Home / Knowledge / News / Apparel/Garments / China haven for Taiwanese investments in clothing sector
China haven for Taiwanese investments in clothing sector
29
Dec '08
Since the thawing of relations between China and Taiwan in the last few years, Taiwanese investments in Mainland China have been growing from strength to strength. China has put forth a slew of incentives and there are many other attractive factors to attract investments from companies in Taiwan. Among many suitable areas for the investments, the incentives and factors in the clothing sector in China have a lot to offer.

One of the biggest factors is the low wages that were prevalent in China in the garment sector. Since the industry is labour intensive, the benefits are out weighed by other factors. Labour is also available abundantly. The cultures and backgrounds are similar so adjusting can be done very fast. The land rents prevailing in some of the provinces are also on the lower side.

Other incentives and attractive factors include preferential tax and investment incentives for Taiwanese companies and the last but not the least is that more preferential tariffs were available to Chinese garment industry in the post quota restrictive period from the US, the EU and many other countries, than those available to other countries. All these factors made China an attractive location for investments in the clothing sector.

During the period 1991-2007, from amongst the total amount of overseas investment from Taiwanese clothing industry, 60 percent of that investment flowed into Chinese mainland. But specific factors occasionally affected investment proportion. For instance the North American Free Trade Area Act in 1994 led to a fall in investment ratio from 92 percent in 1993 to 51 percent in 1994 in China.

When the Taiwanese government declared the policy of no haste with more patience in 1996, investment ratio in the mainland got reduced to only 8 percent and again from 1998 to 2000, due to continual impact of Asian financial crisis, investment ration proportion in the mainland dropped to 35 percent, 12 percent and 39 percent respectively from the Taiwanese clothing companies.

Except for the above mentioned periods, for most of the other years, investment ratio in relation to overall global investment ration was maintained above 70 percent, especially after the global economy started its upward march 2001 onwards, after which the proportion of investments from Taiwan started growing and has been able to touch as much as 99 percent of total overseas investment by the Taiwan clothing industry

However, since the beginning of 2007, China began to increase the minimum wage, to carry out the new "Implementation Regulations of Enterprise Income Tax Law", and "Labor Contract Law", due to which investments from Taiwan clothing industry have been affected which has meant a gain for countries like Vietnam and Bangladesh, with Vietnam in particular having very low wage costs.

Fibre2fashion News Desk - China


Must ReadView All

UNIDO, eWTP discuss strengthening ties to back e-commmerce

Textiles | On 25th Apr 2018

UNIDO, eWTP discuss strengthening ties to back e-commmerce

United Nations Industrial Development Organisation director general...

Courtesy: HueTrap

Apparel/Garments | On 25th Apr 2018

Making sustainability affordable is a big challenge

In a lot of instances, being sustainable comes with an additional...

Courtesy: Formosa Petrochemical Corporation

Textiles | On 25th Apr 2018

Formosa to set up petrochemical plant in Louisiana

Formosa Petrochemical Corporation has selected St. James Parish in...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Urmil Arya

Sushila International, a well established textile organisation established ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Divvya and Nidhhi Gambhir
Walnut

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

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

Leave your Comments


April 2018

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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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