At present, China's industry is in a critical period of accelerating transformation and upgrading. As a traditional pillar industry and an important livelihood industry, the textile industry is facing new development opportunities and challenges. Textile raw materials are the basic production factors of the textile manufacturing industry, and high-quality, stable, and reliable supply has become a necessary guarantee for the healthy development of the industry and enterprises.

I would like to express a few opinions on the current economic situation and the policy orientation of vigorously promoting the transformation and upgrading of the textile industry.

Firstly, carefully grasping the current development trend of China's industrial economy and correctly analyzing and judging the economic situation are important foundations for formulating textile raw material production and operation strategies. In the face of the complex international and domestic economic changes this year, we need to be able to see through the clouds and grasp the laws behind the numbers.

    The current economic situation has three distinct characteristics: first, a stable start. This year is the first year of governance after the formation of the new central government, and it is also an important year to lay the foundation for building a moderately prosperous society in all respects. It is crucial to have a good start. From the main indicators of economic operation, the current economic development is in line with the expected direction of macroeconomic regulation. In the first quarter, GDP grew by 7.7% year-on-year, higher than the 7% growth target of the 12th Five Year Plan and the 7.5% development expected target of this year. The consumer price index of residents, employment of urban residents, and international balance of payments data are still within a reasonable range. From January to April, the added value of industries above designated size nationwide increased by 9.4% year-on-year. Although the growth rate has slowed down compared to the same period last year, overall it still meets expectations. Secondly, there are concerns about stability. With the continuous expansion of China's economic aggregate, it has become the world's second largest economy, and contradictions in development are also accumulating. Various problems and difficulties are also constantly emerging. From an international perspective, the world economy continues to struggle to recover, with clearly insufficient growth momentum and still many risks and variables. Some major economically developed countries are stimulating economic growth through loose monetary policies, which are not only gathering financial risks but may also cause a shock to the global economy. There are also issues that require high attention in the development of the domestic economy, mainly because new economic growth drivers have not yet formed, the foundation for sustainable development is not yet solid, the growth rate of fiscal revenue is slowing down, and the contradiction of overcapacity in most manufacturing industries is highlighted. Environmental pollution and other issues have attracted widespread attention from society, and eliminating these hidden concerns in development requires the industry and even the textile industry to focus more on transformation and upgrading in development. The third is to make progress while maintaining stability. Regarding the macroeconomic trend under the current unfavorable situation, there has been a lot of discussion from various parties, and there should be a calm and clear grasp of this. According to the China Manufacturing Purchasing Managers' Index released on June 1st, the PMI was 50.8%, an increase of 0.2 percentage points from last month, and has been above the 50% boom and bust line for 8 consecutive months. In addition, since the first quarter, industrial electricity consumption across the country and across regions has also rebounded to varying degrees, indicating a consolidation of the trend of slow to stable economic operation. The trend of stable operation has laid a good foundation for stable growth in the next stage. It should be pointed out that some recent statements regarding the difficulty in stopping the current economic downturn and the need to restart the investment of 4 trillion yuan are clearly unfounded. As long as the economic growth rate does not slide out of the normal range, employment and overall social stability are maintained, macroeconomic policies will maintain stability and continuity. Seeking progress while maintaining stability will still be the main trend of macroeconomic regulation this year.

Secondly, we must firmly seize the new opportunities faced by China's industrial development. Currently, China has entered a critical period of accelerating the transformation of its economic development mode, and industrial development is facing an important period of opportunity. Building an upgraded version of the Chinese economy is the historical responsibility undertaken by China's industry.

The main content is to grasp the current situation, focus on the long-term, and fully promote transformation and development. Obviously, accelerating the transformation and upgrading of industry and the transformation of development methods can achieve leapfrog development. Conversely, it may lose opportunities and be further distanced by developed countries. The key to achieving upgrading lies in promoting economic transformation, which requires combining the dividends of reform, the potential of domestic demand, and the vitality of innovation to form a new synergy. Firstly, relying on new urbanization to unleash the potential of domestic demand, we should focus on expanding domestic demand, which is an important foundation for ensuring continuous development in the constantly changing domestic and international economic situation. Expanding domestic demand cannot do without urbanization. Premier Li Keqiang has repeatedly pointed out that urbanization is the greatest potential for expanding domestic demand and an important support for economic structural adjustment. In the process of building a new type of urbanization, industry should be driven by reform and innovation, and continue to play a pillar role. As an important agricultural product processing industry and an industry that attracts a large number of migrant workers for employment, the textile industry has a special advantage in promoting small town construction and county economic development. The next step is to seize the opportunity of the country's vigorous promotion of urbanization construction and achieve its own development. The second is to rely on innovation to drive, enhance development vitality, and break through the constraints of factors. The only way out is to enhance independent innovation capabilities and improve the quality and grade of products. At present, the Chinese economy appears to be transitioning from high-speed growth to medium speed growth, but its essence is a process of shifting from resource input driven to innovation driven. The success or failure of China's economic transformation depends on whether it can embark on an innovation driven development path and form new core competitiveness. In the process of promoting innovation, special attention should be paid to the innovation of business models and management, accelerating the development of strategic emerging industries, promoting deep integration of industrialization and informatization, transforming and upgrading traditional industries, developing high-tech service industries, and the emergence of fast fashion brands in the textile and clothing industry, as well as the vigorous development of e-commerce sales networks, indicating that innovation is constantly adding endless vitality to the traditional field of textiles. Thirdly, relying on reform and opening up to stimulate the driving force of transformation. China's reform has entered a deep water zone of interest pattern adjustment. The current reform is to further deepen the government's own reform, streamline administration and delegate power, create a better environment for economic development, and provide better basic public services for the people's lives. The second is to complete market reform in the field of factors, truly relax access, achieve market allocation of resources, and stimulate the vitality of the private economy. On May 15th of this year, the State Council has cancelled and delegated 117 administrative approval items, and will further increase the efforts to reduce or cancel approval items, returning items that belong to market regulation to the market. The textile industry was the first to enter the market, and in the tide of market competition, enterprises are competing and constantly developing, which also proves that reform and opening up and the development of the socialist market economy are the greatest driving force for promoting the development of the national economy. The fourth is to rely on green development to increase sustainability. Green and low-carbon development is related to the well-being of the people and the future of the people

At present, the Ministry of Industry and Information Technology is promoting the implementation of industry access conditions in the printing and dyeing and adhesive industries, in order to improve the level of enterprise technology and equipment, energy conservation and emission reduction, and promote healthy and sustainable development.

Thirdly, comprehensively promote the cultivation of new competitive advantages in the textile industry and accelerate transformation and upgrading.

At present, the development environment of the textile industry has undergone significant changes. The contradictions and problems that affect the industry's development, such as weak market demand, intensified international competition, and rising domestic factor costs, will persist for a long time, and the task of upgrading will become more urgent. The textile industry should accelerate the transformation of development mode, enhance innovation driving force, build a modern industrial system, cultivate and form new competitive advantages centered on independent innovation, quality brands, green ecology, and international development in accordance with the new requirements of the upgraded version, and achieve the transformation from a major textile country to a strong one.

Firstly, independent innovation enhances the hard power of the industry. We should regard innovation as the primary driving force for industry development. Technical innovation in the textile industry should attach importance to several aspects. Firstly, seize the opportunity to cultivate strategic emerging industries, promote the development and industrialization of common core technologies such as fiber new materials, high-end industrial textiles, and intelligent equipment, grasp the commanding heights of new technology development in the textile field, and cultivate new growth points in the textile industry. At present, special projects such as high-performance fiber materials, biomass fibers, and intelligent equipment are gradually being launched and implemented. The second is to leverage the advantages of characteristic fiber resources and industrial chain supporting facilities, strengthen the development of natural fiber processing technology and high-end products, such as cashmere, cocoon silk, ramie, bamboo fiber, etc., which are the absolute advantages of natural fiber resources in China. However, there is a significant gap between the production process and research and development level and the international advanced level, and the advantages of raw materials have not been converted into product advantages. The third is to promote the deep integration of information technology and the textile industry, use information technology to transform and improve traditional textile industry, significantly improve production efficiency and product quality, and use information technology to improve management level.

    Secondly, quality brands increase the soft power of the industry. Quality brand is an important manifestation of an industry's international discourse power and comprehensive competitiveness, as well as a comprehensive reflection of the industry's soft power. The Ministry of Industry and Information Technology has implemented a special action plan for quality brand improvement for two consecutive years, organized pilot projects for industrial enterprise brand cultivation, guided enterprises to establish a brand cultivation management system, and improved brand cultivation ability and value. The textile industry should focus on the following aspects of work: first, improving the quality assurance system, establishing a trustworthy consumer reputation, improving the standard system, strengthening the construction of quality testing capabilities, improving the quality management system, and strengthening industry self-discipline. The second is to carry out the cultivation of key clothing and home textile independent brands. Last year, the Ministry of Industry and Information Technology, in conjunction with the China Textile Industry Federation, organized a brand evaluation activity on the basis of a survey on the construction of independent brands in clothing and home textiles, and identified 111 clothing and home textile independent brand enterprises as key enterprises for tracking and cultivating. This year, we will carry out training and guidance for key enterprises, organize professional talent training, support the development and design capacity building of enterprises, and coordinate the implementation of common policies supporting brand building. The third is to promote the brand construction of the entire industry chain. We, together with the China Chemical Fiber Association and other units, have launched a fiber trend release, with the main purpose of guiding fiber production enterprises to shift from scale expansion to development and innovation, and promoting the application of new fibers in the industry chain, promoting brand creation at different stages of fiber fabric clothing and products, and creating a good brand ecological environment. The fourth is to strengthen the summary and promotion of management innovation experience. Management innovation is an important part of improving the soft power of the industry, and attention should be paid to the innovation of management methods, enterprise strategies, and business models. The China Textile Industry Federation has carried out two consecutive years of evaluation activities for the Management Innovation Award, and has summarized a number of typical cases of management innovation and promoted them in the industry. This has positive guiding significance for improving industry management level.

    Once again, green ecology lays the foundation for the sustainable development of the industry. Energy conservation, emission reduction, and green development are key targets for industry planning and related assessments, and are also the foundation for the survival and development of enterprises. The green development of the textile industry is to optimize the industrial structure, continue to accelerate the elimination of outdated production capacity in chemical fiber printing, dyeing, cotton spinning and other industries, implement industry access conditions, continue to publish the list of enterprises that meet the admission requirements of the printing and dyeing industry, and promote structural adjustment of enterprises. The second is to promote the development and promotion of advanced clean production technologies, and establish the concept of environmental protection, energy conservation, and circular economy. Organize the implementation of clean production and enterprise energy management center project demonstrations to improve the level of green production technology in the entire industry. The third is to ensure the safety of product consumption, limit the application of toxic and harmful chemicals, strengthen ecological and environmental protection, and develop processes to ensure the ecological safety of products.

Fourthly, international development optimizes resource allocation. The textile industry is the most fully market-oriented and typical industry for international division of labor and cooperation. One of the important factors for the rapid development of China's textile industry is its integration into the global industrial division of labor system. Internationalization is an inevitable choice for enterprise development and growth. We need to promote advantageous enterprises to go global, achieve a comprehensive layout of resource allocation, talent application, product branding, market expansion, and other aspects. We need to shift from low-level participation in international division of labor to high-level international operation, and from workers in world factories to integrators of global resources. One is to support international mergers and acquisitions of enterprises, integrate advantageous resources in the global industrial chain, and enable enterprises to achieve leapfrog development. The second is to encourage enterprises to build production bases in areas with abundant resources and labor abroad, in order to consolidate and enhance their international competitive advantage. The third is to support brand enterprises to go global, fully utilize international design, brand experience, and marketing channels, explore international markets, and enhance the international influence of Chinese brand products.

Finally, I would like to briefly comment on the issue of textile raw materials.

Raw materials are a fundamental issue affecting the development of China's textile industry. Currently, the fiber processing volume in China has reached about 45 million tons, exceeding 50% of the global total fiber processing volume. Although it is already difficult to further rapidly increase the total amount of fiber processing in China, there is still significant room for adjustment of fiber structure. The next step is to focus on transforming from quantity growth to quality improvement, protecting precious raw material resources, promoting sustainable development of the industry by increasing added value, ensuring stable supply of textile raw materials, and mastering the dominant position in the industry's development.

Firstly, we need to make good use of cotton resources. Cotton has always been an important factor affecting the development of the industry, involving multiple links such as agriculture, circulation, and textile. It is the only field in the textile industry that implements national regulation and management. The current policy of temporary cotton storage and total import control has ensured the interests of cotton farmers, stabilized domestic cotton prices, and enabled cotton textile enterprises to lock in raw material costs and reduce operational risks. However, the large price difference between domestic and international cotton has also had a significant impact on the competitiveness of textile enterprises, especially for small and medium-sized enterprises mainly engaged in pure cotton spinning. The China Textile Industry Federation and enterprises have repeatedly reflected on the cotton policy, and we have been working through various forms and channels. In the next stage, we will actively coordinate and promote, cooperate with relevant departments to improve and improve cotton policies. This year, the price difference between domestic and international cotton has narrowed, but international cotton prices do not yet have the conditions to continue to rise. Cotton textile enterprises need to overcome difficulties, attach importance to and make good use of domestic and foreign cotton resources, actively develop new products, and increase added value.

Secondly, we need to do a good job in the development and application of chemical fibers. After years of development, China's chemical fiber industry has made significant progress, with conventional products meeting demand and high-tech fibers rapidly developing. The next step is to continue to accelerate technological and product innovation, and provide more products that adapt to personalized production.

This year is an important year for the development of the 12th Five Year Plan and a crucial year for the transformation and upgrading of the textile industry under the combined action of opportunities and challenges. Jiangsu Province, as the largest textile province in China with a main business revenue exceeding 1.2 trillion yuan, has a prominent position and significant responsibility in promoting the transformation and upgrading of China's textile industry. At present, the production of cotton, wool, silk, chemical fibers, and clothing in Jiangsu Province ranks among the top three in the country. In terms of technology and management innovation, integration of industrialization and industrialization, brand construction, and regional coordinated development, it has always been at the forefront of the country, forming a group of enterprises and enterprise groups with strong competitiveness and influence. In the next step, the textile industry in Jiangsu should shoulder the glorious mission of exploring the path forward for transformation and development, Make greater contributions to the sustained and healthy development of China's textile industry