The Textile Industry Is Lagging Behind And Lagging Behind.

< p > from the second half of 2012 to now, machinery, electronics, chemical industry and other industries are recovering difficultly, while < a target= "_blank" href= "//www.sjfzxm.com/" > 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.

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< p > in fact, overcapacity is not a bad thing in itself. Moderate surplus can encourage enterprises to compete fully. But if an industry's capacity exceeds 30% of market demand, it is worth the industry's vigilance.

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< 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.

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Under P excess capacity, enterprises will be eliminated under pressure or 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.

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< 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.

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Like P, a large textile group in China, at the end of the last century, under the guidance of the government, a large number of enterprises on the verge of bankruptcy were acquired. These enterprises had no modern management mode and lack competitiveness, and finally had to close their doors.

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"P >, which encourages enterprises to expand beyond their capabilities, not only distorts the role of the market economy, but also artificially increases the risk cost of enterprises and disrupts the normal market order.

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< p > 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 believe too much about the government's bottom line.

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