Recently, jiangsu HuaFang group in henan XiuWuXian investment 2 billion yuan, the construction of 500000 pieces of cotton spinning projects; Corps of xinjiang cotton scale 2015 by 6 million pounds...... Enterprise large investments cotton project seems to be understandable, but make the author don't understand is, in our country cotton production capacity of pieces of scale have leap, enterprise still keen on cotton spinning spindle spinning investment, are they not think about the future of the market risk?

Cotton production capacity exactly this shouldn't limit? DuoNian come, this has always been a controversial topic. In 2000, the state council on forwarding the state economic and trade commission and the department "strict control on new cotton production capacity" notice, for the consolidation YaDing results, prevent cotton textile industry happen again, and promote the cotton industry repeated construction the healthy development has a positive meaning. Although in 2004 the national development and reform commission canceled a spinning cotton spinning the "准购证" management of import new cotton, spinning air suction, jet spinning machine, which involve the cotton production capacity of the equipment and no longer. But, cotton spinning capacity surplus is always cotton industry heart.

In August, 2006, Chinese cotton textile industry association of three three times to industry council issued in suzhou, calling for the enterprise self-discipline fully understand the risks of investment rapid growth. Industry points out that, for a long period, China's cotton textile there is such a phenomenon: one side is the small profit, many cotton industry enterprise tighten belt difficult to make a living; One side is cotton industry of the fixed asset investment growth is too fast, production capacity of rising inflation. The rapid expansion of production capacity in intense market competition, some enterprises in order to survive only participate in price wars.

Our country cotton industry by international market influence is bigger, slightly happens, those who repair ability is poor enterprise will be forced out. In addition to its own competition ability weak outside, the important reason why cotton industry production capability is greatly saturated, beyond the market demand. Excess supply situation spread down will naturally cause "under the nest, Ann finishing have eggs" situation.

The author thinks, at present the higher labor costs, the southern part of the region, in addition to the shortage of electric power MianJia fluctuate frequently, cotton import quota system change and international market variables increase and other factors, and investment project is not wise cotton spinning shots.

Before a few years, some place to market conditions are not sufficient demonstration, blind investment development MianFangYe, cause some project start is insufficient, idle equipment or is discarded, to cause major economic loss. This kind of warning to become the teacher of the past you.

Reprinted ZhuanGao this net please indicate the source "Chinese textile nets"

Edit: lara