Sun Ruizhe: Deepening The Cooperation Between Industry And Finance To Enhance The Competitiveness Of Textile Industry

"At present, the global epidemic situation has not yet reached its peak, the recovery rate of domestic consumption is not as expected, the shortage of orders of enterprises is still serious, many small and medium-sized enterprises are facing survival crisis, and the capital risk of the whole industrial chain is increasing." Sun Ruizhe, President of China Textile Industry Federation, pointed out at the 2020 annual meeting of directors secretary alliance of Listed Companies in China's textile and garment industry that the industry is in urgent need of in-depth integration of industry and finance to effectively alleviate the pressure of capital and resist the impact of the epidemic.

At present, the environment of textile industry is undergoing profound adjustment. In terms of production pattern, with the collective rise of emerging markets and developing countries, the global industrial division of labor and the pattern of interests with global value chain cooperation as the core have changed, and unilateralism and trade protectionism continue to rise. With the help of capital, the industry needs to accelerate the promotion of total factor productivity and product added value, so as to establish global comparative advantage with higher quality and efficiency. At the same time, the industry should vigorously develop the open economy, better realize the global allocation of factor resources and the global layout of the supply chain, and ensure the safety and stability of the industrial chain supply chain.

From the perspective of market structure, the world economy is still in the period of deep adjustment after the international financial crisis, and the market demand continues to decline. The global spread of the epidemic has made the situation worse. The international market will be greatly affected by the shrinking of domestic and international markets.

In terms of factor pattern, scientific and technological innovation has gradually become the core variable to reshape the industrial pattern. The industry should speed up to adapt to the adjustment of industrial pattern brought by technological innovation, and strive to gain competitive advantage in the rapid change.

At the same time, the ecology of coordinated development of industry and finance is speeding up the formation. China's textile industry has the largest and most complete industrial system in the world, and its value chain itself has a strong financial attribute. Under the background of the current supply chain localization and diversification, it is more and more important to speed up the global industrial chain layout of the industry. To achieve cross-border resource allocation and international production capacity cooperation, the power of capital is urgently needed.

In sun Ruizhe's opinion, the industry finance cooperation has the following five aspects of significance in promoting the high-quality development of the textile industry.

To strengthen industrial chain cooperation. In order to solve the problem of "blocking the financial crisis", enterprises should try to solve the problem of "blocking the financial crisis" and "making use of various financial resources to ensure the integrity of the industry.

Promote the digital transformation of the industry through industry finance cooperation. The industry needs to speed up the construction of new digital infrastructure, cultivate and expand the new driving force of digital economic development, and effectively link all forces with financial instruments to support the construction of new-type infrastructure. In addition, industrial enterprises need to balance the risk and return of innovation with the help of capital, steadily promote the application and popularization of information and intelligent technology in production, research and development, operation and other links, and improve the level of lean, flexible and service-oriented industry supply.

The industry and finance cooperation will boost the basic innovation of the industry. China's textile industry urgently needs to improve its basic innovation capability. However, the preliminary research and development time of basic innovation is long, the investment cost is high, and there is great uncertainty. Therefore, it is necessary to establish and improve the long-term financing mechanism of enterprises, guide the long-term and stable investment of funds to the basic, strategic and leading fields of the industry, and help enterprises to accelerate the substantive breakthrough of core technology. At the same time, the research and development of key generic technologies and leading-edge technologies involves the coordination of multiple resources and the coordination of multiple lines. Enterprises should be good at using the strength of financial capital to coordinate the resources of all parties to accelerate the gathering of innovation resources such as technology and talents.

Industrial and financial cooperation should be used to cultivate the main body of the industry. With China's textile industry entering the critical period of building a powerful country, industrial enterprises should strengthen the ability of capital operation, through listing financing, joint investment, cross shareholding, merger and reorganization, etc., to realize the gathering of resource elements in a faster speed, in a larger scope and on a larger scale, so as to continuously enhance the competitiveness of enterprises.

To guide the sustainable development of the industry through industry finance cooperation. Industry finance cooperation, especially listing financing, requires real, accurate, complete and timely information disclosure, which helps enterprises to improve the compliance and standardization of Finance and operation. More and more investors introduce ESG (environmental, social and corporate governance) factors into investment decisions, which will bring new development opportunities for green transformation of enterprises. For example, with the help of green financial tools, enterprises can better and faster realize the adjustment of production capacity structure, eliminate backward production capacity and build a green supply chain.