Industry Perspective: Opportunities And Solutions In Post Crisis Era

Through the economic cooperation and Development Organization (OECD) market and China

Looking back to the first ten years of twenty-first Century, the world economy showed great changes: China's accession to the WTO;

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In the past ten years, especially the financial crisis, people began to re-examine the role of the textile industry, and also changed people's views on the economic status of textiles.

In fact, textile industry is a livelihood industry for all mankind. It is a pillar industry and competitive industry in developed countries and industrialized countries, now or in the developing countries and underdeveloped countries in the past. It is a springboard for industrialization in most countries, carrying the heavy responsibilities of new urban population employment, urban industrial evolution, consumption and market expansion in the process of urbanization.

Clothing, food, shelter and clothing are the most basic needs of mankind. With the development of global economy, the growth of consumption of textile and clothing is much higher than that of population growth and the growth of world economic aggregate.

As a basic demand, the textile and garment industry is the basic industry to maintain the stability of the world and the well-being of mankind. On the contrary, the development of human society provides a continuous source of power for the textile industry.

Modern textile, which provides more than just clothing and consumer goods, can provide all kinds of materials that are fully related to human life, such as home decoration, automotive interior decoration, building roads and water conservancy geotextiles, light high-strength pport vehicles and biomedical materials. Textile has become the basic industry of human beings.

In this regard, textile industry is not only a leading industry to promote domestic demand and maintain growth in post crisis era, but also more likely to be an industry that promotes the growth of new markets, emerging industries and emerging industries.

In the post crisis era, China's textile industry is obviously facing enormous space.

The multi fiber agreement (MFA) is a distorted trading mechanism, and China is the largest victim of MFA.

In fact, MFA not only hindered the development of comparative advantage of a large number of developing countries and underdeveloped countries, but also delayed the upgrading of industrial and economic structure in developed and post industrialized countries.

From 1995 to 2004, MFA gradually disappeared under the regulations of the agreement on textiles and clothing (ATC). It can be seen that the growth rate of global textile trade is accelerating during this period.

This shows that textile trade liberalization is a prerequisite for the balanced, harmonious and inclusive growth of the global economy.

In the past ten years, especially after the abolition of MFA, China's textile industry has enjoyed a rapid growth in the international market.

Taking the OECD market as an example, this paper analyzes the contribution of China's textile industry in the past ten years.

We can divide the growth contribution into four aspects: world growth, product advantage, market advantage and price competitive advantage. We divide the products into SITC26, SITC65 and SITC84, and divide the OECD market into North America (USA, Canada), East Asia (Japan, Korea), EU 15 countries and OECD countries.

Through analysis, we can get an analytical structure of export growth factors, which shows that the growth of China's textile industry in the OECD market mainly comes from world growth (which has risen significantly after MFA) and price competitiveness (price competitiveness decline). The contribution of the market and product superiority is very small. The growth of the 15 countries in the EU mainly comes from world growth, and the contribution of product superiority is very large, and the price contribution is negative. ASEAN's price competitiveness is rising, and the contribution of product superiority is negative.

All exporting countries have enjoyed the benefits of trade liberalization brought about by the growth of world textile trade.

It can be clearly seen that the growth of China's textile trade mainly comes from the growth of Global trade in the process of trade liberalization, followed by price competitiveness.

However, due to the rising cost of labor raw materials in recent years, price competitiveness has declined significantly in the past ten years, while the advantages of product structure and market structure have contributed little.

This shows that the export growth of China's textile industry has so far depended mainly on scale and price competition.

In the post crisis era, in order to achieve a new round of growth and pform from a big textile country into a powerful country, we must adjust the industry (product) structure, optimize the market structure, and pform the traditional competition mode.