China Filament Weaving Association’s Initiative on Avoiding Blind Investment

China Filament Weaving Association’s Initiative on Avoiding Blind Investment

Recently, the Third Standing Council of the Third Session of the China Filament Weaving Association reviewed and approved the “Initiative on Avoiding Blind Investment”. The following is the full text of the initiative:

Our country is the largest producer of filament weaving industry and has international competitive advantages. Filament weaving is one of the fastest growing textile industries in my country. From 2000 to 2015, my country’s chemical fiber filament weaving industry has achieved an average annual growth rate of more than 15%. Since 2016, market demand has entered a state of slow growth, and the industrial base has reached a considerable scale. The industry’s output has 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, high efficiency and relatively low entry threshold of the filament weaving industry, production capacity has expanded significantly in recent years, but the growth rate of output has slowed down. According to statistics, as of the end of 2019, the scale of my country’s filament weaving industry reached 700,000 looms, including 640,000 water-jet looms. my country’s output of chemical fiber filament fabrics that year was 55 billion meters. As of the end of 2021, the scale of looms in my country’s filament weaving industry reached 795,000, including 730,000 water-jet looms. The output of filament fabrics that year was 55.7 billion meters. Comparing these two sets of data, it can be seen that under the impact of the COVID-19 epidemic and international political and economic turmoil, the scale of my country’s water-jet looms still expanded by an average of 6.8% per year, while output only increased by an average of 0.6% per year. This means that the entire industry is obviously insufficient to start up, and new production capacity cannot be effectively released.

In the future, the development focus of the filament weaving industry needs to shift from the expansion of production capacity to technological progress and upgrading, 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 production capacity of the filament weaving industry should not grow too fast and should keep pace with market demand. Without clear demand growth expectations, stable customer resources and unique product advantages, no company should blindly add production capacity. We never encourage blind expansion and simply increase the volume.

2. Strengthen product innovation and build core competitiveness. This year’s market situation once again proves that ordinary low-end products are facing unprecedented fierce competition. Once companies start dumping at low prices to preserve production and retain employees, they will fall into passivity, which will also have an adverse impact on the entire industry and lead to low-level vicious competition. Enterprises should and must regard “product innovation” as a top priority for development. Large-scale mass production of high-end products is absolutely impossible. It is necessary to actively focus on product innovation, proactively promote equipment upgrades and technological transformation, and achieve the effective improvement of the core competitiveness of enterprises and the upgrading and transformation of the entire industry.

We firmly believe that with the united efforts of all filament weaving entrepreneurs, China’s filament weaving industry will be able to achieve a higher level and more sustainable highqualitydevelopment.