20 years of textile success in China

It's autumn and the China Chamber of Commerce for Import and Export of Textiles (CCCT) is greeting the arrival of its 20th anniversary.

Twenty years ago, CCCT was established as a result of China's structural reforms in foreign trade.

After enduring 20 years' trials and hardships, accompanied by fast development of the import and export of textiles, CCCT has undertaken the "coordination, guidance, consultation and service" of the textile sector, on behalf of all member companies.

CCCT is a bridge between enterprises and the government.

Since China's accession to WTO, CCCT has played an irreplaceable role in defending the interests of the nation and the industry, maintaining a fair trade order, assisting the Chinese government in handling trade conflicts and helping enterprises clear away trade barriers and thus explore global markets.

What CCCT has done has been well-received thereby it has earned trust and support from government and enterprises.

With a membership of less than 300 in the beginning, it has now 10,000 members. Trade volume of its members accounts for over 70 percent of China's total foreign trade of textiles.

Over the past two decades, CCCT has witnessed growth in the import and export of China's textiles.

In 1988 China's exports of textiles was just $11.3 billion. However, in 1994, China grew to be the world's top textile manufacturer and exporter.

With $17.12 billion in export volume last year, China has been the No 1 exporter in the world for the 14th consecutive year.

This year, faced with grim internal and external situations, importers and exporters have spared no efforts to maintain their markets and customers.

Although the growth rate of exports declined in the first seven months, export volumes still sustained a 10 percent increase in the same period.

The growth of the industry could not have been realized without support from our government, hard work done by CCCT staff, and the great endeavors of our enterprises.

For 20 years CCCT has worked hard and has now become the leading textile association in the world.

The export of textiles has been transformed from bad conditions featuring poor operations and management, high-price buybacks and cut-throat competition to a sound situation of reformed enterprise ownership, regulated operation and compliance with the market economy.

Products have been upgraded from low-end to medium and high-level goods that are attractive in price and quality and have become bestsellers in the global market.

The market has developed from unilateral to multilateral. Through 20 years' of progress, the textile sector has become one of the market sectors that are most open, market-oriented and competitive in terms of global competitiveness.

As the representative in the sector, CCCT will never shirk the responsibility of defending the legitimate interests of the nation and its enterprises.

During the initial period of the market economy, CCCT's major responsibility was maintaining export orders through administrative measures.

As the market economy developed, especially after China's WTO entry, CCCT kept pace with the times, adapting itself to being service-oriented and enlarged its services.

In 2005, when the quota regime was lifted, faced with disorder at home and a resurgence of protectionism abroad, CCCT called upon all enterprises to be self-disciplined and tried its best to coordinate interested parties.

Under the guidance of the government, a new management model for exports featuring combined government administration with industrial self-discipline was formed, which was well received by enterprises.

The new model not only gave companies but also safeguarded trade order, thus securing the interests of textile exports after the expiration of the quota regime.

Meanwhile, CCCT has also developed "chamber diplomacy" in the spirit of "more trust, no suspicion, closer dialog, co-development and win-win cooperation" - in an attempt to assist the government in handling trade conflicts.

CCCT has led scores of missions abroad to negotiate and communicate with officials and non-government organizations, which has dispelled worries that China will monopolize global market.

In responding to antidumping proceedings, CCCT contacts local municipal authorities and enterprises as fast as it can and assists related companies in defending their legal interests through active submissions.

The model adopted by CCCT, which brings local government and enterprises together to prepare and submit questionnaires in an anti-dumping investigation has proved to be effective.

We have secured dozens of market economy status grants from the European Union in a single case.

In addition, CCCT encourages its member companies to focus on brand building, product upgrading, quality control, and "going global", in the hope of realizing diversified market access.

This year, faced with unprecedentedly dour export situation, CCCT has done on-the-spot investigations of companies.

Moreover, we have submitted our advice to the authorities and asked for them to create a more favorable environment for our enterprises.

It is gratifying to see that the government has paid attention to the hardships of the textile sector and made announcements of a hike on export tax rebate rates.

Looking back, all sorts of feelings well up in our mind. We will never forget those departments and officials who have given a helping hand to CCCT, for it is them who gave birth to CCCT and gave us a chance to develop.

We will never forget the CCCT's founders and former leaders, for they prepared the ground for us to grow. We will never forget our staff, for it is them who built CCCT, with their hard work and wisdom and realized the glories we see today.

We would like to extend special thanks to all CCCT staff. Thanks to their assistance, encouragement, and collaboration, the import and export of textiles and clothing is going smoothly.

Born in prosperous times, we feel blessed, though aware of the heavy responsibilities we shoulder.

Sino-US agreements and Sino-EU bilateral arrangements will expire at the end of this year, while some updated protective measures are brewing in the US trade associations, so we have a lot of work to do.

In addition, the US has introduced new technical standards that will increase the costs of our exports.

We don't have a rosy outlook in terms of exports to the US next year. What policy will be adopted by the EU is still unknown.

At the same time, the US and EU economies may remain in recession and we have seen a clear picture of weakened markets in the US for textiles this year.

Impacted by the US sub-prime mortgage crisis, the EU economy has deteriorated and the euro has weakened.

The euro area economy will see retarded growth or even nil growth and a clear decline in demand in 2009, which will have a great impact on our exports, according to some institution's estimates.

While production costs in domestic markets may increase further, this will worsen the already existing difficulties encountered by our companies.

Given such a situation, CCCT will, with its companies, seek survival and growth, and offer better services to promote industrial upgrading, helping companies weather this difficult period.

At the same time, we will live up to the expectations of the government in completing all kinds of tasks, properly managing the Canton Fair in particular.

Heavier responsibilities are awaiting us and there is a long road ahead. We have scored some achievements in the past 20 years, but still have a lot to do in the future.

For the next 20 years, CCCT is ready to work with all textile enterprises and the government, in a bid to make China a strong country in terms of textile and clothing production and exports - and a big country of brand names!

The author is chairman of CCCT

(China Daily 11/03/2008 page10)