Twenty years after joining the WTO, China’s textile industry has become stronger in participating in international competition
Twenty years ago, on December 11, 2001, China joined the World Trade Organization (WTO). From today’s perspective, it is still a “milestone” event.
On the eve of China’s accession to the WTO in 2001, all major media were reporting and analyzing the opportunities that China’s accession would bring to China. Among them, voices that believed that China’s textile industry would benefit the most were heard. Twenty years have passed, and today’s China’s textile industry is no longer what it used to be. So, what has China’s textile industry brought to China’s textile industry after joining the WTO? What milestone has it opened for China’s textile industry?
The reporter had a special interview with Sun Huaibin, vice president of the China Textile Industry Federation, to explain some of the profound changes that have taken place in China’s textile industry in the 20 years since joining the WTO.
10 years of golden growth
Freedom of trade and investment brings major opportunities to China’s textile industry
“Joining the WTO” is the right choice made by China to conform to the development trend of economic globalization. It not only activates the surging spring tide of its own development, but also activates the vitality of the world economy.
Twenty years ago, a German economist once analyzed, “Now in the two major markets of the United States and the European Union, China has two major categories of products that have a large share. , both exceed 50%. One category is shoes and the other category is toys. However, there is another category of Chinese products whose advantages in the European and American markets have not been fully demonstrated. Its share is much lower than that of shoes and toys. This The product is textiles and clothing.” Today, “Made in China” and even “Design in China” textiles and clothing have long become an indispensable and important part of the global consumer market.
Comparing the position of China’s textile industry in the global industrial structure today, Sun Huaibin analyzed that the two important opportunities brought by joining the WTO are trade liberalization and investment liberalization.
Before joining the WTO, export quotas have always been an insurmountable gap for most Chinese textile companies. Sun Huaibin said that the biggest opportunity for China’s textile industry after joining the WTO is trade liberalization. For my country’s textile industry, breaking the restrictions of the quota system has ushered in new trade development opportunities for China’s textile industry.
In 2005, the quota system that had checked and balanced global textile and apparel trade for 40 years came to an end. According to the ATC agreement at that time, 51% of the quotas were canceled by December 31, 2004. Starting from January 1, 2005, the remaining 49% were canceled all at once, which means that starting from 2005, China’s textile industry began to enter the quota-free era. , also known as the post-quota era, China began to enjoy the trade liberalization rights of members of the World Trade Organization.
Since joining the WTO, China’s textile exports have begun to grow significantly. “In 2001, my country’s textile exports were approximately US$53 billion, and by 2010 they reached more than US$250 billion. The trade liberalization brought about by the abolition of the quota system has promoted the ‘golden growth decade’ of China’s textile industry.” In 2014 China’s textile exports have reached an all-time peak of US$306.9 billion. It can be said that this is the full manifestation of Made in China in the field of international textile competition.
The second opportunity is investment liberalization. With the opening of the export market, Chinese textile companies have begun to seek transnational development and configure transnational industrial chains and supply chains while going abroad with their products. This has greatly improved the development level of the economic globalization of China’s textile industry and gradually formed various global The characteristics of differentiated layout in large regions have also driven the development of textile production, employment and consumption in capital-importing countries.
However, the process of trade liberalization has not been smooth sailing. In 2001, just after China joined the WTO, the United States began to restrict the entry of Chinese textiles; in 2003, the first special guarantee case against China was launched against textile products in paragraph 242; in 2005, after the quotas were completely cancelled, European and American countries signed the China-Europe and China-U.S. The memorandum extends the quantitative restrictions on some textiles…
In this regard, Sun Huaibin said that after China joined the WTO, its exports increased significantly, which changed the original trade and interest pattern in the international market. Some countries even politicized trade issues, resulting in trade frictions.
“I don’t think it is necessary to regard trade frictions as a scourge. As long as there is such an imbalance of interests or changes in the interest structure, there will be some gaming processes. This is difficult to avoid, but we are determined to Oppose the politicization of trade issues and unwarranted sanctions. On the one hand, we must insist on participating in international competition equally and fairly. On the other hand, we must also adapt to changes in some international trends, such as green development, social responsibility, etc. We need to improve in this regard. Adapt to and even promote the development of trends.” Sun Huaibin pointed out that the ultimate goal of China’s textile industry is to promote the realization of common interests in the direction of economic globalization and promote cooperation and win-win results. In particular, as a major textile producer and trading country, China must maintain the world market order from a higher perspective and promote and even lead the healthy and sustainable development of the world’s textile economy under economic globalization.
The goal of becoming a textile power is achieved
Deeply adjust the industrial structure and promote high quality development
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In this regard, Sun Huaibin said that in the context of dual circulation, we must insist on focusing on internal circulation, but it does not close the door to the country, but needs to continue to open the door, further insist on opening up, improve the level of openness, and utilize various foreign resources To make up for the shortcomings in the industrial chain, at the same time, we must participate in the “Belt and Road” construction, strengthen international production capacity cooperation, realize some domestic production capacity through the international market, and let international and domestic Together, this is a contribution to both the Chinese economy and the world economy.
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