How To Solve The "Overcapacity" In The Textile Industry

< p > from the second half of 2012 to now, machinery, electronics, chemical industry and other industries are recovering difficultly, while < a href= "//www.sjfzxm.com/" target= "_blank" > textile < /a > is still lingering in the low valley. Why did the textile industry pick up momentum lags behind? Some experts believe that the surplus of backward production capacity has dragged the textile industry up again. In fact, overcapacity is not a bad thing in itself. Moderate excess can encourage enterprises to compete fully. But if an industry's capacity exceeds 30% of market demand, it is worth the industry's vigilance. < /p >
< p > under the market economy, overcapacity is inevitable. In the market, price is a signal. "Invisible hand" calls on all opportunistic enterprises to compete and supply, from oversupply to oversupply, resulting in overcapacity. Under the excess capacity, enterprises will be eliminated under pressure, or they will be reborn in service and innovation. But a lot of times, the government departments in the locality of the enterprises will try to save the backward production capacity. < /p >
< p > in China, the phenomenon of overcapacity is not the product of the market economy, but the accompanying product of the government driven investment mode. Overcapacity in many industries is due to the government's excessive involvement in micro economic activities from the very beginning. For example, a large group of textile enterprises in China took over a large number of bankrupt enterprises under the guidance of the government in the latter part of the last century. These enterprises did not have modern management mode and lack competitiveness, and finally had to close their doors. < /p >
< p > so encouraging a href= "//www.sjfzxm.com/news/index_c.asp" > textile enterprises > /a > beyond their capacity expansion behavior not only distorts the role of the market economy, but also artificially increases the risk cost of enterprises and disrupts the normal market order. On the one hand, the local government gives money to the land to give the policy, all kinds of subsidies to make up for the expansion of the enterprise bigger and stronger, on the other hand, the government's excessive intervention, so that investors and creditors of the enterprise are too much trust in the government's bottom line. < /p >
< p > in a place in Shandong, the local government, for its consideration of Taxation and employment, gave support to a local cotton textile enterprise in terms of Finance and land and vigorously expanded the production capacity of cotton spinning. Therefore, the overcapacity gradually accumulated. Today, the company closes 40% of its production capacity, which is a consequence of the local government's manipulation of the market. < /p >
< p > to solve the bell, we must solve the problem of overcapacity in the textile industry. First of all, the competent departments should control their own hands, do not hesitate to invest in driving, otherwise the textile industry's capacity surplus in such industries as cotton spinning, chemical fiber and machinery will only continue to be surplus. At the same time, investors should not feel so good about themselves that they will lead the development of the industry at any time. The result is that they rush to the market and rush off. The soybean protein fiber is the best example. < /p >
< p > textile industry is not led, nor is it planned. The ups and downs of soybean protein fiber illustrate the essence of the problem. In fact, both the industry management department and the textile industry organization are shouldering more important work. They are committed to improving the market environment and guiding the development of the industry by improving the planning layout and standard setting level, so as to make the environmental cost explicit. Only under the endogenous drive of < a href= "//www.sjfzxm.com/news/index_s.asp" > textile market < /a >, annexation and reorganization, or natural elimination, can the problem of overcapacity in the textile industry be well digested. < /p >