International Competitive Environment and Countermeasures Faced by Textile Industry

Hao Weimin Gu Qiang China's textile industry has a long history, is a traditional pillar industry in the process of China's industrialization, and is also an industry with strong international competitiveness and high international dependence. Our country is increasingly becoming a worldwide textile and apparel supply base. After joining the WTO, China's textile industry will integrate into the global economy on a greater scale and at a deeper level, which will have a major and far-reaching impact on the development of China's textile industry.

The international competitive environment First, under the influence of comparative advantages, the transnational flows of capital, technology, and other factors of production have triggered a worldwide change in the regional structure of textile production, and production capacity has rapidly become concentrated in areas with labor cost advantages.

With the continuous evolution of industrial structure in developed countries, the world's textile industry continues to focus on. Since the 1960s, the cotton textile industry in developed countries such as Europe, the United States, and Japan has gradually declined, while the cotton textile industry in the newly industrialized countries and regions in Asia has been rising. Since then, these newly industrialized countries and regions have also entered the ranks of traditional industrial upgrading. The cotton spinning industry in China, India, Pakistan, Southeast Asia and Latin America developed rapidly in the 1980s; by the 1990s, the cotton textile production capacity in Europe and the United States further declined. In ring spinning, for example, the number of cotton spinning spindles in Western Europe decreased from 11.6 million spindles in 1990 to 5.8 million spindles in 2000, a full reduction of 50%, while the United States decreased from 11.6 million spindles to 3.7 million spindles. By the end of the 1990s, Asia's ring spinning capacity accounted for 69% of the world's total, Europe and the United States accounted for only about 25%.

Exports accounted for 49.4% of global textile exports, Japan accounted for 9.3%, and the United States accounted for 6.8%; in 2001, this share was 34.4%, 4.2% and 7.1% respectively. The share of the United States, Japan, and Europe in global textile trade fell by 20%. Percentage. In 1980, the clothing exports of the 15 EU countries accounted for 42.0% of global apparel exports. In 2001, this proportion was 24.1%, a decrease of 18%.

In contrast, the textile and apparel trade in developing countries has risen sharply in global trade.

In 1980, China’s clothing exports accounted for only 4.0% of global trade, and in 2001 it increased to 18.8%; Mexico, Bangladesh, and Dominica had no clothing exports in 1980, and in 2001 they accounted for 4.1% of global apparel trade, respectively, and 2.6 % and 1.4%. Between 1990 and 2001, the countries that had a large increase in the proportion of monthly shipments of domestic exports to their domestic exports were Bangladesh, Dominica, Tunisia, Sri Lanka, and Romania. Fibers and their trade after the 1980s were mainly driven by the clothing trade. From 1980 to 1990, the trade volume of fiber products increased by 128 billion U.S. dollars, and the clothing trade increased by 68.9 billion U.S. dollars; from 1990 to 2001, the trade volume of fiber products increased by 129.5 billion U.S. dollars, the clothing trade increased by 86.9 billion U.S. dollars, and 50% of the trade in fiber products increased. Due to the overseas processing trade of garments and their finished products processing. The garment industry is at the low end of the value chain of the entire textile industry. Compared with traditional industries such as cotton textiles, the garment industry is more labor-intensive and has a growing role in the process of industrialization in developing countries.

Second, the textile industry in developed countries and newly industrialized countries has changed the traditional way of competition, using high-tech and market networks to dominate the development of the textile industry with high added value and high value-added.

High-tech has been introduced into the textile industry, and the structure of the world's textile industry has undergone profound changes. The development and utilization of new textile materials and new technologies have greatly expanded the space for the development of the traditional textile industry and enabled the modern textile industry to show a development trend based on textiles and surpassing textiles, based on consumption and surpassing consumption; Widespread application in the production field has led to a gradual shift from labor-intensive to technology- and capital-intensive manufacturing in the spinning manufacturing industry. The rapid development of information technology, especially the Internet, has led to the development of the textile industry from production to technology and management. The narrow range of benefits extends to a broader and far-reaching space for time and market benefits, and a large number of high-tech applications, such as computer technology, sensing technology, and variable frequency speed control, have made textile and apparel chemical fiber manufacturing technologies short-term, With the development of automation, continuousization, and high-speed development, the above changes have also led to the competitive export of the world's textiles, such as the U.S. that has produced its own yarns or fabrics from the 'price and quality' competition to 'high-tech' features and brand competition. Focus on "Comprehensive economic strength competition.

In the market segmentation, developed countries rely on the advantages of capital and technology to firmly grasp the control power of the world's high-end textile market. Take the example of textiles and garments imported from the United States, China's export unit price is only 1/4 of that of advanced countries. Last year, the United States imported textiles and garments price comparison units: USD/m2 Source: US Textile and Apparel Office 3rd, the rise of regional groups On the one hand, it has achieved liberalization of trade within a limited scope. On the other hand, it has expanded a country’s tariff and non-tariff barriers into regional trade barriers.

Internal trade; North American exports account for 38% of internal trade. These trades are maintained under exclusionary conditions. Between NAFTA (US, Canada, Mexico 2 fiber trade volume was 6 billion U.S. dollars in 1993, 12.2 billion U.S. dollars in 1996, and 18.4 billion U.S. dollars in 1998, and U.S. exports to Canada and Mexico accounted for 8.1 billion U.S. dollars in 2002 The import of 12.7 billion U.S. dollars from Canada and Mexico.This institutional arrangement has not only promoted the development of Mexico's textile industry, but also protected the interests of U.S. textile manufacturers, but it has clearly rejected the trade of countries and regions outside the region. Many U.S. garment manufacturers have moved their production to Mexican and Caribbean countries, driving exports of U.S. textiles to Mexico, processing them into fabrics or clothing, and returning them to the U.S., enjoying preferential trade policies for regional trade, through the internationalization of production. , Lower production costs and increase competitiveness.

Although it is densely regulated, its policy of exempting tariffs and quotas in Central and Eastern Europe has made the overseas processing trade in EU regional textiles very prevalent. On January 1, 1998, the European Union withdrew restrictions on textile garments in six countries in Eastern Europe, including Bulgaria, the Czech Republic, Hungary, Poland, Romania, and Slovakia. The textile and garment industry in Western Europe has already set up factories in Eastern Europe. As a result, the complementary division of labor within Europe has created a strong obstacle to the export of textiles and garments from other regions, especially the Far East.

Trade within the regional group is generally subject to a zero tax rate, while the tariff level of the foreign trade is generally above 10%, and the U.S. clothing tariff in 2005 will be 11.5%. If the global textile and clothing industry implements free trade on time in 2005, regional groups The policy of discriminatory tariffs on exports to a large number of developing countries outside the region is still a big barrier, which largely offsets the positive effects of trade liberalization.

Fourth, the implementation of the sustainable development strategy poses common challenges to the development of the textile industry in various countries from the aspects of environmental protection and resource constraints.

From the viewpoint of the production and processing of fibers and textiles, it is closely related to the production of fibers, textiles, environmental protection, environmental cleanliness, and resource recovery. For example, viscose fiber uses carbon disulfide and acid and alkali in the production process, which is not conducive to environmental protection. Environmental protection has led to the extension of pure production technologies to environmental technologies and environmental protection technologies. New technologies and processes must take into account low bath ratios, short processes, and versatile production technologies. We must also consider waste water recycling, non-toxic spinning, pollution-free sizing, pollution-free spinning, and pollution-free dyeing and finishing. Technology to prevent residues of formaldehyde, carcinogenic dyes, harmful heavy metals, halogenated dye carriers, and other substances harmful to human health in textiles. Developed countries and newly industrialized countries have shifted some industries to developing countries due to factors such as environmental protection and production costs, while developing countries are facing a dilemma of “sustainable development” and economic growth because of the lack of funds and environmental protection technologies and increasingly serious environmental pollution. Among them.

Sustainable development is not only a component of a national development strategy, but it is also a common problem faced by human development. The liberalization of trade and investment may accelerate the transfer of some pollution- and high-energy-consuming industries in developed countries to developing countries. If policies and measures are not properly implemented, they may aggravate the environmental pollution of developing countries or damage the ecological environment. At the same time, the problem of 'environmental dumping' may also arise in the development of trade in developing countries.

Globalization has made countries face different strategic options in terms of sustainability.

The industries in various countries have launched all-round competition in terms of resources, costs, technology, and foreign trade policies. Under the background of increasing market integration levels, the competitive pressures faced by China's textile industry are increasing. Due to the dynamic changes in comparative advantage, China and Pakistan and India have no advantage in the competition of some traditional products such as cotton yarn and cotton grey cloth; in terms of garment export, they face Indonesia, Bangladesh, Sri Lanka, Turkey, Vietnam, and the Caribbean coast. The country's strong challenge. In fact, China's textile industry is facing two types of competition at the same time: one is the medium-to-high end product market, which is mainly the high-quality product market in developed countries such as Europe, the United States, and Japan, and the competition in the medium and high-end product markets in large and medium-sized cities in China; The category is a product market with cheap and beautiful products. It is mainly a competition among developing countries such as Asia, Africa, and China's vast rural consumer market. In other words, in the international market, http://China's textile industry faces both the competition of advanced technology equipment and brand-name high-end products from developed countries and the competition of high-quality, low-cost products from developing countries.

New Challenges Faced by Exports Textile and apparel exports will be blocked due to non-tariff barriers.

At present, the speed of the EU and its member countries or relevant organizations building green barriers is accelerating. In the textile and apparel trade alone, more than 10 new regulations, directives or standards have been introduced since last year. Developed countries have extended green barriers to textiles and clothing. Of certification. At present, more than 40 countries have implemented green technologies."

Logo certification, with a green sign to enter the country's market. These signs require exporters to apply to importing countries. Through strict inspection, testing, and comprehensive assessment, they can be used after paying a certain fee after passing the examination. They have a certain period of use, and they must apply after exceeding the deadline. IS09000 quality management system certification and IS014000 environmental management system certification and European eco-textile logo have become the thresholds for international trade.

Chinese enterprises lack sufficient understanding of green certification and system certification, and their actions are slow. Only more than 90 textile enterprises in the country have obtained the 100* certification for the environmental textiles standards of the International Environmental Textiles Association. Among the 858 dyeing and printing companies in the country, only those that have passed IS014000 certification are Of the 67 companies that passed IS09000 certification, only 26 obtained green certification products. In 2000, 2/3 of China's textile industry's export companies and 1/4 of its products were affected by technical barriers, resulting in direct and indirect economic After the WTO’s accession to the WTO, tariff barriers were gradually phased out and non-tariff barriers were increasing, and if we did not take effective measures to respond actively, it would be extremely unfavorable for China’s textile and apparel exports.

Anti-dumping and countervailing cases may appear more and more frequently.

In recent years, anti-dumping cases in the textile sector have grown rapidly. Between 1990 and 1999, a total of 197 cases were involved, ranking fifth in all industries. From 1994 to 2001, the EU proposed 53 new textile cases, which was the third among all industries, only 77 in the steel industry, and 56 in the chemical industry. Of the 53 anti-dumping cases initiated by the European Union, 46 were targeted at developing countries and 51 were applied for by relevant industry associations. China has become the most anti-dumping country.

In 2002 alone, there were several anti-dumping cases against China in the textile field. On July 17, 2002, the anti-dumping investigation agency of India issued an announcement deciding to conduct anti-dumping investigations on silkworm silk originating in China. In November 2002, the Turkish government issued a communiqué to make anti-dumping final ruling on polypropylene blankets originating in China and decided to impose anti-dumping duties of US$4/kg. The South African Taxation and Trade Department recently issued a government announcement to separately rule on the extension of the five-year anti-dumping duty on PTFE tape and plain weave.

In addition, within 15 years after China’s accession to the WTO, China treats China as a non-market economy country; in the course of anti-dumping investigations, the dumping margin may not be calculated in accordance with China’s prices, but instead using the third country’s alternative prices “and Similar products, regardless of the actual price of exports, are levied at a uniform tax rate, which greatly enhances the arbitrariness of anti-dumping countries and puts China in an extremely passive position.

If Chinese enterprises do not respond actively and cannot safeguard their legitimate rights and legitimate markets, they will be completely in a disadvantageous position.

Special safeguard mechanisms may hinder the expansion of China’s exports.

Safeguard measures refer to the fact that when a member increases rapidly in imports and causes serious damage or severe damage to its domestic related industries, the member may temporarily restrict the import of such products, adopting forms such as raising tariffs, pure quantitative restrictions, and tariff quotas. Since China's accession to the WTO documents also contains special articles on textiles and clothing, China's textile and apparel exports will also be severely constrained by this mechanism.

The American Textile Manufacturers Association (ATMI) had already proposed to the US Textile Agreement Executive Committee (CITA) in September 2002 that according to the terms of the special protection measures for the textile market in China's WTO accession agreement, the U.S. government is required to impose quota restrictions on Chinese products, mainly knitting. There are five categories: cloth, bras, gloves, pajamas, and cloth luggage. ATMI also requires that if the chemical fiber yarns from China continue to increase, quota limits should also be adopted. Although the U.S. government has not yet made a final statement on this, it will certainly have a negative impact on China’s textile exports to the United States. On March 8, 2003, the European Commission issued regulations. The basic content of the regulations is that, given that China's WTO accession agreement provides product-based transitional safeguard measures and transitional measures to prevent trade diversions, the European Commission has launched a special transition to Chinese products. Protection mechanism. South Korea and other countries have also formulated special laws for China’s special safeguard clauses, which will affect China’s textile and apparel exports in the coming period.

Several countermeasures have strengthened the coordination of foreign trade policies.

On the basis of following the rules of international trade, we will actively study the trade policies of textile importing countries and adopt flexible measures to expand textile exports. Encourage enterprises with comparative advantages to shift from export trade to trade and investment, focusing on investment in the economic integration of the region and the major markets for textile and apparel product exports. In terms of going global, we will strengthen planning and guidance, transfer some production capacity in an organized and systematic manner, and develop overseas processing trade. To prevent foreign products from excessive import, dumping, and subsidies from harming domestic industries, we must establish urgent safeguard measures as soon as possible. "Warning and Warning System. Aiming at the special transition insurance system for textiles and garments" and major issues such as the automatic termination of the ATC agreement in 2005, we will strengthen forward-looking research and respond well. Under the multilateral trade system, they jointly promote the liberalization of the global textile and apparel trade.

Step up the development of technical trade measures.

China’s technical standards are biased towards production standards, and insufficient attention is paid to trade-based standards. They cannot adapt to the requirements of international markets for product quality. Compared with the product standards of developed countries, the internal quality requirements are low, which restricts the improvement of product quality. There are nearly 90 national standards related to the safety of textiles. Although most of these standards are equivalent to the ISO standards, there are still gaps between them and the latest developments in the world, and these standards are mostly recommended standards and have key limit indicators. Mandatory standards and corresponding technical regulations are still blank. In terms of ecological standards, there are problems such as the incompleteness of environmental protection standards and regulations, and the incompleteness of environmental protection technologies and measures.

We must conduct analysis and research from the perspective of economic security and product competitiveness, propose key industries and product catalogues that adopt trade technical measures, and conduct special studies to formulate a technical trade measure system that conforms to China's national conditions. In the areas involving national security requirements and the protection of human health or safety, relevant technical regulations will be formulated to improve industry access standards and promote industrial upgrading.

Establish an industrial service system that adapts to international competition.

The industry associations will play a positive role in the formulation of industry standards, the implementation of industry self-discipline, the promotion of joint market development and technology development, the provision of professional services for enterprises, and international exchanges. Self-discipline through various forms, such as through regulations, industry conventions, industry service standards, industry trading rules or practices, industry quality standards, industry regulations, business model regulations, violations of the practice discipline and professional ethics discipline rules, and commercial dispute handling rules, etc. Self-discipline. Establish an efficient information network linking textile companies, intermediary organizations, governments, and markets. In particular, provide SMEs with a full range of services in information, technology, and talent. According to the provisions of the WTO, there are lawsuit qualifications for the dumping of foreign products. One is the government, and the other is an industry organization. A single enterprise has no qualification for prosecution. The reason is that the substantive damage described in the WTO Treaty is for a country or Regional industry, not business. Similarly, it is also the government or trade associations that have filed anti-dumping suits against foreign countries. Therefore, industry associations can play the role of the sponsors and organizers of the safeguard clauses of the WTO, and safeguard the legitimate interests of enterprises. The early warning system for industrial security that is allowed by the WTO's national emergency safeguard measures should be established as soon as possible, and the current anti-dumping and anti-subsidy mechanisms should be perfected, and strong safeguard measures should be taken for domestic industries in a timely manner.

Accelerate the pace of certification and actively participate in international litigation.

Ecological testing and certification of textiles and clothing has become a prerequisite for access to the international market. We must actively develop environmentally friendly deep-processed products, and use green textiles, ecological clothing, etc. as a new growth point for textile and apparel exports. At the same time, we must accelerate the pace of certification, and actively carry out a variety of certification forms such as ISO9000 quality system certification, ISO14000 international environmental protection standard system certification, access to the international market permit, to break the trade barriers set by some countries.

At present, except for the EU, other countries have adopted the practice of giving Chinese respondent companies separate awards. The anti-dumping duties of enterprises responding to the lawsuit are low, and those enterprises that are not liable to the lawsuit are punished with a high anti-dumping tax of more than 100%.

In recent years, our country has been advocating a policy of responding to those who responded, and who has benefited from it. If the “termination agreement” is adopted or if other enterprises that have not participated in the repo are re-exported, they must pay an anti-dumping tax. Fundamentally speaking, only when the company responds actively and provides favorable evidence to the court and gradually increases the proportion of winning the case, will the anti-dumping situation gradually improve.

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