Home / Knowledge / News / Apparel/Garments / China struggling to check apparel business outflow
China struggling to check apparel business outflow
22
May '12
Rising production costs and stringent environmental compliance norms is impacting the competitiveness of Chinese textile and apparel producers, who are losing export orders to their counterparts in other emerging countries, Wang Shouwen, Director of the Department of Foreign Trade at the Ministry of Commerce, said.

The country's textile and apparel exports to traditional markets like EU, US and Japan grew rapidly prior to 2010. However, the industry witnessed a sluggish growth in exports during initial four months of the current year, as it lost around 20 percent of its orders to emerging countries like India and Vietnam.

While China's textile and apparel exports to Japan increased by just seven percent during the period, Japan's imports from other emerging countries soared by over 40 percent.

These factors have persuaded the Chinese Government to consider introducing supportive measures like tax rebates and low transportation charges for textile and clothing firms.

Foreign apparel buyers now prefer procuring cloth or lining from China, but get the apparel produced in Vietnam, which offers labour cost advantage of at least five percent, and also because, exports from Vietnam to the US are duty-free.

Moreover, the 'China plus one' strategy embraced by several overseas buyers is also taking away orders from Chinese exporters. Until a few years ago, China used to be a key procurement source for overseas buyers, but now most of the buyers have identified at least one alternative source in emerging countries to offset rising costs in China.

Moved by the trying export situation, the Ministry of Commerce urged the owners of firms that produce goods meant for exports to shift to the Central and Western regions and upgrade their industries in the coastal cities by raising investment in research and development on side of value addition, Mr. Shouwen said.

He said high transportation and logistics costs prevent the coastal exporters from shifting their production bases to Central and Western regions, which contributed 9.9 percent of China's trade in 2010.

Mr. Shouwen suggested that export orders can be retained if the garment firms can manage to combine the benefit of well-developed industrial chains in the east and low land and labour costs in the Central and Western regions of the country.

Fibre2fashion News Desk - China


Must ReadView All

Courtesy: ABARES

Textiles | On 13th Dec 2017

Australian cotton production to grow 4% in 2017-18: ABARES

Cotton production in Australia is forecast to rise by 4 per cent to...

Global economy now growing by about 3%: UN

Textiles | On 13th Dec 2017

Global economy now growing by about 3%: UN

There is an upturn in the global economy, and it is now growing by...

Clothing prices rise 3% in November in UK market

Apparel/Garments | On 13th Dec 2017

Clothing prices rise 3% in November in UK market

As post-Brexit referendum currency adjustment continues, prices of...

Interviews View All

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search