China'S Textile Industry Ran &Nbsp In The Post Quota Era.

The WTO agreement on textiles and clothing stipulates that it has been abolished for decades since January 1, 2005.

China's cheap and fine textiles and garments have gained the right to enter any country freely.

Selling quotas earned hundreds of thousands of times a year.

"Quotas", Shaoxing Jingwei Garments Co., Ltd. boss Yu Weiqiang still remember clearly, "at that time, there are orders, no quota, business can not be done."

In 2003, when Yu Weiqiang gave up his teaching career and went into the sea, Shaoxing became a textile and garment export base because of its superior geographical position.

"Textile industry threshold is low, spend 10 million yuan can run a factory, spend 200 thousand yuan also can run a factory."

Endless factories do not worry about orders. Many overseas buyers are stationed in Shaoxing, and Chinese textile and apparel companies with high cost performance have left their competitors far behind.

However, how to get quotas is always a headache for a large number of small and medium-sized enterprises without bidding qualification.

Yu Weiqiang told reporters that one way to solve the problem is to cooperate with textile export enterprises with tender qualifications, to obtain quotas by participating in the Ministry of Commerce's public bidding, and the other is to purchase quotas directly from large import and export companies.

The quotas of hot products are always scarce resources. In the private sector, agents specializing in "quota" have emerged and have a market.

Yu Weiqiang, who worked with a large company, did not suffer too much on quotas. He even sold quotas that he could not increase to factories. "In one year, I earned hundreds of thousands of dollars by selling quotas."

"The fluctuation of quota price is really fluctuating."

Yu Weiqiang said that the quota price of rush products is high.

The New Year bell struck in 2005, and the quota system died at this moment.

China's textile and garment enterprises, which have long been constrained by quotas, are ambitious. Yu Weiqiang and his factory also have the best time.

The fruits of free trade did not come smoothly.

The quota free sweetness lasted only 5 months, and was broken by the fierce counterattack of protectionism.

In May 13, 2005, the United States decided to take special restrictions on three types of textiles from China.

From June 17th to November 9th, Sino US negotiations on textiles were protracted.

China's textile and apparel industry is also facing a "containment" in another major market, the European Union.

Representatives of the European textile and garment organization rushed to the office of Mandelson, the EU Trade Commissioner every other day, claiming that their market share was shrinking under the impact of cheap products from China.

China's textile wars with its two largest trading partners have mixed too many political elements. Europe and the United States regard China as a scapegoat for their domestic economic problems.

It was a difficult period.

Small businesses began to avoid orders for sensitive goods, while large enterprises bypass South Korea and Canada to export to Europe and America through "re exports".

However, during those days, Yu Weiqiang told reporters that he did not feel frustrated at that time. "The manufacturing capacity of Chinese textile is not a substitute."

They need our products. "

Facts have also proved that no matter how many obstacles the politicians set to Chinese products, they failed to stop Chinese textile and clothing from occupying the shelves of Europe and America.

GAP and WAL-MART are tired of buying clothes that need not a quota - limited country, and on the negotiating table, it's the only choice to shake hands with China.

"After 2005, my business grew more and more smoothly."

Yu Weiqiang said.

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I've had a hard time in the past two years.

Yu Weiqiang already owns a factory that produces tens of millions of yuan a year, but he admitted that he had had a hard time in the past two years.

In 2008, the financial crisis erupted in the United States made Yu Weiqiang deeply feel the less joyful side of economic globalization.

"The proportion of the original export to the United States accounted for 40% to 50%, which has completely shrunk in the past two years.

The main market of the company has shifted to South America. "

Rising costs and weakening US dollar have eroded corporate profits.

The average profit margin of China's textile industry is 3.9%, but this figure obscures the plight of China's poorer textile enterprises.

According to statistics, the profit margin of the industry after ranking 2/3 is only 0.74%.

The weak are ruthlessly encountering elimination.

However, Yu Weiqiang did not want to give up too early.

"The scale of 2007 was almost the same as ours, but then there was an explosive growth."

Domestic sales, online shopping, these are foreign trade enterprises are increasingly concerned about the word, "of course, take a new step is not easy."

Yu Weiqiang said.