 4 trillion and 761 billion 170 million yuan in total industrial output value (current price), representing a cumulative increase of 4.4 times compared with 2000, with an average annual growth of 18.3%, with a total profit of about 287 billion 500 million yuan, 8.7 times higher than that in 2000, with an average annual growth rate of 25.6%.

Reporters learned from the China Textile Import and Export Chamber of Commerce, according to the World Trade Organization statistics, in 2001, China's textile and garment exports accounted for 15.6% of global exports, accounting for 31.7% of global exports in 2009, and expected to reach 33% in 2010, becoming the world's largest textile and garment exporting country.

However, behind the report cards of "high-speed growth" and "the first big power", the textile industry is experiencing pains.

Gao Yong, vice president of China Textile Industry Federation, said that the textile industry's operating efficiency has declined since May of this year.

Starting in October (some products started in August), domestic demand also began to decline due to the impact of the international financial crisis and domestic inflation.

Raw material price fluctuation is the main cause of labor pains.

As an important raw material in the textile industry, cotton prices have gone through the roller coaster market since last year. Cotton prices climbed to 30 thousand yuan per ton, and now they drop to more than 19000 yuan per ton.

Textile enterprises are in trouble this year. This year is considered to be a more difficult year than the financial crisis of 2008.

Some analysts say that the cost burden of textile industry has changed little in the past ten years.

At the beginning of joining the WTO in 2001, the main business cost of the industry accounted for 88% of the main business income, and by 2010, the proportion was 87.79%.

But the cost risk control ability of enterprises has not been overall and substantially improved, and has become an "old problem" facing the textile industry.

In addition, the global economic recovery has been slow and variable.

In fact, as early as 2008, similar scenes were staged.

At that time, the textile industry appeared the first negative growth for many years. The global financial crisis caused the textile export demand to shrink dramatically. The operating rate of Jiangsu and Zhejiang textile enterprises was only 40% at the end of October.

"The textile industry has gone through many market fluctuations over the years. The ups and downs of the market economy are inevitable, but we can't stop production without any risk."

The head of a large textile enterprise in Shandong told reporters that enterprises should have measures to hedge risks such as arbitrage and exchange, so as to reduce relative losses instead of waiting for starvation.

In fact, in the face of market fluctuations, the "big but not strong" feature of the high growth textile industry is revealed.

According to the materials provided by the Ministry of industry to the economic reference daily, the textile industry has experienced rapid growth in the past ten years, and has accumulated a series of contradictions and problems.

Especially as a result of