Currently, the overseas epidemic is still spreading, superimposed economic globalization has encountered countercurrents, challenges to multilateral economic and trade relations have intensified, and trade, investment, and consumption have shrunk significantly. The latest forecasts of the International Monetary Fund and the World Bank for global economic growth this year are down 4.9% and 5.2% respectively, which is the most serious economic recession since World War II. Based on the complex and severe economic situation and some long-term problems caused by external shocks such as the epidemic, our country has proposed “to accelerate the formation of a new development pattern with the domestic cycle as the main body and the domestic and foreign dual cycles reinforcing each other.”
As a pillar industry of the national economy and an industry with deep integration and development of the global industrial chain, textile enterprises need to accelerate the smooth flow of domestic and international dual cycles in order to This stimulates corporate vitality and promotes high-quality development of the industry. Recently, a dialogue with the theme of “Promoting Dual Circulation of Domestic and Foreign Markets” attracted widespread attention from the industry. Chief Engineer of Jiangsu Guowang High-tech Co., Ltd., Deputy General Manager of Jiangsu New Vision Advanced Functional Fiber Innovation Center Co., Ltd. Mei Feng, Director of Jiangsu Sunshine Group Technology Center Cao Xiuming, General Manager of Wujiang Fuhua Weaving Co., Ltd. Zhang Changjian, Wujiang Jingyi Special Fiber Co., Ltd. The general manager of the company, Chen Lu, held a dialogue focusing on the impact of the epidemic on their respective companies, how to deal with the complex situation at home and abroad now and in the future, how to turn crises into opportunities, how to develop domestic and export markets, and plan for future development, etc., and talked about their respective Knowledge and understanding of “double circulation”.
The epidemic suddenly hit, and the resumption of work and production, orders, and the market were completely blocked
The epidemic hit at the beginning of 2020, causing transportation and logistics to be blocked and personnel to be isolated, which has brought great challenges to the resumption of work and production, order receiving and fulfillment, industrial chain collaboration, and domestic and foreign market connections in all walks of life. A big challenge. Later, when the domestic epidemic stabilized, foreign epidemics broke out again, causing some companies with a relatively large share of foreign markets to be even more affected. The guests who participated in the dialogue felt deeply about this.
Jiangsu Sunshine Group is an innovative enterprise with textile and clothing as the main industry. The wool spinning industry is the largest in the world and is an important player in high-end clothing. Production base. Cao Xiuming, director of the Technology Center of Jiangsu Sunshine Group, said frankly, “Sunshine starts operations normally on the eighth day of the Lunar New Year every year. When the epidemic hit, the company immediately felt the impact on normal production. The main impact is in two aspects. One is the resumption of work and production, and the other is the impact on domestic and foreign production. The impact of the two markets, the domestic market has a great impact on order production, workers cannot come back, and orders cannot be received, which is very obvious in February; in late March, the international market is even more serious, showing a cliff-like decline.”
Fuhua Weaving is mainly committed to the research and development, production and sales of polyester and nylon fabrics. It is the national nylon fabric development base. The epidemic has also had a great impact on Fuhua. Zhang Changjian, general manager of Fuhua Weaving, said, “Our foreign market has a high proportion, some accounting for 60%, and it also has an impact on the domestic market. The impact of the epidemic is comprehensive, including the global economic crisis, financial The crisis, social health crisis, trade war, etc., combined, have a huge impact on our business, and it is very sudden, exceeding everyone’s expectations, and has a great impact on our foreign markets. The most serious one is the cancellation of orders. We The goods are floating on the sea, and no one from the other party has received the goods, or even abandoned the goods. It is not sure whether the order will continue to be produced or stopped, and no solution has been found.”
Jingyi is a differentiated short fiber spinning enterprise and one of the largest vortex spinning yarn manufacturers in the world. Chen Lu, general manager of Jingyi, believes that the biggest impact of the epidemic on enterprises in the Chinese textile industry is the change in business methods. In the past, Jingyi had several fixed points for purchasing raw materials every year, especially after the Spring Festival, there was usually a wave of good market conditions. Jingyi every year After the large amount of working capital is withdrawn before the Spring Festival, it will generally be used to purchase raw materials. “Affected by the epidemic during the Spring Festival this year, there are no orders and no workers. A large number of inventory materials are falling. Polyester fell by 25%, cellulose fiber, cotton, etc. have all fallen. So far, they have not returned to the level before the Spring Festival. What’s next? I believe many entrepreneurs will have a question mark as to whether they should buy raw materials before the Spring Festival next year.”
Facing difficulties and cultivating new opportunities in the crisis
“The epidemic has both short-term impact on the industry and long-term impact in the future. Coupled with trade frictions and tense In international relations, etc., the industry needs to be prepared for a protracted war. A lot of time has passed and will never come back. In the past, when the industry was booming, you could make money by investing in anything. Now we need to take a look at it. In response to the epidemic, trade frictions, etc. Factors, how to sort out and deal with the short-term and long-term problems faced by the industry.” Mei Feng’s thinking has something in common. Sunshine Group, Fuhua Weaving, and Jingyi have all seized new opportunities in actively responding to the epidemic crisis and found their own development paths.
As a manufacturing enterprise, Sunshine Group has two gains during the epidemic.Institutions and business entities have the responsibility to work hard to explore and provide policy and talent support for the “dual cycle” of the entire industry chain.
In Chen Lu’s view, to grasp the “dual circulation”, firstly, the financial industry needs to support the development of the real economy, and secondly, the sequence of internal circulation needs to be considered. The textile industry is no longer a labor-intensive industry in the eyes of people in the past. It is actually a technology-intensive and capital-intensive industry. Therefore, in order to change the views of other industries, especially the financial industry, on the textile industry, communication and guidance must be provided through the government, industry associations, etc. Just like studying new industries, we should study how to introduce social capital into the textile industry, because the next transformation and upgrading of the industry cannot be achieved without a large amount of funds. The financial industry must change their views on the textile industry. Japan, Germany, and Switzerland have spent many years developing advanced equipment and spent a lot of money. The financial industry has played a vital role and can be used as a reference. The second suggestion is to let the water go to fish, pay more attention to textile small and medium-sized enterprises in terms of fee reduction and tax reduction, expand the scope of some tax deductions, increase the vitality of the market without increasing the market volume, and divert the corresponding capital flow. In the textile industry, we promote the transformation and upgrading of enterprises in the industry, so that employees can earn more income and feed back to the consumer market.
As my country’s epidemic prevention and control is entering the “new normal”, the operations of all walks of life are gradually recovering. my country’s economic growth in the second quarter was significantly better than expected, and economic development has shown a steady improvement trend, adding to the world economy. A rare touch of vitality and bright color. However, the current world economic situation is still complex and severe, with great instability and uncertainty. Many of the problems we encounter are mid- to long-term. We must accelerate the formation of a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other. Adhere to the strategic direction of structural adjustment, rely more on technological innovation, achieve positive “dual cycle” interaction, and firmly hold the initiative in competition and development in our own hands. As Mei Feng said, “Transformation creates new opportunities, and reform opens up new prospects. Although we are facing unprecedented difficulties and complex situations, we still believe that through collaborative cooperation between the upstream and downstream of the industry, we can grasp the dual cycle and run our own affairs well. I believe that enterprises can overcome the difficulties, the industry can overcome the difficulties, and together we can open up a new world.”
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