A Great Undertaking Comes to Fruition------Du Yuzhou on 60 Years of China Textile

Laying the Foundation

China Textile: As the People's Republic of China celebrates its 60th anniversary, we look back at the coinciding founding of the Chinese textile industry. What are your thoughts?

Du Yuzhou: In the past 60 years, we have not only established an integrated textile industry but also founded a major power in the world textile business. This is a basic view of the whole industry's development in the 60 years of New China's founding.

China Textile: These 60 years can be separated into the 30 years before Deng Xiaoping's economic reforms of 1978 and the 30 years after. What did the Chinese textile industry experience in the first half?

Du Yuzhou: In 1949, the Chinese people only had, on average, 2.31 meters of fabric a year. It wasn't enough to make a suit for adults or even a piece of bedding. The national economy was going through a difficult time. But since the foundation of New China, the Chinese people have stood up and so has the textile industry. Towards the end of the 1970's, an integrated textile industrial system was established. Clothing tickets were supplied. A series of textile basements were set up to satisfy people's needs in Zhengzhou, Xian, Xianyang, as well as three traditional ones in Shanghai, Qingdao, and Tianjin. Textile machine shops and chemical fiber plants were also built. In fact, we provided the diverse group of textile sectors, that had been established as the basis for a well-intergrated industrial line up in China's textile industry.

The Beginning of a Great Undertaking

China Textile: During the first 30 years, we established the integrated textile industrial system. How do we view the past 30 years after the reform?

Du Yuzhou: After the reform, China's textile industry developed quickly. We are well-established as a big player in the world textile industry. At the beginning of the 21st century, we officially announced our intentions to transform China from a big player to a strong player.

China Textile: Enormous changes have taken place in the textile industry in the past 30 years. What events are most significant as mile stones?

Du Yuzhou: Yes, during these 30 years we have seen several indicators of the industry's evolvement. The first indicator is that clothing tickets were eliminated in 1983, an end to a 30-year-old system. It was an exciting and uplifting change, seeing people go from having barely enough cloth and fabric, to having only their basic demands met, to finally having unlimited access. The few years between 1979 and 1983 was an indicator of the rapid development of the textile industry--and the whole economy itself. Consumers' buying behavior has changed; with demands for quantity of fabric and clothing, to switch over to quality and variety, and even to an elevated taste for aesthetic value and style in the1990's.

The beginning of the new century is not only the year-mark, but also a turning point for our industry, as the official announced that, we planed to build China from being merely a large textile industry to being a strong textile industry. Since the end of the last century, China has become the largest country in the world in textile production, export, and consumption. In 2001, China successfully joined the World Trade Organization, an act that brought us an unprecedented opportunities for developing our textile industry further.

Coping with the Times

China Textile: Nowadays, what challenges and opportunities are we facing as we transform from a large textile country to a strong textile country?

Du Yuzhou: There are three main concerns. First, with the global economic development, the internationalization of China's textile industry will be expedited. Second, new innovations in technology have improved the industry, which is now known as being high-tech. Third, our economy and society have developed quickly and steadily. Domestic demand is an impetus for growth in the textile industry.

China Textile: So we have unique opportunities for a transformation. What's the significance for the textile industry? 

Du Yuzhou: In 1978, China's textile and apparel exports accounted for 3.5% in the world and totaled US$24.31 billion. In 2007, it accounted for 30% in the world and reached US$175.6 billion. Morever, our exports proportion of common trade reached 72%, headed 28% in the nation, indicating our industrial chain's capability, that is intergratred now, but not only processing for foreign countries. In addition, with the global economic development, the internal and external markets have been tapped into. The internal market accounted for 80% of the whole textile industry, and the external market accounted for 20%. Some Chinese brands even invested in Japan, America, and Europe.

Innovations in technology have brought us advanced techniques and productivity. This in turn has accelerated changes in multinational production processes, exchange, and circulation mode. Our position in the industry internationally has been climbing.

Domestic demand is also a factor in the development of the Chinese textile industry. Right now, consumption is first on people's minds, then investment. In 2001, China's GDP Per Capita exceeded US$1000. Our target for 2008 was US$3000. From experience, whenever GDP Per Capita is over US$1000, apparel consumption will be boosted. Whenever GDP Per Capita is over US$3000, the desire for fashion is high. Obviously, we have gone forward to this phase.

The other effect of domestic demand is the consumption of industrial textiles, which is a superior condition for China's development. Due to the Chinese economy's rapid development, consumption of textiles in every industry--apparel, home, technical--has increased.

The establishment of a country with a strong textile industry is also beneficial to the environment. Resources will be better conserved, companies will be more eco-friendly, and concepts like recycle economy, carbon economy, clean production processes, and "green" textiles will be promoted. These are all signs of an improved industry.

Road to Revival

China Textile: What impact will the financial crisis have on the current and future development of China's textile industry?

Du Yuzhou: The worldwide economic crisis only offered an incentive to the adjustment and revival of the textile industry. Generally speaking, there are five main transformations that helped realize the industry's rebound. First, we should not rely on the low cost of labor any more, but focus on creativity and technology. We aim to promote self research and development technology, eliminate old machines, enhance labors' quality, facilitate industrail upgrading. Second, From production modes relying on resources to production modes independent of resources transfer, such as creating a recycle and carbon economy and saving fiber resources, energy, and water. Third, going from environmentally harmful to environmentally friendly methods; for instance, developing cleaner production processes and caring about the environment. Fourth, going from the traditional industrial structure to a more modern, intensive one--better communication channels internally, strengthening international cooperation. Finally, a more consummate marketing strategy that betters marketing and reinforces industrial self-discipline, including more awareness for social responsibility, intellectual property rights, and marketing order.

China Textile: How are the five transformations going? What prospects lie in store for the industry?

Du Yuzhou: Since March, China's textile industry has been steadily climbing. Market share leveled off, mainly because it manifested itself within the US market share. From January to June, export share of textile industry to the US increased three points. Furthermore, the pace of technology's advancement has increased. Based on the current situation, we can see that as the orders of eastern coastal enterprises go up, market activity resumes. 

In global terms, the industry should be even more active, not only to continue playing such a pivotal role in the national economy but to strengthen its position internationally as well. 

Source form China Textile Magazine

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