Textile enterprises accelerate the promotion of transnational layout

China News Service, Shanghai, October 14th (Reporter Jiang Yu) Wang Tiankai, President of China Textile Industry Federation, said at the "China Textile Industry 'Going Out' Exchange Conference" held in Shanghai on the 14th that in the face of the complex situation at home and abroad , the multinational layout of Chinese textile enterprises is showing a trend of accelerating progress.

Since the reform and opening up, especially since China's entry into the WTO, China's textile industry has seized the opportunity and achieved great development achievements. However, since the financial crisis, the domestic and foreign challenges faced by the industry have become increasingly severe, and the international competitive advantage and sustainable development potential are threatened.

According to the Boston Consulting Group, China's rising labor and energy costs and exchange rate appreciation have greatly eroded the lead in manufacturing, including textiles, over the past decade. A recent survey by McKinsey & Company on 40 brand clothing companies in the United States and Europe shows that Bangladesh, Vietnam, India, Myanmar and Turkey have become the first choice for clothing purchase transfer. For China, the late-mover advantage of these countries should not be underestimated.

"In order to cope with many domestic and foreign challenges and create new international competitive advantages and sustainable development capabilities, the multinational layout of China's textile industry has accelerated in recent years." The cross-border layout of productive forces creates a manufacturing base layout model of 'China + neighboring countries'; the other main line is that industrial capital, through overseas direct investment and mergers and acquisitions, has access to high-quality raw material resources, design innovation resources, brand resources and market channel resources on a global scale. Carry out vertical extension and control, and drive the industry as a whole to penetrate into the high value-added areas of the industrial value chain.”

2015 is a very important year for the foreign investment of China's textile industry. As a major political and economic decision made by China, the "One Belt, One Road" strategy is completely in line with the historical process of transnational reset of some production capacity of textiles and garments. Better international layout provides a good opportunity.

A group of "going out" enterprises shared their "overseas economics" at the exchange conference, including Shandong Ruyi Technology Group, which has 13 branded garment manufacturing enterprises abroad, and Shandong Ruyi Technology Group, which has set up 12 (sole proprietorship, cooperation) factories abroad. Jiangsu Dongdu Textile Group, and Lu Thai Group, which has established high-standard factories in Vietnam, Cambodia, Myanmar and other countries.

According to incomplete statistics from the Ministry of Commerce of China, as of the end of 2014, Chinese textile and apparel enterprises had set up 802 enterprises overseas, with a cumulative foreign direct investment stock of US$4.01 billion. In 2014, the foreign direct investment flow was 810 million US dollars, and the operating income was 7.05 billion US dollars. At the end of the year, there were 92,000 employees, of which more than 7,000 were Chinese.