China's textile industry investment in fixed assets resolve

 

The current main problems

In 2004 the textile industry, although investment growth dropped significantly, the investment structure has improved, but still there is a big difference between some industries and areas, due to increased risk of excessive investment growth industry disorderly competition still exists.

Excessive investment in some industries the risk of disorderly competition still exists. Chemical fiber industry investment grew 49.5%, including 68% growth in chemical fiber pulp poise, nylon fiber growth of 76.6%, spandex and other fibers grew 164.8 percent, these types of products production capacity speeding growth, not only resulting in tight supply of raw materials prices high, also intensified the competition between products, some products prices continued to fall. Textile products investment increase of up to 71%, plans to invest more than 1 times the industry average profit margin fell 0.25 percentage points more than in 2003.

In parts of the financial strain, lower investment completion rate. At the national rise of central, western development, the revitalization of northeast old industrial base policy support, Midwest and Northeast regions to invest significantly accelerated, led the development of the region's textile industry. But there due to the excessive growth of investment, financing difficulties, the project construction period extended situation. As the three northeastern provinces, plans to invest 100 billion yuan, nearly double higher than in 2003. Jilin, Liaoning Province, the investment growth rate more than 100%. The western region accounted for only 36% of the actual investment planned investment, less than 43% of the level of the whole industry, including Xinjiang Uygur Autonomous Region plans to invest 9.5 billion yuan, the actual investment of 1.9 billion yuan, accounting for only 20% of the planned investment.

In 2005 the overall trend Textile Investment Development

2005 domestic and international economic situation is favorable to the development of the textile industry. Textile industry investment will continue to grow, but with the country continue to strengthen and improve the implementation and coal, electricity, oil, transport bottlenecks and other constraints of macro-control measures, investment growth will continue to fall.

- Domestic and international economy continues to improve, the textile industry is conducive to the growth of investment

1, the international economic situation is favorable to the development of the textile industry. In 2005 the World Bank expects world economic growth of about 35% of international trade growth of about 8%, although lower than the 2004 growth rate, but still rapid growth in recent years, one year, textile and apparel trade will continue to grow situation: in 2005 the global textile trade integration to achieve, so that our many years subject to export quotas potential further release, will inevitably bring about the expansion of China's textile and apparel market share; the global textile industry structure will further drive the international capital transfer to China, promoting China adjustment and development of the textile industry.

2, the expansion of domestic economic development and market demand will promote the expansion of textile development and investment. In 2005 China's economy will continue to maintain a rapid growth momentum, GDP is expected to grow by more than 8%; investment system reform and grain marketing system reform launched, urbanization, industrialization and consumption structure will enable investment and consumption continued to grow; the Western Development , central China, the revitalization of old industrial bases in the development strategy, will promote China's central and western regions industrial structure adjustment. Further narrow the gap, pulling Textile Investment growth; cotton supply and demand situation is getting better, gradually with the international cotton prices and maintained at a reasonable level, conducive to the development of China's textile and improve the competitiveness of the textile industry.

- By the macro-control policies and resource constraints and other factors, the textile investment growth will continue to fall.

1, the national macro-control policies continue to control the excessive growth of investment. States will continue to strengthen the settlement of investment growth too fast, the structural imbalance between investment and consumption as the main objective of macro-control, the focus always has the land, the money supply two gates, money supply situation will remain tight in some areas and inhibition of some enterprises investment behavior.

2, coal, electricity and other resource constraints in the year 2005 is difficult to ease oil prices high, the gap continues to widen major chemical fiber raw materials, raw material prices and other factors will curb the rapid growth of investment.

3, a few years ago out of the quota of positive expectations, a considerable number of companies have completed the initial expansion capability, external investment momentum weakened. Textile investment will further focus on improving quality, improving efficiency, increase the added value carried out textile trade friction intensified prompting investors to more rational, simple expansion of investment behavior can win the amount will be more cautious


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