Ineffective Rectification of Formalism: Statistical Fraud and Blind Investment Reveal Deep-Seated Grassroots Governance Issues

The recent central-level notification of three typical formalism cases is not merely 'political news' unrelated to the textile industry. Statistical fraud, blind investment, and illegal fees reflect a chain reaction of data distortion and decision-making misalignment at the grassroots level. When statistical data is 'packaged' and project decisions are divorced from reality, the ripple effects eventually reach every real industry, including textiles.

Statistical Fraud: How 'Filtered' Industry Data Distorts Market Signals

The notification points out that some counties and districts in Zhangzhou and Nanping cities, Fujian Province, interfered with statistical work through methods such as instructing the reporting of numbers, filling in reports on behalf of enterprises, and packaging fake projects. More seriously, after the central deployment of rectification, the falsification rate of total output value of industrial enterprises above designated size in Changtai District, Zhangzhou City, from January to May 2026, still reached 28.28%. This means nearly 30% of the output value data was artificially 'retouched.'

For the textile industry, the total output value of enterprises above designated size is one of the core indicators for judging capacity utilization, inventory cycles, and industry prosperity. If the output value data of a textile cluster is systematically distorted, downstream buyers, upstream raw material suppliers, and even financial institutions may make wrong judgments about supply and demand. For example, a dyeing and printing cluster falsely reported as having 'output growth' may mask actual order shrinkage and idle capacity, leading raw material suppliers to blindly stockpile, eventually resulting in inventory overhang.

Blind Investment: Lessons from State-Owned Enterprises' 'Digital Innovation' for Textile Projects

The case of the China Journal of Traditional Chinese Medicine Press Co., Ltd. is a stark warning. Without adequate feasibility studies and collective decision-making, the company invested 14.632 million yuan in a new 'smart media' system when existing systems were largely sufficient. The system has been discontinued due to impracticality and security vulnerabilities. Another health variety show project cost 8.89 million yuan but generated only 8,600 yuan in revenue. Total cumulative economic losses exceeded 74 million yuan.

This 'innovation for innovation's sake' decision-making model is not uncommon in the textile industry's smart transformation and digitalization efforts. Some state-owned or large private textile companies, lacking in-depth research into actual production processes and supply chain needs, blindly implement MES systems, smart warehousing, or industrial internet platforms, only to see them become 'ornaments' disconnected from the workshop floor. The difference is that private companies lose their own funds, while state-owned enterprises lose state assets—but the industry lesson is universal: technology investment must serve real production pain points, not political achievements or concepts.

Illegal Fees: How Social Organizations' 'Add-on Charges' Burden Enterprises

The China Enterprise Confederation illegally co-organized forums with local governments and collected cooperation fees, brand promotion fees, etc., totaling 13.48 million yuan from 2024 to 2025. Similar phenomena exist in textile industry associations and chambers of commerce. Some industry forums, exhibitions, and award events have gradually evolved from 'serving members' into 'revenue tools,' with enterprises often required to pay high sponsorship fees, exhibition fees, or 'brand promotion fees' to participate.

For small and medium-sized textile enterprises, these additional costs directly erode already thin profit margins. More worrisome is that when fee collection becomes the main purpose of an event, the quality of forum content and the efficiency of business matching inevitably decline. Enterprises spend time and money but gain no substantial orders or technical connections, exacerbating 'involution.'

Practical Recommendations

For Textile Enterprises - Before participating in industry forums or exhibitions, verify the organizer's qualifications and the quality of past events to avoid paying for 'ineffective networking.' - For smart and digital transformation projects, adhere to the principle of 'diagnose first, then invest.' Hire a third-party institution to conduct a factory-specific needs assessment before deciding on technical solutions. - When analyzing industry data (e.g., customs export data, regional output value data), cross-verify with multiple sources (e.g., electricity consumption, port container throughput) to avoid being misled by a single distorted dataset.

For Local Governments and Industrial Parks - Establish a 'reverse verification' mechanism for statistical data, comparing enterprise electricity consumption, social insurance contribution headcount, and tax invoice amounts with reported output values to reduce room for human interference. - For smart investment projects by state-owned textile enterprises or park platforms, introduce a 'post-evaluation' system: one year after project operation, require a report comparing actual output with expected goals, and hold accountable for ineffective investments. - Regulate the fee-collecting behavior of industry associations within jurisdiction, clearly defining service standards and fee caps for forums, award events, etc., to prevent 'add-on charges' from burdening enterprises.