Transcript PowerPoint Presentation - Milano Fashion Global Summit

Current China Macro Situations in
Economy and Textile
industry
Du Yuzhou
China National Textile and Apparel Council
September 7th, 2012




I. Economic operation in the first half of
2012
II. Macro-economic guides and thoughts
III. China textile and garment industry is
undergoing the crucial moment of
transferring and upgrading
IV. Find China/Italy bilateral textile and garment
complementation, expand cooperation areas,
overcome difficulties and build up win-win future
2
I. Economic operation in the first half of 2012
Faced with complicated and volatile domestic and
foreign economic situation in the first half of 2012,
Chinese government puts priority on development,
follow a proactive fiscal policy and prudent monetary
policy, and expand dimension of micro- and
expectation controls. Economic operation achieves
steady and robust development.
(i) Gross domestic product realizes 22.7098 trillion yuan
in the first half of 2012, increases by 7.8% year on year
(calculated in comparable price). Increase rate is 8.1% in
the first quarter and 7.6% in the second quarter.
(ii) Agricultural production remains steady with a
harvest of summer grain crops, up by 2.8% than that
of last year.
(iii) Industrial manufacturing continues to expand whereas
profits of enterprises drop on a year-on-year basis.
(iv) Fixed-asset investment steadily grows. Increase rate of
infrastructure investment turns to positive growth
(v) Market sales continue to grow
- Total sales value of social consumer goods is 9.8222
trillion yuan, increases by 14.4% year on year.
(vi) Import and export increase slightly
- Total value of import and export is USD 1.83984
trillion, increases by 8.0%. Increase rate is 0.8
percentage point higher than that of first quarter.
(vii) Money supply steadily increases and newly-added
loans also increase
- At the end of June, balance of broad money is 92.5 trillion
yuan whereas balance of narrow money is 28.75 trillion
yuan.
(viii) Increase rate of CPI and index of producer price
continues to decline
- CPI increases 3.3% year on year CPIs of urban and
rural areas increase 3.3% and 3.3% respectively. In
the first half of the year, index of producer price
declines by 0.6% year on year.
(ix) Incomes of urban and rural citizens increase relatively
fast, income of rural citizens increases faster than that of
urban citizens
- Total income of urban citizens per capita is 13679 yuan
and disposable income of urban citizens is 12,509 yuan.
Total income of rural citizens per capita is 4,303 yuan.
(x) Increase rate of textile industry is slowing down, export
slightly decreases and profit drops.
- China textile industry is faced with scant external
demands, decreasing domestic demands, price gap of
cotton between domestic and foreign markets and
increasing cost prices of raw materials.
- Exported textile and garment realize value of USD
137.401 billion.
- Export of cotton production decreases dramatically.
II. Macro-economic guides and thoughts
(i) China is still undergoing an important strategic
period for development
(ii) We should lay the solid foundation in the next five
years to achieve the goals of realizing a well-off
society in all-round way in 2020 and socialist
modernization in the mid of 21st century
(iii) In the second half of this year, we would follow the
path of scientific development to fasten
transformation of economic development patterns and
adjust structures
- Uphold steady and proactive measures as the theme
- Expand domestic demand as the starting point
- Develop the real economy as the foundation
- Fasten reform and innovation as the strength
- Safeguard and improve well-being of people as the aim
III. China textile and garment industry is
undergoing the crucial moment of transferring and
upgrading
(i) Comply with new expectations to have a better life of
all ethnic groups in China
(1) In line with new expectations of people’s better life
- In the first 11 years of 21st century, GDP per capita
increases 9.74 %.
- Disposable income of urban citizens per capita increases
9.55% yearly.
- Net income of rural citizens per capita increases 7.43%.
- Garment expenditure of urban people per capita increases
14.17% yearly.
(2) In line with new expectations to have a better job
- Number of employees in the whole industry is more than 20
million.
- Number of employees of enterprises above designated size
(enterprises with yearly sales above 20 million RMB or USD
3.15 million) is 10 million or so.
- Small or micro garment enterprises below designated size
create 48% value of the whole industry, and number of
employee accounts for 50% of the whole industry.
- Salary of employees of enterprises above designated size in
textile and garment industry from 2000 to 2010 increases by
2.52 times.
(3) In line with new expectations to have a better ecological
environment
- Textile and garment industry should follow a green, lowcarbon and recyclable pattern.
- In the “11th Five Year Plan” period, textile and garment
industry decreases energy consumption per unit of added
value by 32%. The volume of recycled fiber produced each
year is 4 million tons.
- In the period of “12th Five Year Plan”, indexes listed above
would continue to go down. It is estimated in 2020, the
volume of recycled fiber producd each year will be 8 million
tons.
(ii) Fit new demands of manufacturing in the later stage of
industrialization
(1) Important foundation should be laid down in textile
industry by building up modern industrial system
- One aim for the “12th Five Year Plan” is to build up a
modern industrial system uphold Chinese industrialization
path, fit variations in market demands and improve
competitiveness in global economy.
- China textile and garment industry firstly have to satisfy
hundreds of millions of people’s physical and cultural needs.
- In order to realize the goal, we have to fasten upgrading of
new technology and modern manufacturing system to provide
new fiber resources, equipments and services.
- Chemical fiber industry has become a solid part in China
textile industry and occupies self-owned IPR and national
advanced production equipment to realize super-large scale,
differentiation and flexibility.
- Textile equipment plays an important role in promotion of
digital intelligence, creativity, informatization and quick
response.
- Printing and dying equipment is highly efficient in energy
saving and emission reduction.
- Chemical fibers, textile and garment industry has an increase
rate of 29% per year in the last 10 years in advancing their
technologies and equipment.
(2) Textile industry provides important products for
industrialization ---Technical textiles
- Industrialization continues to increase the demand of
technical textiles. Technical textiles plays an important role
in each and every sector of society.
- During “the 12th five year plan” period, we would put
high-tech textile into market.
(iii) Actively create new advantages in participating in
international economic cooperation and competition
(1) Consolidate Textile and Apparel Industry as the most
advantageous industry in China
- China is the biggest exporting country in textile and apparel
industry, which is very significant for building up a wellbeing society in all-round way.
(2) Severe challenges faced by China textile and garment
industry
- Under the shadow of global financial crisis and weak
international demand since the beginning of “the 12th five
year plan”, China textile and garment industry faces more
severe challenges in slowing down of domestic demands,
international high-end brandings and challenges of lowcosts countries.
- China textile industry should tackle lack of productivity
and try to create new advantages by cooperating and
competing in the international market.
(3) China textile and garment industry fastens its pace of
transformation, adjusts structure, create new advantages
build up power country in textile and garment industry.
- fasten structure adjustment
- transfer from processing and manufacturing to independent
R&D and marketing channels
- uphold the system of “quality, creativity, quick response and
social responsibility”
- build up supply chain and improve social productivities
- take full advantage of the eastern area and facilitate industrial
transfer to the mid-western area
- deepen reform and opening, promote the integration of
resources at home and abroad and expand international
cooperation
IV. Find China/Italy bilateral textile and garment
complementation, expand cooperation areas, overcome
difficulties and build up win-win future





(i) Consolidate cooperative foundation
——the advantage of ITALY
design,fine production,brand,sales management ,social
network, and so on
——the advantage of CHINA
manpower ,opening ,the market scale of fashion ,and so
on
(ii) Build up a new era for cooperation
(1) Recognize China’s market economy status; promote
China/ Europe strategic partnership
(2) Promote free-trade negotiation
(3) Develop all-rounded and in-depth cooperation in
design, manufacture, capital financing, branding,
marketing and human resources.
27
Thank you!