Address at the “Future Path of Textiles – China Xinjiang–Europe High-End Textile Forum”

　　Gao Yong, Secretary of the Party Committee and Secretary-General of the China National Textile and Apparel Council

　　Respected Chairman Zhao, Chairman Ferdinando,

　　Distinguished guests and friends:

　　Good morning, everyone!

　　First of all, on behalf of the China National Textile and Apparel Council, I would like to extend our warmest congratulations on the successful convening of this forum and to express our sincere welcome and heartfelt gratitude to our friends from Europe and China for attending!

　　This forum, themed “The Future Path of Textiles,” ushers in a new dialogue on textile industry cooperation between the Asian continent and the Mediterranean region—a theme that aligns seamlessly with the overarching theme of the Belt and Road Forum for International Cooperation held in Beijing over the past two days: “Strengthening International Cooperation, Jointly Building the Belt and Road, and Achieving Win-Win Development.” At the Forum, President Xi Jinping emphasized that we must build the Belt and Road into a road of peace, prosperity, openness, innovation, and cultural exchange. This vision has also provided the guiding theme for our current forum.

　　Today’s forum will explore the future development potential of Xinjiang’s high-end textile industry, the long-term establishment of a China–Europe textile industry value-chain cooperation framework, and the cultural integration and innovative development of the China–Europe textile sector. On this occasion, I would like to share a few observations.

　　I. The steady and improving trend has laid the foundation for innovative development in the industry.

　　At present, China’s textile industry is undergoing a period of transformation and upgrading, with overall performance maintaining a trend of gradual stabilization amid moderate growth and steady improvement. Based on the current situation, the following key characteristics can be identified:

　　(1) Production, profitability, and investment growth have remained stable. In 2016, main-business revenue reached RMB 7.33023 trillion, up 4.1% year on year; fixed-asset investment totaled RMB 1.283875 trillion, an increase of 7.8% over the previous year. According to the latest data released by the China National Textile and Apparel Council, the pace of growth accelerated in 2017: from January to March, main-business revenue amounted to RMB 1.6766 trillion, up 9.2% year on year; and fixed-asset investment for the same period reached RMB 213.4 billion, up 9.7% year on year.

　　From 2014 to 2016, fixed-asset investment in Xinjiang’s textile and apparel industry totaled RMB 89.39 billion, with an average annual growth rate of 119%. In terms of production and operations, in 2016 textile and apparel enterprises above designated size across the region recorded an added value of RMB 8.04 billion, up 47.1% from the previous year; among them, the large-scale textile industry generated main-business revenue of RMB 37.80 billion, a year-on-year increase of 59.4%. These figures clearly demonstrate that Xinjiang’s development has been markedly faster than the national average for the textile industry.

　　(2) The consumer market and industry profitability have grown steadily. In terms of total retail sales of consumer goods, in 2016 retail sales of apparel, footwear, headwear, and textile products above the designated size increased by 7% year on year, while online retail sales of apparel-related goods rose by 18.1% year on year. From January to April 2017, these figures grew by 7.1% and 15.6%, respectively, year on year. Coupled with the turnaround from negative to positive export growth, the overall market performance in 2017 is expected to be better than last year.

　　(3) During the supply-side structural adjustment, the accelerated restructuring of industrial structure, regional structure, and product mix, coupled with the infusion of new growth drivers, has ushered in a new phase of industry development. In terms of industrial structure adjustment, the share of technical textiles within the textile industry is expected to continue expanding during the 13th Five-Year Plan period; in 2016, this share already reached 26.7%, up 1.7 percentage points year on year, and is projected to account for one-third of the entire textile industry by 2020. On the regional front, domestic efforts are focused on shifting textile production capacity from the five coastal provinces in the southeast to the central and western regions, with Xinjiang playing a pivotal role. Under the central government’s proactive strategy to develop Xinjiang’s textile and apparel industry—aimed at creating one million jobs—Xinjiang has now become a focal point for regional structural adjustment. Internationally, enterprises are proactively deploying production capacity overseas; currently, most of the incremental export volume is being redirected to Southeast Asia, South Asia, and Africa, which is also the primary reason for the slight decline in exports over the past three years. Product mix adjustment is the key to structural upgrading and transformation.

　　II. Xinjiang is ushering in a significant historical opportunity for developing new competitive advantages.

　　At present, driven by the ongoing implementation of the Belt and Road Initiative, the development of the core area of the Silk Road Economic Belt, the successful execution of the 13th Five-Year Plan, the sustained rollout of the “Three-Product” strategy, and the further deepening of supply-side structural reform, Xinjiang is poised to seize unprecedented historical opportunities for development.

　　Leveraging unparalleled advantages in policy, raw materials, energy, location, costs, and the China–Europe International Railway Express, Xinjiang has emerged as a globally prominent, highly promising region with the strongest investment appeal in the textile and apparel industry along the Silk Road Economic Belt. It has played a pivotal role in creating employment for one million people, stimulating economic development, and facilitating the relocation of industries from eastern and central China. By 2020, Xinjiang is expected to have essentially established itself as a major national cotton-spinning industrial base, a key garment and apparel production hub for Northwest China and the core area of the Silk Road Economic Belt, and a western-bound export distribution center.

　　III. Implementing the Belt and Road Initiative is a crucial pathway for Xinjiang to achieve sustainable development.

　　General Secretary Xi Jinping’s Belt and Road Initiative is a shared endeavor in which all countries roll up their sleeves and work together, helping to rebalance economic globalization toward greater inclusiveness and shared benefits, and serving as a crucial practical platform for building a community with a shared future for mankind. As the core area of the Silk Road Economic Belt and an important gateway for China’s opening-up to the West, Xinjiang’s active implementation of the Belt and Road Initiative is not only a glorious yet arduous historical mission, but also a vital pathway for developing distinctive industrial brands and achieving sustainable development.

　　The multifaceted benefits of developing the textile and apparel industry are self-evident in terms of boosting Xinjiang’s economic development, safeguarding social stability, and ensuring long-term peace and prosperity. It is imperative to center our efforts on enhancing the quality and efficiency of development and to take supply-side structural reform as the main thread. How can we accelerate the agglomeration, development, and upgrading of Xinjiang’s textile and apparel industry? I would like to offer a few suggestions in this regard.

　　(1) Pursue the path of green manufacturing and responsible development to build the “Made in Xinjiang” brand. As stated in the recently jointly issued “Guiding Opinions on Promoting the Construction of a Green Belt and Road” by four ministries and commissions, advancing the construction of a green Belt and Road is an intrinsic requirement for sharing the vision of ecological civilization and achieving sustainable development; it is the inevitable choice for aligning with and leading the international trend toward green, low-carbon, and circular development, as well as an effective means of bolstering the momentum for sustained and healthy economic growth; moreover, it facilitates pragmatic cooperation, promotes the development of green investment, green trade, and green financial systems, and fosters a win-win outcome for economic development and environmental protection. Beyond its unique regional and ethnic characteristics, green manufacturing and responsible development should become the new hallmark that sets the “Made in Xinjiang” brand apart.

　　(2) Fostering a harmonious industrial ecosystem. By developing a relatively complete industrial value chain and a well-developed product market, and by encouraging enterprises across the spinning, weaving, dyeing and finishing, and apparel sectors to establish harmonious market relationships within Xinjiang, we can jointly safeguard a healthy and sustainable market environment in the region. This will help Xinjiang build an industry system that is internationally competitive and achieve sustained, healthy industrial development.

　　(3) Leverage the expertise and resources of authoritative professional institutions to conduct in-depth research on market demand under the Belt and Road Initiative and on the economic performance of Xinjiang’s textile and apparel industry.

　　(4) Optimize the division of labor and spatial distribution across industrial chains, promote coordinated development among upstream and downstream sectors as well as related industries, and achieve cross-border integration of industrial chains and enhancement of value chains.

　　(5) Policy incentives and related services continue to be strengthened and intensified. Efforts to attract investment will be further stepped up, the business environment for industrial development will be improved, existing industrial achievements will be consolidated, and favorable conditions will be created for enterprises operating in Xinjiang.

　　(6) Continue to leverage the constructive role of a series of platforms—such as international forums, trade fairs, economic and trade cooperation parks related to the textile and apparel industry, and the China–Eurasia Expo—to enhance mutual understanding, build consensus, deepen cooperation, and unlock new drivers of economic growth.

　　The Belt and Road Initiative is not only focused on the present but also on the long term; it is a protracted process that cannot be accomplished overnight.

　　“Daily effort, no matter how far the journey; persistent action, no matter how many tasks there are.” The rise and soaring development of Xinjiang’s textile and apparel industry is likewise a painstaking and protracted process. In the face of challenges, we must pool collective wisdom and unite collective strength to jointly establish new platforms for cooperation, unlock new drivers of growth, and explore innovative pathways for development. Throughout this process, it is essential to leverage the government’s leading and coordinating role, allow the market to play its decisive role in allocating resources, and encourage active participation from enterprises and all sectors of society, so as to achieve synchronized multi-engine propulsion and ultimately establish a multidimensional promotion framework characterized by government guidance, market-based operations, enterprise leadership, and grassroots impetus.

　　“Those who share common aspirations need not be deterred by mountains or seas.” It is precisely out of this shared conviction and pursuit that textile professionals, creative pioneers, and international friends from Europe have traveled great distances to join us today. We look forward to using this forum as a catalyst to establish an open and efficient platform for international cooperation, thereby forging a closer and more robust network of partnerships. By balancing the interests of all parties and reflecting their respective concerns, we will work together to promote broader, higher-level, and deeper exchanges and integration across the industry. In doing so, we will contribute to the successful implementation of the Belt and Road Initiative, breathe new life and vitality into the ancient Silk Road, and further strengthen ties between the textile industries of China and Europe in new forms, elevating mutually beneficial cooperation to new historic heights.

　　Thank you, everyone!