“The plan is always out of step with change.” This sentence is perfectly suitable for the cotton textile industry.

Cotton textile industry is the foundation of China's textile industry, and its development is directly related to the rise and fall of China's textile industry. However, when the cotton textile industry is full of confidence and is preparing to “do it all” during the “12th Five-Year Plan” period, it has been “headed” in cotton raw materials, and the industrial enterprises are not only facing the impact of economic slowdown inside and outside China. In addition, it is also subject to the impact of a huge spread of cotton at home and abroad.

Fortunately, during the “12th Five-Year Plan” period, driven by all practitioners, especially key enterprises, the cotton textile industry has achieved good results in many aspects.

In response, the reporter interviewed Wang Qingcui, vice president of the China Cotton Textile Industry Association, and asked her to tell us about the “happiness, anger, grief and joy” of the Chinese textile industry during the “12th Five-Year Plan” period.

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The level of automation significantly enhances the diversification of product structure

"During the 12th Five-Year Plan period, China's cotton textile industry was able to maintain steady development, and it was not easy. At the same time, it also achieved very good results in many aspects." Wang Qingcui, Vice Chairman of the China Cotton Textile Industry Association, told the "Textile and Apparel Weekly" "Reporters introduced.

During the “Twelfth Five-Year Plan” period, the pace of product adjustments in China's cotton textile industry was accelerated, scale intensification, and production automation continued to increase. The share of advanced equipment such as Coupling and Coupling increased steadily, while compact spinning, high-speed rotor spinning, and jetting The application of new spinning technologies such as Vortex spinning continues to expand.

"During the 12th Five-Year Plan period, China's cotton textile industry has indeed improved a lot in terms of automation and intelligence. For example, in Jiangsu Dasheng Group, we have created a full-process digital workshop with 10,000 spindles under 20 workers," said Wang Qingcui.

The data shows that with the continuous improvement of automation and intelligence, the ten thousand spindles in China's cotton textile industry during the “Twelfth Five-Year Plan” period have basically maintained around 60 employees.

In addition to the continuous improvement of production automation, during the “Twelfth Five-Year Plan” period, the application of non-cotton fibers in China's cotton textile industry has also gradually increased, and cotton textile products have shown a diversified situation.

"The increase in non-cotton fibers is affected by cotton raw materials on the one hand, and the accelerated development of chemical fiber products on the other, and the level of science and technology has also been continuously improved. Now, the product structure of the cotton textile industry is enriched a lot," said Wang Qingcui.

According to statistics, in the “Eleventh Five-Year Plan” period, the proportion of cotton used in China's cotton textile industry was higher than 50%, and at the end of the “Twelfth Five-Year Plan”, this proportion dropped to about 36%.

Wang Qingcui said that the diversification of cotton textile products can effectively reduce the impact of cotton raw materials on enterprises, while also increasing the competitiveness of cotton textile companies and enriching people's material life.

At the same time, during the "Twelfth Five-Year Plan" period, China's cotton textile industry has achieved outstanding results in brand building. Wang Qingcui introduced that during the "12th Five-Year Plan" period, a total of 51 brands with the most influential influence in the industry were recommended and 20 cotton textile related clusters were established.

It is worth mentioning that during the "Twelfth Five-Year Plan" period, China's cotton textile industry showed new changes in regional transfer. Some cotton textile companies moved to Southeast Asia, and another part of cotton textile companies moved to Xinjiang.

Wang Qingcui said that companies moving to Southeast Asia are mainly looking for lower production costs and advantages in the trading environment, such as the advantages of raw materials, and the shift to Xinjiang is mainly due to policy advantages. “With the current tightening of cotton prices at home and abroad, the advantages of production costs for enterprises transferred to Southeast Asia are not as great as they once were. The enterprises transferred to Xinjiang mainly depend on preferential policies in Xinjiang and the continuity of policies. It is important for these companies."

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Cotton purchasing and storage policies lead to controversial cotton quality status as "heart disease"

Undoubtedly, during the "12th Five-Year Plan" period, one thing that made the textile industry "distressed" was not the "Temporary Cotton Storage and Retention Policy".

In March 2011, the National Development and Reform Commission and other relevant departments jointly issued the 2011 Preliminary Interim Storage and Storage Plan for Cotton, which was implemented in September 2011. China’s cotton industry has thus entered a three-year era of cotton storage.

"This policy has effectively stabilized China's cotton prices, but it has caused the inversion of cotton prices at home and abroad." Wang Qingcui said that during the three years, the price difference between China's cotton and international cotton prices reached a maximum of 6,000 yuan.

The inversion of cotton prices at home and abroad has directly led to cheap imported yarns from India, Pakistan and other Southeast Asian countries and regions that have rapidly occupied China's cotton yarn market. China's production of medium and low cotton yarn companies is in jeopardy.

"During the 11th Five-Year Plan period, China exported a large quantity of cotton yarn, but during the 'Twelfth Five-Year Plan' period, it imported a large quantity of cotton yarn." Wang Qingcui said that during the "Eleventh Five-Year Plan" period, China's average yarn imports were also Only about 400,000 tons, and in the "12th Five-Year Plan" period in 2015, China's imports of yarn reached about 2.5 million tons.

In fact, the temporary cotton purchase and storage policy not only caused the inversion of cotton prices at home and abroad, but also made the quality of cotton in China continue to decline. Enterprises that produce high-end cotton yarn products have even reached the point where there is no cotton spinning.

"The State Reserve Cotton has a series of quality problems. Now some cotton textile companies use foreign imported cotton in order to spin high-quality products," said Wang Qingcui.

In fact, the temporary cotton purchasing and storage policy not only restricts the development of the cotton textile industry, but also the planting area is decreasing year after year. In 2014, the status of the world’s largest cotton producing country was also surrendered to India in several years.

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Insufficient internal and external demand for power

It is worth noting that during the "12th Five-Year Plan" period, insufficient domestic and foreign demand has also become an important factor restricting the development of cotton textile enterprises.

"Especially in the last two years, we can clearly feel that the demand for domestic and foreign markets is insufficient, and the market sales of cotton textile products are not optimistic," said Wang Qingcui.

On the one hand, it is constrained by cotton spreads and the quality of cotton. On the other hand, there is a clear lack of demand for domestic and foreign markets. Under the constraint of multiple factors, China's cotton textile enterprises are struggling. Especially for some small and medium-sized enterprises, these years are a “nightmare”.

“Some small and medium-sized enterprises cannot withstand such a big impact because they do not have their own unique advantages. The person in charge of enterprises is even more bitter, especially when some small and medium-sized enterprises have closed down,” said Wang Qingcui.

Wang Qingcui pointed out that in recent years, due to the severe situation in the industry, the China Cotton Textile Industry Association has also stepped up its research on companies. Through investigation, we found that under the constraints of multiple factors, there are two types of companies that can achieve better development.

One is a large-scale backbone enterprise. "Because the large-scale backbone enterprises rely on strong internal strength, rapid product mix adjustment, combined with a sound management system and sales channels, they can withstand the impact of multiple factors and can achieve a steady development."

The other category is companies that have featured products. "After all, this type of enterprise is a minority in the market. At the same time, the product also has its own unique advantages. Therefore, in the market competition, it can be 'independent.'"

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The cotton policy returns to the market with "high-yielding and low-buckling" and finally "breaking ice."

After the storm is a rainbow. At the end of the "Twelfth Five-Year Plan", China's cotton textile industry finally ushered in two happy events.

With the joint promotion of people in and outside the industry, the three-year temporary cotton purchasing and storage policy was finally announced in 2014 and replaced by a trial of cotton target price reform in Xinjiang.

“The pilot reform of the cotton target price has made the cotton industry a big step towards marketization.” Wang Qingcui said that from the current implementation, the effect is obvious and cotton prices have begun to integrate with the market. Reduced, the industry market environment has been significantly improved.

Wang Qingcui stressed that although the cotton target price reform has achieved good results, it still needs to be further improved, and it is necessary to continuously improve the quality of cotton so that the cotton industry can truly become market-oriented.

In addition to canceling the cotton temporary storage and storage policy, another important happy event is that the "high-eleventh low-buckle" has finally been "breaking ice" under the industry's multi-year appeal.

In 2014, Anhui Province took the lead in incorporating lint and cotton yarn into the pilot deducted trial scope for VAT input tax for agricultural products. That is, lint used by cotton spinning enterprises can be calculated and deducted according to the applicable textile tax rate of 17%. At this point, the problem of “high-legged and low-buckle” that has plagued the cotton textile industry for more than two decades has finally been loosened.

"From the current point of view, with the exception of Anhui, Hunan, Zhejiang, Shandong, Shaanxi, Jiangxi, and Jiangsu have also initiated the reform program of "high-learning and low-bucking". The breakthrough in the "high and low deduction" reform has historic significance. It is crucial for the entire cotton textile industry," said Wang Qingcui.

Wang Qingcui said that despite the breakthrough in the reform of the “high-eleventh low-buckle”, some details need to be continuously improved. It is recommended that the deduction should be implemented, and the applicable tax rate for cotton VAT should be adjusted to 17%, which can simplify the corresponding procedures and reduce the pressure on the company's funds.

Looking to the "Thirteenth Five-Year"

Put quality and efficiency in the first place

The "Thirteenth Five-Year Plan" will be a crucial five-year period for China's deepening reforms. It will also be a crucial period for the "strong textile nation" to move toward a "strong textile country." For China's cotton textile industry, the situation and tasks it faces are still very high. difficult.

Wang Qingcui said that in the future development of the "Thirteenth Five-Year Plan", China's cotton textile industry will develop in many aspects such as improving quality and efficiency, enriching product structure, and optimizing regional distribution.

Pay more attention to quality and efficiency

At present, China's textile industry has shifted from scale expansion to quality and efficiency. For the cotton textile industry, quality and efficiency will become important development goals during the “13th Five-Year Plan” period.

Wang Qingcui said that in the next five years, the cotton textile industry will pay more attention to improving quality and efficiency. “The yarn production will continue to develop steadily, and the quality of products will also be further enhanced. The industry must change from the emphasis on quantity in the past to the emphasis on quality.”

Wang Qingcui said that on the one hand, quality improvement and efficiency enhancement should be based on technology, and on the other hand, raw materials should be used. The cotton industry chain must join hands and spare no effort to improve cotton quality.

Improve production automation and intelligence

In the current period of rising production and labor costs, improving the level of automation and intelligence in the industry has become the only way for cotton textile companies.

"At present, the level of automation and intelligence in the industry has made some breakthroughs, but this breakthrough is still far from enough." Wang Qingcui said that in the "13th Five-Year Plan" period, the level of automation and intelligence in the industry must be further improved. The use of advanced technology and equipment to improve labor productivity, create more full-process digital factories, and further reduce the cotton industry's million ingot employment.

Strengthen technology and management innovation

Innovation is the eternal driving force for the continuous improvement of the industry. During the “13th Five-Year Plan” period, the industry’s technological and management innovation must be further strengthened.

Wang Qingcui pointed out that in order to improve the scientific and technological innovation capability of the industry, during the “Thirteenth Five-Year Plan” period, the industry must continue to break through the original shackles of cotton textiles, improve spinning processing technology, and continue to promote the application of new spinning technologies such as jet vortex spinning and rotor spinning. At the same time, we must also strengthen and enhance the ability of independent innovation of enterprises, and attach importance to brand building and new business development.

Rich product structure

During the "12th Five-Year Plan" period, the application of non-cotton fibers has been gradually expanded, and the application of various products has been recognized by the market. Therefore, during the “13th Five-Year Plan” period, the application of non-cotton fibers will be further expanded and the products will be more diversified.

Wang Qingcui pointed out that with the advancement of science and technology, the application of non-cotton fiber technology has gradually matured, coupled with the continuous emergence of new fiber, cotton textile industry products will be more abundant.

"During the 13th Five-Year Plan period, the industry will continue to expand the application of non-cotton fibers, strengthen and improve the research and development of related technologies, and at the same time promote these new products downstream so that the downstream industry chain can recognize these new products. Improve the competitiveness of cotton textile companies, said Wang Qingcui.

Optimize the layout of the area

The regional transfer of the textile industry has become a general trend. "In the "Thirteenth Five-Year Plan" period, more companies will be encouraged to deploy from both domestic and foreign markets to further increase the competitiveness and influence of China's cotton textile industry in the world," said Wang Qingcui.

When talking about the transfer to Africa, Wang Qingcui analyzed that Africa is indeed a very promising industrial transfer place, and production costs are even lower. However, judging from the current situation, Africa is far from the market and the industrial chain is not perfect. Therefore, the transfer to Africa still needs time.

Wang Qingcui said that the cotton textile industry is the basis of China's textile industry, and it has strong international competitiveness. Although the current industry situation is not optimistic and the development of enterprises is facing some bottlenecks, in the coming “13th Five-Year Plan” period, the prospects for the development of cotton textiles are still full of infinite brightness and hope.