Internal And External Pressure, Big Cotton Textile Enterprises Hope To "Find Another Way Out"

The China Cotton Textile Industry Association recently released a survey report on China's cotton textile enterprises' prosperity, showing that the textile industry's pformation will increase under the pressure of rising internal costs and external environment. For the top of all manufacturing industries, 49.2% of enterprises hope to switch to other industries.

The enterprises surveyed are mainly the governing units of China Cotton Textile Industry Association. They are involved in 17 provinces and autonomous regions. According to the survey report, enterprises will reduce their investment in the textile industry by RMB appreciation, export tax rebate policy adjustment and trade friction, and expect to reduce investment by 15.5%.

According to the association sample survey, the proportion of the top 50 enterprises in the textile industry in 2007 accounted for a significant increase in total income, compared with last year. It is understood that the main investment in real estate, stocks, funds or other industries.

The head of a textile listed company has said that the current business operation has encountered great difficulties. The appreciation of the renminbi has led to a reduction in export orders, while domestic costs are rising, especially in terms of labor costs. "No way, we have to find another way out."

It is understood that the company is also actively expanding the field of new energy in addition to its main business.

In addition, the Cotton Textile Association's report shows that 27.3% of the enterprises surveyed have been unable to bear the current RMB exchange rate; 44.4%, there are varying degrees of export to domestic sales, some enterprises have completely abolished exports, and the average pfer to domestic sales is 16.8%, resulting in fierce competition in the domestic market, especially in the middle and low grade products.

The Cotton Textile Association said that 2008 is a relatively difficult year for enterprises. This year, the growth of gauze products will drop further, and the industry will start a steady period.

The industry should attach importance to improving the contribution rate of science and technology and the contribution rate of brand, so as to ensure the sustainable development of enterprises. At the same time, we should increase R & D investment, reduce the production of medium and low grade products, consciously integrate the industrial chain, and enhance the core competitiveness of enterprises.

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