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The Belt and Road Initiative brings new opportunities for the Chinese textile industry to go global
The Belt and Road Initiative brings new opportunities for the Chinese textile industry to go global
Egypt and Romania, sponsored by the China Textile Industry Federation International Trade Office, China Textile International Capacity Cooperation Enterprise Alliance and the China Council for the Promotion of International Trade's Textile Industry Branch, will be held at the National Exhibition on the afternoon of March 14, 2018. The center (Shanghai) is held. This year's recommendation will focus on Egypt and Romania, the key partners in Africa and Central and Eastern Europe along the Belt and Road Initiative, and explore the investment opportunities and challenges of the Egyptian and Romanian textile industries.
The promotion invited Mr. Mahfouz MT Marzouk, Vice Chairman of the Suez Canal Economic Zone in Egypt, Deputy General Manager Li Daixin of China-Africa TEDA Investment Co., Ltd., and Consul General Aurelian Neagu of the Romanian Consulate General in Shanghai to introduce the investment policies of the Egyptian and Romanian textile and garment industries. The environment, as well as the latest developments and blueprints for the Egyptian Suez Canal Economic Zone and the China-Egypt Teda Suez Economic and Trade Cooperation Zone.
Xu Yingxin, vice chairman of the China National Textile and Apparel Council, mentioned in his speech that the 19th National Congress described the blueprint for China's development over the next 30 years and also set a programmatic banner for the development of China's textile industry. In the new era, China's economy has shifted from a high-speed growth phase to a high-quality development phase. “The growing needs of the people for a better life” is the core driving force for the high-quality development of the industry. In the new historical stage, China's textile industry has defined the new positioning of “scientific, fashion, green” industries, namely, the innovation-driven technology industry,the responsibility-oriented green industry, and the culture-led fashion industry. The “Belt and Road Initiative” coincides with the critical period of the historic changes in China's textile industry, bringing new opportunities for China's textile industry to “go global”, integrate global resources and achieve high quality development. There are 65 countries and regions along the “Belt and Road”, with a population of 4.4 billion and a total economic output of about 21 trillion US dollars, accounting for 29% of the world. It is an important emerging market that cannot be ignored. In 2017, China's “Belt and Road” construction entered a new stage of comprehensive and pragmatic cooperation, and trade and investment cooperation continued to deepen.In 2017, China’s textile and apparel exports totaled US$266.95 billion, an increase of 1.53% from the previous year. In China's textile and apparel export market structure, textile and apparel exports to the countries along the “Belt and Road” accounted for 33.36%, and the traditional export markets were 18.09%, 17.43% and 7.8% respectively. It can be seen from the above data that with the in-depth promotion of the “Belt and Road Initiative”, the results have gradually emerged. In 2017, China directly invested US$14.4 billion in countries along the route. Textile and garment enterprises also actively implemented the “Belt and Road Initiative” initiative and launched a strategic arrangement in countries along the route, not only in neighboring countries,but also extended to Central and Eastern Europe and Africa to make full use of relevant The country's superiority endowment,control the superior resources of the vertical industrial chain, and enhance the international competitiveness of enterprises.
The “Belt and Road” meeting point – the new kinetic energy of investment in Egypt
As the meeting point of the “Silk Road Economic Belt” and the “21st Century Maritime Silk Road”, Egypt’s positioning of China’s foreign trade and economic cooperation map has once again been strengthened. The complementary advantages of the “Belt and Road” between China and Egypt are obvious. Egypt is located in the three major continents of Asia, Africa and Europe. The regional advantage of the “One Belt, One Road” western junction is outstanding. The construction of the new Suez Canal and Canal Corridor development project will bring a lot of investment opportunities.Mr. Mahfouz M.T. Marzouk, Vice President of the Suez Canal Economic Zone, gave a detailed introduction to the Egyptian economy and textile and apparel industry profile, infrastructure, labor, relevant laws and regulations, and opportunities in the Suez Canal Economic Zone. Egypt has a relatively complete industrial chain, and the textile industry accounts for 3% of the country's GDP,accounting for 27% of the total manufacturing output. There are currently about 5,500 textile and garment enterprises in Egypt,employing about 1.5 million people, accounting for 30% of the country's industrial employment. In the 2016/2017 fiscal year, Egyptian textile exports were US$771 million, an increase of 1.31% year-on-year. The textile industry was included in one of the key developments of the Egyptian government. In 2016, the Egyptian Ministry of Trade and Industry issued industrial licenses to 255 textile companies, using an investment of 2.3 billion Egyptian pounds to provide about 51,000 jobs. The Egyptian government has proposed a vision for the development of the textile industry in 2025. It plans to attract overseas investment with preferential policies, create 1 million jobs and increase exports to 10 billion US dollars. After 2014, the political situation in Egypt has stabilized and the economic situation has clearly improved. The Egyptian government has introduced a series of new relevant laws and regulations, such as the New Investment Law, to improve the investment environment and attract foreign investment. Evolving infrastructure, stable and low-cost electricity, low labor costs, raw material advantages, and the development of the Suez Canal Economic Zone, a world-class value-added service center, will make Egypt a hot spot for African manufacturing.
TEDA Cooperation Zone Helps Chinese Enterprises to "Go In" Africa
With the continuous development of China's “Belt and Road Initiative” and the development plan of Egypt's “Suez Canal Corridor”, the establishment of China's overseas economic and trade cooperation zone in Egypt has far-reaching significance for strengthening and deepening the capacity cooperation between the two countries. Egypt has been included in one of the countries that are suitable for building China's overseas economic and trade cooperation zones, with a focus on promotion. In 2008, China-Africa TEDA Investment Co., Ltd., which was established by Tianjin TEDA Investment Holdings Co., Ltd. and the China-Africa Development Fund, officially built the China-Egyptian Teda Suez Economic and Trade Cooperation Zone. After nearly 10 years of development and construction, it has gradually become the capacity of China and Egypt. An important platform for cooperation. Li Dexin, deputy general manager of China-Africa TEDA Investment Co.,Ltd. introduced: The first phase of TEDA Cooperation Zone covers an area of 1.34 square kilometers, and the accumulated investment in development and construction is US$105 million. All of them have been developed and the land is sold out. The park has complete supporting facilities, including China Small Business Incubation Park with 12 standard factory buildings; a comprehensive supporting service center including investment service building, four-star hotel and staff apartment; and supporting entertainment facilities such as TEDA Paradise. As of the end of 2016, the value of the first phase of the TEDA Cooperation Zone was US$153 million,attracting nearly 70 companies, including 32 manufacturing companies, which attracted a total investment of nearly US$1 billion and achieved annual sales of US$180 million. The export volume was 290 million U.S. dollars, and nearly 3,000 people were employed. The TEDA Cooperation Zone Phase II six square kilometer project plans a total investment of 230 million US dollars,plans to attract about 150-180 companies, is expected to attract investment of up to 2 billion US dollars, achieve sales of 8-10 billion US dollars, provide employment opportunities of about 40,000 One. On November 30, 2015, the first land of two square kilometers of the second phase was officially handed over. With the January 21, 2016, the development and construction of the first block of the second phase of the project was officially launched. At present, the second phase of the project has invested a total of 45 million US dollars, the first phase of two square kilometers of roads and municipal infrastructure projects have been completed in the first quarter of 2017. The Suez Bay Northwest Economic Zone is located at the beginning of the Suez Canal Corridor and will give priority to Egypt's strong resource allocation. The TEDA Cooperation Zone Phase II project is a key project of the region and is located at the golden convergence point of the two national strategies. A once-in-a-lifetime development opportunity.
Demystifying the new opportunities of the "European Tiger" textile and garment industry
As a newly industrialized country, Romania is also an important country along the “One Belt, One Road” initiative. Mr. Neagu, Consul General of the Romanian Consulate General in Shanghai pointed out that Romania is a traditional textile and garment industry in Eastern Europe. The textile and garment industry is its traditional pillar industry and plays an important role in the national economy and foreign trade. At present, there are about 6,096 textile and garment enterprises in the country, and the number of employees is 190,381. Luo garment processing industry has a good foundation and a relatively advanced technical level. 5% of the enterprises have been producing garments in the form of processing, and 91% of the products are exported to the EU. The main products are tights and women's tops (smocks). The Romanian industry average wage is 750 Euro/month, while the textile and apparel industry is 500 Euro/month. Due to the weakness of the Romanian textile industry, it is necessary to import yarns, accessories and accessories from abroad. If the value-added rate of processing in Romania is above 51%, it can be regarded as a country that produces domestic products, products entering the EU market and having a free trade agreement with the EU. Duty-free and quota-free, which also brings a broad space for cooperation between Chinese garment upstream enterprises and Romanian garment enterprises. If Chinese companies can set up fabric processing plants in Luo's free trade port, they can enjoy the active policy support of the Romanian government.
As one of the main supporting activities of the Spring Exhibition organized by the China National Textile and Apparel Federation, the promotion was paid attention to by many textile and apparel backbone enterprises and exhibitors. The meeting was full of seats and it was felt that domestic textile enterprises were eager to seize the “one area”. The new opportunities brought about by the “One Way” initiative will accelerate transformation and upgrading and further enhance international competitiveness. The meeting was chaired by Lin Yunfeng, vice president of the Textile Industry Branch of the China Council for the Promotion of International Trade.
The proposal and implementation of the “Belt and Road Initiative” has brought many opportunities to the development of Chinese textile and garment enterprises. Chinese textile companies should use overseas investment and mergers and acquisitions to vertically extend the industrial chain of various high-quality resources such as raw materials, design, brands and market channels, thereby increasing the added value of the entire industry. In addition, we will fully combine and utilize the complementarity of the countries and regions along the “Belt and Road” and China's textile and apparel fields to achieve sharing and win-win results. China Textile International Capacity Cooperation Enterprise Alliance, China Textile Industry Federation International Trade Office and China Council for the Promotion of International Trade Textile Industry Branch will also continue to serve the Chinese enterprises' health “going out” and build a bridge for cooperation between Chinese and foreign textile enterprises.
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