Home / Knowledge / News / Change in industrial development model long & painful
Change in industrial development model long & painful
Mar '09
According to data provided by a Research Institute in the of Ministry of Commerce, China's export dependence in 2008 was about 32.5 percent while overall foreign trade (imports and exports) reliance was about 58.3 percent. These ratios are much higher compared to mature economies in the world. Data show that Japan's dependence on exports was only about 15.6 percent in 2007.

The higher degree of export-oriented industries and sectors, a greater hit and heat, the economy is expected to receive in the ongoing recessionary trends affecting the globe. Guangdong Province, which has a high concentration of export oriented companies, has experienced a sharp drop in recent few months. Foreign trade of this province accounts for 34 percent of China's total overseas trade.

The industrial output value of the secondary industry forms half of its total GDP and the secondary industry reliance is more so on exports, due to which the effects are more obvious on the secondary export sectors like clothing, automobiles and many other sectors, where the finished products are meant for directly the consumer, since consumers, worldwide have tightened their purse strings.

The financial crisis has curbed the excessive consumption trend witnessed in the US in the last few years and according to estimates has declined by nearly 20 percent. So in spite of 80 percent of overall consumption still existent, the loss of 20 percent, which when converted in to value is a huge amount, has brought about the depression in the secondary industries in China.

A study of Deutsche Bank shows that export contribution to China's economic growth will face downward pressure this year. The industry believes that China must seize the opportunity to carry out adjustment and reconstruction of the development model and aver by saying that internal conditions for such adjustment and reconstruction are ripe and the crisis has stressed its necessity and urgency for change.

Chinese experts say that it will be a long and gradual process and since the parameters and features of domestic and export oriented enterprise are dissimilar, it will be a long drawn out process. They add by saying that it took three decades to complete the development and reach this stage, it will take at least half the time to partially disassociate from the process.

Fibre2fashion News Desk - China

Must ReadView All

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Amrit Sethia

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Wendell Rodricks
Wendell Rodricks

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

January 2017

January 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search