Blog
Blog
06
2023
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01
China Long Fiber Weaving Association's Initiative to Avoid Blind Investment
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Recently, the China Long Filament Weaving Association's third executive council meeting reviewed and approved the "Initiative to Avoid Blind Investment". The following is the full text of the initiative:
China is the largest producer of long filament weaving in the world, with international competitive advantages. Long filament weaving is one of the fastest-growing textile industries in China. From 2000 to 2015, China's chemical fiber long filament weaving industry achieved an average annual growth rate of over 15%. Since 2016, market demand has entered a phase of slow growth, and the industry has reached a considerable scale. The total output of the industry increased from 43.3 billion meters in 2015 to 55.7 billion meters in 2021, with an average annual growth of 4.3%.
Due to the low investment cost, high efficiency, and relatively low entry barriers in the long filament weaving industry, capacity has significantly expanded in recent years, but the growth rate of output has slowed down. According to statistics, by the end of 2019, the scale of weaving machines in China's long filament weaving industry reached 700,000 units, including 640,000 water jet looms. In that year, the output of chemical fiber long filament fabrics in China was 55 billion meters. By the end of 2021, the scale of weaving machines in the long filament weaving industry reached 795,000 units, including 730,000 water jet looms, and the output of long filament fabrics was 55.7 billion meters. Comparing these two sets of data, it can be seen that under the impact of the COVID-19 pandemic and the turbulence of international political and economic situations, the scale of water jet looms in China still expanded at an average annual rate of 6.8%, while the output only grew at an average annual rate of 0.6%. This indicates that the entire industry is clearly underutilized, and the newly added capacity is not being effectively released.
In the future, the development focus of the long filament weaving industry needs to shift from capacity expansion to technological progress and upgrades, as well as product development and innovation. To this end, we propose the following initiatives to the entire industry.
1. Avoid blind expansion and maintain a reasonable growth rate. The capacity growth of the long filament weaving industry should not be too fast and should keep pace with market demand. In the absence of clear expectations for demand growth, stable customer resources, and unique product advantages, no enterprise should blindly add capacity. We will never encourage blind expansion or simply increasing volume.
2. Strengthen product innovation and build core competitiveness. This year's market conditions have once again proven that ordinary low-end products are facing unprecedented fierce competition. Once enterprises start to engage in low-price dumping and retaining staff by maintaining production, they will fall into a passive position, which will also have adverse effects on the entire industry, leading to low-level vicious competition. Enterprises should, and must, prioritize "product innovation" as a key focus for development. The path of mass-producing generic products is absolutely not viable. We should actively focus on product innovation, proactively promote equipment upgrades and technological transformations, and achieve effective enhancement of the core competitiveness of enterprises and the overall upgrade and transformation of the industry.
We firmly believe that with the united efforts of all long filament weaving entrepreneurs, China's long filament weaving industry will surely achieve higher levels and more sustainable high-quality development in the new development stage.
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