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In the process of strategic transformation, Xi'an Textile City, the largest textile industrial base in the northwest region, insists that bankruptcy does not break productivity. Through institutional innovation, it has transformed the historical burden into an advantageous development resource and successfully solved the traditional industrial transformation. Where does money come from? The problem of where to go is a new way to adjust the structure and transfer the old industrial base.
Sunset industry welcomes new students
Xi'an Textile City is the largest textile industrial base in the northwest region invested and built by the state during the “1st Five-year Plan†period. Since the late 1990s, due to the adjustment of the country’s industrial structure, intensified market competition, and backward production processes, enterprises in the textile city area have closed down and a large number of workers have been laid off. Many family lives are extremely difficult, and petitions and roadblocking events occur from time to time. The Textile City has also been transformed from Xi'an “Little Shanghai†in glory into one of the most impoverished areas in the city.
In order to achieve the transformation and development of Textile City, in 2008 the Xi'an Municipal Committee and the municipal government decided to start a new round of industrial reorganization while completing the bankruptcy restructuring of the main state-owned enterprises in the region and established Xi'an Textile Group Co. "Xi'an Modern Textile Industrial Park" has launched a large-scale textile industry relocation, transformation and upgrading.
“The relocation of our textile enterprises is an all-round upgrade and transformation.†Yang Liu, deputy general manager of Xi'an Textile Group, said: “After the relocation of the old company's factory, we will invest 2 billion yuan to build a new plant area of ​​800 acres. It will form a large-scale textile production base of 300,000 spindles.The new base will be repositioned in accordance with the requirements of new enterprises, new technologies, new equipment, and new products, and will achieve first-class levels in the domestic industry. The textile industry here will regain new life. â€
For the “high-profile revitalization†of the textile industry’s old industry, Ge Chaoxiang, a 77-year-old retired employee of the Northwest National Cotton Factory, deeply felt this year. He said: “Textile City was once the richest and most popular place in Xi’an. In the past ten years or more in recent years, it has become the most difficult area for enterprises and workers. Even tap water has to be supplied in limited time, and young people are not easy to find. Many people have lost confidence in their lives. Now we have seen Xi'an take measures to continue to develop the textile industry at a high level, so that this old employee has seen hope again."
Historical burden becomes a development resource
In the textile city area, many cadres and workers believe that the party committees and governments at all levels are determined to let the textile industry re-invigorate the economic development of the Xi’an City East region, which is both a historical heritage and a choice to seize the development opportunities based on its own advantages.
Yanqiao District Party Committee ** Nie Zhongqiu believes that bankruptcy is not the same as industry bankruptcy, and the traditional industry is not equal to sunset industry. He said: "A lot of people, including some experts, think that the textile industry is a sunset industry and there is no future. But we must consider that the transformation of textile enterprises must have people's sentiments and a sense of urgency, and we must base ourselves on the objective reality that a large number of people must be employed. The transformation of the city cannot be separated from the textile industry. While we have allowed some textile companies to bankrupt and restructure, we have not abandoned the productivity of the textile industry."
Despite the controversy, everyone has formed a consensus on revitalizing the textile industry. Liu Guorong, director of Xi'an Modern Textile Industry Park Management Committee, analyzed that the “rebirth†of the textile city faces multiple opportunities: With the gradual shift of the textile industry in the eastern part of the country to the west, many companies are looking for industrial acceptance and the originality of the textile city. With its human resources and technological advantages, the textile industry here has a new round of development conditions.
How do traditional industries achieve transformation? This is a common problem facing the revitalization of China's old industrial base.