Home / Knowledge / News / Apparel/Garments / Clothing factories in suspended state
Clothing factories in suspended state
May '11
Latest market reports indicate that, medium and small garment enterprises in Zhejiang, Guangdong and Jiangsu provinces are in semi-suspension state or even suspended state.

Struggling enterprises are not only in the clothing production industry, but some footwear enterprises also have fallen into such plight.

Concerned by the situation, the Industry and Information Ministry issued a circular, requiring various authorities in all provinces and cities to carry out a survey on financial condition of various SMEs.

A recent survey carried out by the National Business Federation has also raised great concern. The survey which took two months to complete carried out a systematic survey in 16 provinces, including Guangdong, Zhejiang and Jiangsu province.

The findings show that business conditions of small and medium enterprises, especially small and micro enterprises are more difficult than they were in the global financial crisis of 2008.

The survey reveals rise in raw material prices, wage hikes, labor shortage, RMB appreciation, fall in external demand, increase in competition from surrounding nations, power shortages, among many reasons, for the current situation.

The report states that, it may be very difficult to reverse the situation.

After the 2008 financial crisis, government largesse in form of subsidies and incentives amounting to four trillion Yuan saved SMEs from closure.

A similar four trillion Yuan is needed once again to avoid mass closures of small and medium enterprises, which could have a cascading effect on the garment industry as a whole, opine experts.

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Wendell Rodricks
Wendell Rodricks

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


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