Dai Gongxing: The Development Path Of Cotton Industry Under The New Pattern

Distinguished guests, ladies and gentlemen,

Good morning!

Today, we are gathered in the beautiful Wuhan of Jiangcheng to discuss China and the world.

Development.

On behalf of the Organizing Committee of the CPC, I would like to extend a warm welcome to all the distinguished guests and delegates to the 2016 China Cotton Industry Summit Forum, and to the Hubei Provincial People's government and Hubei's supply and marketing cooperatives which strongly support the conference.

I would like to express my sincere thanks.

Wuhan has been known as the thoroughfare of nine provinces in the East and west of the South and north of the south. It has been known as the "heart" of China's economic geography. Wuhan has a long history, and has built up a city for more than 3500 years. The glorious history has accumulated deep cultural deposits, and has bred the spirit of "being first and pursuing excellence". Wuhan is also a pioneer of reform and innovation, a pilot city for comprehensive reform of the economic system, a national innovative pilot city, and a comprehensive innovation and reform pilot area. Wuhan has become a modern city full of vitality and vitality.

At present, in the face of the new normal of China's economic development, the new problems and new contradictions existing in the cotton industry, such as excess capacity, unbalanced structure and low productivity, need more to advocate and learn the innovative spirit of Wuhan, and work together to advance the industrial pformation.

The theme of this forum is "cotton industry development under the new pattern".

The participants will focus on this theme and explore how the cotton industry can take advantage of the new pattern, explore new ideas and seek new development.

In 2015, when the global economy was sluggish and China's economy was under downward pressure,

The export of clothing is increasing and the cost of cotton planting is still high. Although the output of cotton is reduced, the number of cotton stocks is excessive, the problem of overcapacity is prominent, cotton sales are difficult, and prices are falling. At the same time, the effective supply of the market is insufficient, and the contradiction of supply structure is more prominent than that of the supply side.

Some cotton and textile enterprises have varying degrees of losses, and the cotton industry has become more difficult.

Entering the 2016, facing the complicated international situation and the continuing downward pressure on the economy, the state strongly pushed forward the structural reform of the supply side. In the first quarter of this year, the positive factors of economic operation increased and there were signs of stabilizing stage.

At the same time, as the foreign trade environment has improved, the RMB exchange rate has stabilized, and the policy effect of stable foreign trade exports has been gradually released. In 1-3, textile and apparel exports totaled nearly 370 billion yuan, reversing the trend of last year's decline, an increase of 0.4% over the same period last year.

Since China's economy has entered the new normal, a prominent feature of the economic operation is the overcapacity, the imbalance between supply structure and demand structure.

At the end of last year, the CPC Central Committee economic work conference put forward the idea of "supply side reform", emphasizing the pformation from demand side management to supply side management, from focusing on aggregate goal to focusing on structural objectives, and pforming market-oriented reform of products and services into market-oriented reform of production factors.

In the past, we emphasized the pulling effect of the "three carriages" of investment, consumption and exports on the economic development. Now, while ensuring demand, we should make the best allocation and effective utilization of labor, land and natural resources, capital, technology and system, and strive to improve the quality and efficiency of the supply system, and enhance the driving force for sustained economic growth.

China's cotton and textile industry is also facing serious structural contradiction between supply and demand. As far as cotton industry is concerned, its price is not competitive, and its quality is difficult to meet the needs of downstream textile enterprises.

The goal of the supply side reform of cotton industry is to enhance the quality of cotton, enable cotton production to meet the needs of consumption upgrading, and promote the matching of supply and demand; two, improve production efficiency, reduce production costs, promote large-scale, mechanized and intensive production and operation of cotton production, and solve the competitiveness of cotton in China from the source.

Three is to promote the pformation and upgrading of cotton circulation enterprises, enhance the efficiency and competitiveness of enterprises, and improve the quality and competitiveness of China's cotton industry is a systematic project. It needs government guidance, industry participation and association promotion, and puts forward the overall development idea.

With regard to pushing forward the structural reform of supply side, the state proposes that the current and future periods should focus on five major tasks: capacity production, inventory elimination, deleveraging, cost reduction and compensation.

For the cotton industry, these five tasks need to be integrated and planned.

In view of the current situation of cotton industry in China, the main tasks in recent years are mainly to capacity, inventory and deleveraging. In the long run, the allocation efficiency of cotton can be improved by reducing costs and reinforcing short boards.

The cost and price of cotton production in China are much higher than those in other cotton producing countries. Although there are many reasons for the small scale and small scale operation, the production technology level and labor productivity lag behind.

The production technology level is low, the quality and grade of products are low, labor productivity is low, and the cost and price of products are high.

In order to improve the quality and grade of cotton in China, we need system innovation, technological innovation and management innovation. We need the cooperation and cooperation between the government, enterprises and scientific research institutions.

In recent years, China has been pushing forward the price reform of cotton industry. From the temporary storage to the target price reform pilot in Xinjiang, it has achieved positive results. The interests of cotton farmers have been well protected, and the market mechanism has gradually formed, and the competitiveness of the textile industry has been restored.

This year, the Central Committee of the Communist Party of China issued documents, and proposed to optimize the agricultural production structure and regional layout, and improve the comprehensive efficiency of agriculture, including reforming and perfecting the price formation mechanism and purchasing and storage system of important agricultural products such as grain, and implementing the separation of price and subsidy.

In the aspect of cotton production, in 2016, China pushed ahead with the pilot project of cotton target price reform in Xinjiang. After considering the supply and demand of the cotton market and production cost and income, the price level was determined to be 18600 yuan per ton.

In terms of cotton reserves, in April 15th, the NDRC and the Ministry of Finance jointly issued a notice on the arrangements for the rotation of national cotton reserves, and decided to gradually digest the state reserve cotton inventory from this year, and gradually adjust the reserve scale to a reasonable level.

According to the general idea of last year's "four benefits", the implementation of the policy of reserve cotton production is still normalized.

The clarity of policies is conducive to the formation of stable market expectations in the industry, and contributes to the smooth progress of the supply side structure reform of cotton industry, as well as the promotion of cotton demand recovery.

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This year is the opening year of China's "13th Five-Year". The China Cotton Association will firmly follow the state's request to promote the reform of the supply side structure, and do more work in assisting national policy regulation and promoting industrial pformation and development.

It includes strengthening research on cotton and related industries, exploring supporting policies in line with the characteristics of cotton production and operation in China, and promoting the long-term development mechanism of cotton industry; promoting the implementation of the "guiding opinions on accelerating the development of modern logistics of cotton"; promoting the establishment of industry chain standards and norms in the whole industry based on the promotion of "China cotton" logo; improving the construction of China's cotton information early-warning center, building a comprehensive information service platform for the industry, establishing the big data of the cotton industry, integrating industry information resources, and better serving the industry and serving the government.

Ladies and gentlemen,

Since the global economic crisis, China's cotton industry has encountered unprecedented difficulties. The reasons are not only the domestic and international economic environment, but also the industry itself.

But our confidence in the development of cotton and textile industry has never wavered.

From a macro perspective, China's economic fundamentals are still good. With the success of China's economic reform and structural adjustment, the Chinese economy will surely embark on a new growth path, which is the foundation of our confidence sources.

At the same time, China's cotton industry has a relatively complete industrial chain at home and abroad, has certain technical and talent advantages, and has relatively mature sales channels.

Especially after this round of reform and pformation and upgrading, the competitiveness of the industry will be greatly enhanced, and more importantly, the vast market demand of China's population of more than a billion.

At present, what we need is to uplift the spirit, face difficulties directly, practice hard work in a down-to-earth way, and strive to explore the way to adapt to the new normal.

That is, we should deepen reform, adjust the structure, improve the quality, innovate the production and operation mode, and promote the pformation and upgrading of the whole industry.

From the supply side reform, we will produce cotton suitable for the textile industry and produce textiles that meet people's needs.

It is believed that with the gradual recovery of the global economy, China's economy is on the road of steady growth, consumption will gradually recover, and the cotton and textile industry will return to prosperity.

Thank you!