Zhejiang traditional foreign trade industry

Problems and Countermeasures of Zhejiang Textile Foreign Trade

[Abstract] This paper deeply analyzes the problems faced by Zhejiang textile foreign trade, and puts forward effective solutions to these problems.

[Keywords:] Zhejiang textiles, foreign trade, problems, countermeasures

After joining WTO, Zhejiang textile industry has participated in international competition at a deeper level and in a wider scope, and achieved rapid development. In 2004, textile exports accounted for 20. 9%, China is 3. Global 4%. Zhejiang has become one of the major textile export processing zones in the world. At the same time of rapid development, the disadvantages of Zhejiang textile, which wins by quantity, are gradually emerging. In June 2005, the end of textile trade quota system brought new challenges to Zhejiang textile industry.

First, Zhejiang textile foreign trade problems

1. The management mode is backward and the added value of products is low.

The development of Zhejiang textile industry mainly takes the development route of extensive industry and low-end products, and the export growth depends largely on the increase of quantity.

At present, many enterprises still use cheap raw materials and labor costs to expand their scale, engage in extensive management and adopt low-cost marketing models. Less investment in technological innovation and brand creation, insufficient product processing depth and accuracy, low added value of products, slow development of new products, and excessive competition of some middle and low-grade products have seriously weakened the competitiveness of enterprises and hindered the improvement of their economic benefits.

2. Power shortage, rising raw material prices.

In recent years, electricity in Zhejiang Province has become increasingly scarce. Due to the shortage of power supply, intermittent power supply measures are widely used in various parts of Zhejiang, which makes it more difficult for enterprises to arrange production time and ensure timely delivery. Enterprises are afraid of delaying the delivery date, and dare not take orders or postpone the delivery date. While electricity is in short supply, the prices of raw materials are rising. In the past two years, with the rising price of coal, electricity and oil transportation, raw materials such as textile fabrics and cotton yarn are also rising. Due to the rising price of raw materials, the price of AG industrial products is low, and the profits of enterprises are greatly reduced. 3. After the textile passive quota is cancelled, disorderly competition will be intensified.

For a long time, the disorderly competition based on the homogeneous middle and low-grade products and the price war as the main means is more prominent. From 2003 to 2004, China's export textile enterprises soared from 30,000 to nearly 40,000, and most of them introduced foreign advanced equipment at the same time, expanding their scale in a short time. When the product market is saturated, these textile enterprises, which have always won by "large quantity and low price", will often adopt suicide "price war", disrupting the normal business order and endangering the maintenance of the international market. After the cancellation of passive textile quotas, more enterprises, especially small and medium-sized enterprises, will emerge in large numbers, and the problem of disorderly competition may be further exposed.

After the textile quota is cancelled, the foreign trade friction will increase.

Most of the textiles exported by Zhejiang are labor-intensive products, and the export products are basically at the low end of the international division of labor and value chain. Growth mainly depends on "running volume", and the added value of products is low. Coupled with the abundant and cheap labor supply and low cost of export products, it is easy to give people the impression of dumping at a low price. In recent years, our province has been the province most investigated by anti-dumping and safeguard measures. Textiles have always been the focus in the process of trade liberalization. At present, the world's major importers are highly concerned about China's textile exports. After the textile quota is abolished, the major importing countries will replace the quota system with other forms of trade barriers. If the export grows too fast in the short term, it will inevitably break the original market balance, cause market fluctuations, increase market pressure and aggravate trade friction.

Second, Zhejiang textile foreign trade countermeasures

1. Optimize product structure and improve management level.

Zhejiang textile enterprises should make long-term planning, focus on improving international competitiveness, adjust product structure in time, promote industrial upgrading, form a number of leading products with large market share and high added value, and realize the transformation of export growth from quantitative expansion to quality improvement. Strengthening the technological innovation ability of enterprises is the central link in the transformation of industrial structure and growth mode. Encourage large and medium-sized textile enterprises to establish national and provincial enterprise technology centers, increase the proportion of R&D investment in sales revenue, strive to develop patented products, original technologies and well-known brands, and play a leading role in industry demonstration. Establish brand strategy and expand brand export; Accelerate the implementation of the "going out" strategy, use international market resources to improve profit margins and improve enterprise management. 2. Reasonably build energy projects and actively carry out technological innovation. At present, this period is a crucial period for Zhejiang to accelerate its development, and the demand for electricity is quite large. The government should take the bottleneck problems such as imperfect infrastructure and shortage of resources as the top priority of government work. Zhejiang has good economic conditions and rich private capital. Governments at all levels in Zhejiang Province can formulate relevant policies to encourage private capital to participate in energy project construction. While rationally building energy projects, governments at all levels in Zhejiang Province should encourage enterprises to actively adjust their industrial and product structures, and support the promotion and adoption of advanced technologies, equipment and products that are energy-saving, water-saving and environmentally friendly. Through appropriate policy guidance, encourage enterprises to carry out technological innovation, encourage the development of industries with high efficiency, high output, high added value and low energy consumption, strictly control new projects with high energy consumption and high pollution, promote the optimization and upgrading of industrial structure, and encourage the development of products with high efficiency, low energy consumption and low energy consumption. 3. Strengthen industry self-discipline and adopt prudent export strategy.

Textile industry associations at all levels should actively play an organizational role, cooperate with relevant organizations in China under the guidance of the macro-policy of China Municipal Government, and enhance the service functions of industry organizations in policy propaganda, information collection, risk early warning and market development. When similar enterprises and similar products compete in the same international market, the guild can balance various interests, help enterprises to formulate scientific and reasonable pricing, marketing and competition methods, and prevent some enterprises from competing for price reduction, tearing each other, commercial fraud and other "cannibalistic" products from destroying the market, thus maintaining the fair order of the two markets at home and abroad.

4. Establish an early warning mechanism for textile foreign trade friction.

With the cancellation of textile quotas, trade disputes with anti-dumping as the main form will surely intensify. Therefore, Zhejiang textile industry should further improve the monitoring, early warning and countermeasures of textile export trade. For places where the market is saturated and may face anti-dumping, enterprises should establish an active restraint mechanism to reduce the export growth rate to the main sales market and suspend it when it reaches a certain proportion. Conscientiously implement the national policies and systems on textile trade, standardize the export behavior of enterprises, and find and stop unfair competition in time. Reasonable use of international rules to safeguard the legitimate rights and interests of the industry and enhance the ability of enterprises to participate in international competition. Support enterprises to actively respond to foreign anti-dumping investigations and trade barriers and safeguard industrial safety.

References:

1 "China Zhejiang superior manufacturing industry"-issued by the General Office of Zhejiang Economic and Trade Commission.

AnnouncementNo. 103 of Ministry of Commerce and General Administration of Customs in 2004-China Textile Business Association.

3) "Promoting Free Trade and Building a Cooperation Platform" —— Speech by Du Renzhou, President of China Textile Industry Association, at the Forum of "Transnational Procurement of Textiles and Clothing in China"