In order to grasp the overall operation situation, new trend and trend of cotton textile industry in 2018, we should understand the potential risks and Countermeasures in the operation of the cotton industry.

In the 12 months from mid 2018 to mid January 2019, the Chinese Cotton Textile Industry Association sent 11 research teams to 9 provinces and autonomous regions in Shandong, Hebei, Henan, Hubei, Hunan, Jiangsu, Zhejiang, Fujian, Xinjiang and so on, and conducted on-the-spot research on the production and operation of the cotton textile enterprises and industrial clusters, the Sino US trade frictions, the reform of the new social security system, the cotton system reform, the import quota reform and the rotation of cotton reserves, the pformation and upgrading of industries, and the direction of policy support, so as to fully understand the operation of the industry and consult the enterprises for their views and suggestions on the development of the industry.

The survey involved about 11 million spindles and 9000 looms.

Visiting enterprises cover spinning, weaving, home textile and garment enterprises.

From the visit situation, the enterprises in the first half of 2018 were in good working condition. In the second half of the year, especially after 9-10 months, the ten peak season of gold and silver did not appear during the peak season, especially in the Sino US trade friction.

From the boot situation, the normal start-up enterprises accounted for about 80%; from raw material and product inventory situation, raw material inventory kept at normal level of enterprises accounted for about 87%, and the stock of products kept at the normal level accounted for about 88% of the enterprises.

For the 2019 operation situation, enterprises said that Sino US trade friction was the biggest uncertainty factor. Although the heads of state of the two countries reached a consensus to stop the Levy of new tariffs, the two countries had in-depth exchanges on Trade and structural issues of common concern at the just concluded ministerial consultation on economic and trade issues, but there are still many uncertainties. The downstream customers are cautious about their orders, especially those with relatively high export products.

The production cost is high.

Visiting enterprises generally reflect high production costs, especially labor costs, not only high wages and recruitment difficulties, but also the shortage of young workers.

There are still many problems in weaving enterprises such as large volume of steam and large fluctuation of steam price.

At the same time, it is expected that the social security payment reform will greatly increase the cost of enterprises.

In addition, due to the generally rising prices of domestic means of production, China's yarn products have lost their competitive edge, and imported yarn from India, Pakistan and Vietnam has poured into our market.

Financing difficulties.

Textile industry as a traditional labor-intensive industry, because of the low level of average profit, the financial sector is listed in high-risk industries.

With the upgrading of the product innovation ability and profitability of the textile industry, some advantageous enterprises have been supported by financial institutions, but the financing environment of small and micro enterprises has not been substantially improved.

Environmental protection pressure.

At present, China attaches great importance to the problem of environmental pollution. For example, Changzhou City, Jiangsu Province, as the Taihu rim area, increased environmental protection efforts in 2018. In addition to requiring emission targets for textile printing and dyeing enterprises to discharge, the restrictions on the number of equipment to be opened and the uncertainty of production increased during the early warning period of air pollution, which will have an impact on the timely delivery of orders and orders.

In some areas, the policy of "high levy and low deduction" has not yet landed.

"High levy and low deduction" has been solved in many provinces and cities throughout the country. According to the investigation, some areas such as Xinjiang and Fujian still have no benefit. The difference between taxes and fees has always been borne by enterprises. This is obviously a decline in competitiveness for small profit textile enterprises, and textile enterprises hope to enjoy the benefits of this policy as soon as possible.

In terms of cotton supply and demand, based on the current market situation at home and abroad, enterprises hope that the state can release cotton import quota control as soon as possible, open up two cotton markets at home and abroad, make full use of international cotton resources, stabilize the dominant position of China's textile products, and hope that import quotas can benefit more enterprises, distribute more pparently, and create an open and fair development environment for cotton textile enterprises.

Secondly, it is suggested to establish a normalized mechanism for cotton reserves, and start the regulation mechanism of the storage and storage according to the difference between the inside and outside cotton prices, make clear expectations for the market, and timely turn in high-quality cotton resources so as to improve the overall quality of cotton reserves and guarantee the cotton demand of domestic textile enterprises.

Facing the current market situation at home and abroad, it is not only the issue of Sino US trade friction. Apart from imported yarn, with the release of Xinjiang's spinning capacity, it will also impact on medium and low count yarn products. Enterprises should avoid homogenization competition with Xinjiang yarns, make differentiated and distinctive products, gradually enhance the level of intelligent equipment, reduce production costs, and enhance the competitiveness of enterprises.

At the same time, the problem of recruitment and employment is becoming increasingly prominent. Transformation and upgrading can not be separated from automation, information technology and high-quality personnel.

Under the trend of automation, informatization and intellectualization, the demand for professional and technical personnel is increasing rapidly. Attracting talents and retaining talents is also the key to the development of enterprises.

With the active guidance and support of the government, cotton textile industry cluster has gradually adapted to the new normal of economic development and accelerated the pace of pformation and upgrading.

For example, Zhangjiagang Jang Kong Town, which is a gathering place for spandex yarn production, has more than 100 kinds of products, including pure cotton, pure hemp, polyester cotton blended, polyester viscose blended, viscose blended polyurethane spandex core, etc. the diversity of products enhances the competitiveness and influence of industrial clusters. The Huarong County Committee and county government of Hunan province seize the opportunity of industrial gradient pfer in developed regions, accelerate the development of textile enterprise clusters, and form a production system from cotton processing, spinning, weaving to home textile, and garment industry chain.