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An Alternative Solution To The Comparative Advantage Of China'S Textile Industry

2008/8/13 15:44:00 28

Development Advantages Of Export Rebate Rate In China'S Textile Industry

The sustainable development of an industry's comparative advantage depends on the proximity of the existing superior products to the more complex and highly technical products.

The sustainable development of a country's comparative advantage depends on the flexibility of reproducing the accumulated production capacity from one product to another.

On the one hand, it requires the government to create a good market environment for entrepreneurs to discover and approach new technologies and products. On the other hand, it also requires the government to formulate forward-looking industrial policies, encourage and support enterprises to invest in new products and technologies, and encourage and support the spread and application of new and high technologies.

The latest adjustment of textile export tax rebate rate is an effective measure for the government to flexibly cope with the domestic and international environmental changes in the eyes of most business people.

Due to the expected impact of the export tax rebate rate increase, some textile enterprises' export contracts have been tried as far as possible.

In the second half of this year, textile and garment exports are expected to reverse the downward trend.

The introduction of the policy will promote the export of textiles, but it will not fundamentally reverse the trend of the decline in export growth. Because the high cost era of textile industry has arrived, reducing the production cost through technological progress, optimizing the product structure to comply with market demand and pursuing high added value is the long-term survival strategy of enterprises. This is also the consensus of most entrepreneurs.

The thought of upgrading China is facing unprecedented challenges, but the direction of strategic development is very clear. That is to accelerate industrial upgrading and promote the pformation of export product structure and economic development mode.

However, judging from this year's situation, this pformation is not easy to achieve, and we need to break through many development bottlenecks, which requires a process.

China's textile industry is at the crossroads of development. We need more rational thinking: why is China's textile industry forming such an export and economic structure?

Is our strategic choice correct?

30 years of development and accumulation on this road will make us hard to get back to, or will we prepare for the future pformation?

In the initial stage of reform and opening up, the highly strengthened two element structure made China's economic development face the contradiction of "advanced industrial structure and the pfer of agricultural labor force for funds".

Faced with the dilemma, China has several options: first, give priority to the development of agriculture and light industry and make up for the pfer of rural labor force, but this choice can not be implemented because of the limited capacity of the domestic market, low consumption level and high accumulation stage of economic construction.

The two is to take Latin American countries to borrow foreign debt, but China is a big country. According to the population size and per capita foreign debt level, the total foreign debt should reach US $1 trillion, and the export scale and debt repayment ability can not be balanced.

The three is to develop the export of mechanical and electrical products, and accumulate funds for the development of heavy industry through international exchange, but the mechanical and electrical products belong to the developed countries' intra circle trade basically, and it is difficult for the backward countries to set foot in it.

Under the prevailing historical conditions, the fourth way, namely, cutting labour intensive products into the "international economic cycle" and rapidly accumulating funds for industrial development, solved the problem of the pfer of rural labor force. It has become a new train of thought that conforms to the national conditions and has an international perspective.

As a result, China's textile industry has become a pioneer industry for developing an export-oriented economy and undertaking international industrial pfer.

The theory of comparative advantage of Yifu Lin, a famous economist in China, systematically expounded the integration of the role of "world factory" into international work for China's abandonment of catching up and overtaking strategy.

According to the theory of comparative advantage, economic development is a gradual process, which can give full play to the comparative advantages of resources at that time, instead of catching up with the comparative advantage.

With the development of economy, capital accumulation and the increase of per capita capital, the structure of resource endowment has also been improved. The leading products of the industry will gradually shift from labor intensive to capital intensive, technology intensive and information intensive.

An economic study concluded that two professors at Harvard University, Hausmann (Hersman) and Rodrik (Roderick), recently published a research in the American Journal of science.

They found that the type of product exported by a country determines their subsequent economic growth capability.

The study also found that the biggest difference between the poor countries and the rich countries in the structure of export products is that poor countries have too few products related to or related to exports, and lack the path of upgrading products or industries.

The study compares a product to a tree. It considers all the products of export as a forest. The enterprises that produce these products are regarded as a group of monkeys living on these different trees, and the process of economic growth or industrial upgrading is like a group of monkeys jumping from a relatively infertile and less fruit forest to a relatively richer and more abundant forest.

Traditional growth theory holds that new forests always exist and can always arrive.

But in fact, monkeys can only skip a limited distance, and can not move freely in different forests. The range of activities can only be adjacent locations.

Experts believe that for a country, it is important not to see the amount of exports, but to see what products are exported, and whether the country can produce such products at the same time produce the ability to produce nearby products.

For example, a region with apple export capacity also has a large degree of portability, which is suitable for apple and pear production in terms of soil conditions, climatic conditions, packaging technology, storage technology, pportation equipment and so on.

Agricultural experts, foreign trade experts, and corresponding inspection techniques, laws and regulations, which are necessary for the export of apples, are also suitable for the export trade of pear.

However, if apple exports are pferred to household electrical appliances, most of the capacity that has been developed for Apple trade will become useless.

In social and economic activities, industrial upgrading is a comprehensive process of many rediscovery, which means that

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