To analyze the direction of industry development, discuss industry response strategies, ensure the supply of industry raw materials, and promote communication and cooperation between upstream and downstream enterprises in the cotton textile industry chain, on July 17, the Raw Material Industry Chain Branch of the China Cotton Textile Industry Association held a successful meeting in Zhengzhou, Henan. Dong Kuiyong, President of the China Cotton Textile Industry Association, and Jing Shenquan, Vice President, Wei Gangmin, Vice President of the China Cotton Textile Industry Association, President of the Raw Material Industry Chain Branch, and Chairman of Henan Tongzhou Cotton Industry Co., Ltd., member units of the Raw Material Industry Chain Branch, and representatives from some enterprises in the industry attended the meeting. The meeting was chaired by Xu Xiaoyuan, Deputy Secretary-General of the China Cotton Textile Industry Association and Secretary-General of the Raw Material Industry Chain Branch.
At the meeting, Jing Shenquan, Vice President of the China Cotton Textile Industry Association, delivered a welcome speech. He stated that the industry is currently in the off-season, market demand is insufficient, and the production and operation pressure on enterprises is increasing. In the face of sluggish consumption and an increasingly competitive market, he hoped that upstream and downstream enterprises in the cotton textile industry chain could communicate and cooperate fully through this meeting to contribute suggestions and advice for promoting high-quality development of the cotton textile industry!
Wei Gangmin, Vice President of the China Cotton Textile Industry Association, President of the Raw Material Industry Chain Branch, and Chairman of Henan Tongzhou Cotton Industry Co., Ltd., delivered the branch's annual work report at the meeting, summarizing the branch's key work over the past year and outlining the work plan for the coming period. He stated that since last year, the cotton textile industry has faced a complex and severe development situation, and enterprises have faced many difficulties and challenges in production and operation. With the support of relevant industry leaders and members of the branch, the Raw Material Industry Chain Branch has repeatedly made policy adjustment suggestions to relevant national departments on raw material security, market operation, and industry development. At the same time, it has strengthened the publicity of national policies, earnestly implemented the spirit of General Secretary Xi Jinping's instructions on Xinjiang cotton, promoted the use of Xinjiang cotton through various means, and cooperated with relevant institutions to improve the technical level of Xinjiang textile enterprises, enhance the quality of Xinjiang yarn, and ensure the stable and healthy development of China's cotton textile industry chain. In the future, under the unified guidance of the China Cotton Textile Industry Association, the branch will continue to earnestly complete the tasks assigned by the superior authorities and actively provide industry consultation and services for cotton textile enterprises.
At the meeting, member units of the Raw Material Industry Chain Branch and some representatives from enterprises in the industry conducted in-depth exchanges and discussions on the current market situation, the difficulties and problems faced by enterprises, opinions and suggestions on macroeconomic policies; the current status of raw material use by textile enterprises, the preferences and changes in downstream consumption of raw materials, and judgments on the market situation in the second half of the year; and how to fully utilize the platform role of the branch to provide ideas for business operations, business strategies, and development planning of enterprises.
Finally, Dong Kuiyong, President of the China Cotton Textile Industry Association, summarized the meeting. He stated that for the survival and development of enterprises in the next step, three sets of relationships need to be explored and clarified: First, the relationship between the traditional model and the industry + technology + finance model; second, the relationship between Xinjiang and the mainland; and third, the relationship between domestic and foreign markets. Where is the path for the Chinese cotton textile industry? Cooperation and collaboration are essential questions, and they are questions that must be answered well. In an era full of uncertainties, it is difficult for any single link to be self-sufficient. Ultimately, the raw material sector must contribute its due wisdom and strength. In 2020, the China Cotton Textile Industry Association reorganized the former China Cotton Textile Industry Association Cotton Trade Professional Committee into the China Cotton Textile Industry Association Raw Material Industry Chain Branch, aiming to broaden the scope of the branch members' industry chain and establish a more comprehensive communication and cooperation mechanism. After four years, we have gathered again in Zhengzhou, and I have many thoughts to share. There are two points I would like to share. First, raw material security. Raw materials are an important foundation for the production of cotton textile enterprises, and raw material security is an important part of the branch's work. The branch has done a lot of work around raw material security, especially the allocation of quotas, which is of concern to the industry. The branch has repeatedly reflected the demands of industry enterprises and made relevant suggestions to the National Development and Reform Commission in various forms. In late June, the China Cotton Textile Industry Association once again submitted a “Suggestion on the Timely and Sufficient Increase of Cotton Import Tariff Rate Quotas” to the National Development and Reform Commission, hoping that the policy can be implemented as soon as possible. Second, the name of the branch is the “Raw Material Industry Chain Branch,” originally intended to be the supply chain branch, which is a broad concept of the supply chain, covering the structure of the first, second, and third industries from fiber raw materials (cotton, chemical fiber) to finished products, commodities (clothing, home textiles, industrial textiles), and brands. It plays a fundamental and supporting role in the cotton textile industry, forming a virtuous supply chain ecosystem driven by consumption, driven by raw materials, and coordinated by manufacturing, and creating a high-efficiency, high-quality, high-responsibility, and low-cost cotton textile and garment supply system. In addition to raw material security, the branch's responsibilities also include telling the stories of cotton and cotton textiles together, creating high-quality cotton product brands and chemical fiber staple fiber product brands. There is a lot of work to be done, including strengthening market information exchange within the industry, improving brand supply chain docking, promoting the application of new products, organizing training and business investigation activities, and expanding multi-faceted communication and cooperation between upstream and downstream enterprises. In the past two years, the China Cotton Textile Industry Association has been thinking about how to better play the role of the Raw Material Industry Chain Branch, and has also discussed this with some branch members. Enterprises hope that the branch can build more and better platforms for communication and cooperation, and can provide ideas for business operations, business strategies, and development planning. Therefore, as a next step in exploration, the branch plans to launch a “Cotton Textile Industry Chain Research Trip” activity. Xinjiang is currently a focus of industry attention, and the first research trip is planned to go to Xinjiang. August is the transition period between the peak and off-peak seasons of the industry, and it is also a key period for the formation of cotton quality and yield. We hope that everyone can gain something from the research. The difficulties and problems encountered by the representatives at the meeting in the production and operation process, as well as the valuable suggestions put forward, especially the demands for policies such as quotas, will be compiled by the branch secretariat and submitted to the relevant national departments.
