Sino-Royal Textile Industry Reached An Agreement To Build A Bridge Of Bilateral Cooperation

- Sep 15, 2019-

On May 13th, the China Textile Association delegation headed by Sun Ruizhe, president of the China National Textile and Apparel Council, held a discussion with Romanian textile industry representatives in Bucharest, Romania. Vice President of China Textile Association, President of China Knitting Industry Association Yang Jichao, Vice President of China Textile Association, Executive Vice President of Textile Industry Branch of China Council for the Promotion of International Trade Xu Yingxin, Vice President of China Textile Association, Director of Industry Department Sun Huaibin, Vice Chairman of China Textile Association Yuan Hongping, Secretary General, Director of the Foreign Affairs Office, Feng Dehu, President of China Textile Construction Planning Institute, Zhu Beina, President of China Cotton Textile Industry Association, Chen Zhihua, President of China Printing and Dyeing Industry Association, Sun Xiaoyin, Director of Human Resources Department of China Textile Association, Director of China Textile Association Xi Yan, Liu Song, vice president of China Textile Machinery Association, Yan Yanwei, director of China Textile Association's Information Technology Department, and Dong Kuiyong, deputy director of China Textile Association's Productivity Promotion Department, attended the meeting.

At the meeting, representatives of the two sides actively explored opportunities for cooperation between the two sides through the introduction of the development of their respective textile industries. Sun Ruizhe, president of the China National Textile and Apparel Council, and MiHai Pasculescu, president of the Romanian Textile and Apparel Leather Association, signed a cooperation agreement between the China Textile Industry Federation and the Romanian Textile, Apparel, Footwear and Leather Products Industry Association.

Romanian market scan

Romanian textile and garment leather association president MiHaiPasculescu, Romanian Foreign Investment Agency Director SorinVasilescu and other Romanian representatives introduced the Romanian textile industry and investment situation.

According to reports, in the past 20 years, due to the lack of Romanian textile raw materials, poor development, more than 80% of textile raw materials and accessories are met through imports, 90% of the products produced are exported to the EU, the main country is Germany In the United Kingdom, France and Italy, the export volume has reached 6 billion euros. At present, about 200,000 people in Romania are engaged in the textile industry, and most of the industry is small and medium-sized enterprises.

Romania has a superior climate and land resources, and it is extremely beneficial to the cultivation conditions of flax, which will be one of its future development directions, as an upward extension of the industrial chain.

Romania is actively holding an exhibition to actively connect Chinese companies to seek cooperation from raw material suppliers. It is revealed that it will build a duty-free warehousing logistics area and a textile industrial park to attract enterprises to invest.

From the perspective of investment environment, Romania runs through the East and West of the European Union. The radiation potential of consumers can reach 500 million people. It is also the largest trade development area in Southeast Europe. The amount of foreign investment in Romania last year has reached 5 billion euros, while Romania is the second-largest country with the seventh largest population in Central and Eastern Europe. It can also radiate to countries such as the European Union, the former Soviet Union and the Middle East.

Romania's GDP growth has been uniform in recent years, with an increase of 4.19% in 2018. In recent years, foreign investment has reached its highest value, and the inflation rate reached 4.6% in 2018, but it is expected to fall to around 2.5% in 2019. The unemployment rate in 2012 was 4.2%. Since the beginning of this year, Romania's absorption rate of overseas workers has increased to 20,000. Most of the labor sources are Vietnam, India, Bangladesh and other countries. The minimum net wage currently allowed by law is 446 euros.

Chinese textile strength

Sun Huaibin, vice president of China Textile Association and director of the Ministry of Industry, briefed Luo Fang on the basic situation and future development direction of China's textile industry. He mentioned that China's textile industry is the pillar industry of China's national economy and has international competitiveness. The textile export volume ranks first in the world. The main traditional export markets are the United States, the European Union and Japan, accounting for 40%. With the “Belt and Road” The implementation of the initiative has become a new hot spot in the countries along the route, accounting for one-third of all textile and apparel exports in China.

After the reform and opening up, China's textile industry has expanded in scale, scientific and technological progress has emerged, the scale of exports has expanded, and the market-oriented development of products has become more and more abundant. Especially after entering the 21st century, China's accession to the WTO has fully released its international competitiveness. In addition, China's national economy has maintained rapid growth, providing the industry with a driving force for domestic demand.

Talking about the regional distribution characteristics of China's textile industry, Sun Huaibin pointed out that from the perspective of productivity space layout, the textile industry in Jiangsu, Zhejiang, Shandong, Fujian, Guangdong and other coastal provinces accounted for 70% of the country. In recent years, Xinjiang has also become a hot spot for textile investment. The scale of the industry has entered a high-speed development track. According to the production layout of large-scale products, chemical fiber is concentrated in Zhejiang, Jiangsu and Fujian; yarn is mainly concentrated in Shandong; clothing is concentrated in Guangdong.

Since 2011, due to the late stage of the international economic crisis, its internal structural contradictions, and the Chinese national economy has entered a period of slowdown and shifting, the textile industry has also entered a new normal of low- and medium-speed growth. The large-scale and complex international environment, such as the Sino-US trade relationship, the Chinese textile industry needs to make directional adjustments. At the same time, in order to fulfill the high-quality development tasks proposed by the Chinese government and realize the beautiful life of the Chinese people. New expectations, China's textile industry is developing along the new positioning of technology, fashion and green. Among them, smart manufacturing, independent brand building and sustainable development are particularly worthy of attention.

Sino-Romanian cooperation opportunities to explore

Xu Yingxin, vice president of China Textile Association and executive vice president of the China Council for the Promotion of International Trade, introduced the progress of overseas investment in China's textile industry and looked forward to China-China cooperation. He pointed out that the “One Belt and One Road” initiative and the firm promotion of international capacity cooperation have created a favorable macroeconomic environment for the textile industry layout, the scale of trade has continued to expand, and direct investment in countries along the route has grown steadily.

Today, China has built a world-leading independent and comprehensive modern manufacturing system for the whole industry chain. It is also the world's largest producer, exporter and consumer of fiber products. The Chinese textile industry has the strength and power to enter a new stage of cross-border layout.

The demand of textile enterprises is the internal cause of the internationalization of China's textile industry. Foreign investment has shown a multi-regional, multi-industry and multi-form acceleration trend. The investment situation includes equity mergers and acquisitions, asset acquisitions and joint ventures, etc., to coordinate the domestic market and link international resources. The breadth and depth of China's textile industry going global is expanding. From 2003 to 2018, China's textile industry's foreign direct investment totaled 9.796 billion yuan, with an average annual growth rate of 15.6%.

At present, the characteristics of China's textile industry's foreign investment cooperation are mainly the two main lines of cross-border distribution of productive forces and global cooperation of high-quality resources. In terms of investment regional distribution, the transnational green space investment of production capacity is mainly based on Southeast Asian countries, and the merger of brands is in Europe and America. Most countries are in the country. In addition, investment projects in emerging markets in Africa and countries and regions along the “Belt and Road” are gradually increasing. From the perspective of segmentation, cotton spinning and knitting have become the forerunners of greenfield investment in the industry. Investment projects in the fields of weaving, printing and dyeing, woven garments and industrial textiles have gradually increased.

Xu Yingxin suggested that China and the Central and Eastern European textile industry should strengthen international exchanges to establish a long-term communication mechanism, and at the same time encourage more Chinese textile enterprises to invest and cooperate with Central and Eastern European countries. China is constantly expanding its opening to the outside world and welcomes the use of trade platforms to enter the Chinese market.

Zhongluo experience sharing

Sun Ruizhe, president of the China National Textile and Apparel Council, said in his concluding remarks that Romania is a real, distant, intimate and yearning for us.

China has just held the “Belt and Road” summit. The countries along the “Belt and Road” have regarded the development of the textile and garment industry as the preferred industry for economic development and employment. The governments and industry colleagues of various countries are willing to strengthen textile and garment cooperation with China. It is expected that there should be an organized, step-by-step, and purposeful cooperation. Romania also has comparative advantages and good potential for cooperation: first, geographical advantage, at the intersection of Europe and Asia; second, history has a good textile industry base, is currently the largest clothing production in Eastern Europe; third, manpower The resource base is good and the quality of personnel is high.

At the same time, Sun Ruizhe shared the experience accumulated in the development of China's textile industry with Luo Fang: First, it is necessary to create a good external environment and establish an export-oriented development model. The development of an export-oriented economy requires the support of talents, funds and channels. The cooperation between China and Romania will be resolved together. Second, cluster-based development, industrial agglomeration development can gather the same type of enterprises, and concentrate on development through local government and even national power. Third, the support of the industrial chain, China's perfect industrial chain allows it to meet new challenges even in the face of trade frictions, Romania can also be based on the industry support established in the sub-sector, such as in the middle and high-end dress and other fields can be from garment processing to The wool spinning and hemp spinning production line is extended.

In addition, regarding the cooperation and development proposals between China and Romania, Sun Ruizhe also added: First of all, I hope that the Romanian Textile and Apparel Association and other institutions can list the list, so that Chinese industry colleagues can have a deeper understanding of Luofang’s needs and And the investment docking to lay the foundation. Second, I hope that the two sides will establish a long-term communication and cooperation mechanism, through mutual visits and the joint participation and organization of some key projects. Third, on the basis of Luofang’s demand, we will promote and promote the Chinese industry colleagues in the key investment areas that Luo needs, and lay the foundation for attracting investment in the next step. Fourth, the creation of a policy environment also requires the governments of both sides to rise to the national level.

At the end of the symposium, the delegation of China Textile Association also visited the famous local enterprise TANEX. Founded in 1999, TANEX has two major business segments, namely, garment and knitting. The products are mainly exported to retailers in France, Spain, Sweden, and the United States. The person in charge of the company said that he is very interested in cooperation with Chinese companies and has already imported raw materials and accessories from China.