Home / Knowledge / News / Textiles / China turns focus on supply-side reforms
China turns focus on supply-side reforms
03
Feb '16
After three decades of focus on demand-side, the Chinese government has in recent months turned its focus on supply-side reforms in its bid to sustain growth momentum seen over the last few years, according to Chinese media reports.

The rapid growth witnessed by the Chinese economy during the last 30 years had capital investment, exports and consumption as its focus areas, which are all generally considered demand-side parameters. For example, in 2008, following the sub-prime crisis in the US, China announced a 4 trillion yuan stimulus package to increase investment in infrastructure projects, and thereby create jobs and stimulate demand for materials used in construction. The rationale behind such a package also included a thought that wages paid to workers in newly created jobs would be spent on essentials and business would flourish.

In the process, however, issues such as income distribution, rising home prices, and overcapacity were not paid attention.

By focusing on supply-side, which means stimulating economic growth through reducing barriers to production especially through tax cuts, wealth owners will be enticed to invest in things that increase supply. These may be in the form of launching new businesses or innovative goods and services. This will generate sustainable, quality growth, according to some analysts.

Currently, China's growth rate has fallen below seven per cent and the economy is no longer marching ahead on the demand-side parameters of investment, exports and consumption. Even changes in banking regulations and interest rates have not worked in favour of increasing investment or consumption.

In tune with President Xi Jinping's view that China should work more on the supply side “while moderately expanding overall demand”, the Central Economic Work Conference held in December 2015 explained that supply-side structural reform aims at cutting capacity, increasing productivity, nurturing new industries and improving the mobility of people.

The supply-side reforms implemented by China so far include abandoning the one-child policy and steps taken to cut housing inventories, reduce business costs, streamline bureaucracy, tackle debt overhang, and eliminate superfluous industrial capacity. These steps are expected to lead to lower prices and consequently boost consumption. (RKS)

Fibre2Fashion News Desk – China


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

JD.com to invest $3.1 bn to revive industry in NE China

Apparel/Garments | On 22nd Jan 2018

JD.com to invest $3.1 bn to revive industry in NE China

To back the government’s campaign to revitalize the traditional...

SIMA makes pre-budget recommendations to Indian govt

Textiles | On 22nd Jan 2018

SIMA makes pre-budget recommendations to Indian govt

Exemption of 5 per cent goods and services tax (GST) on raw cotton,...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

C Dhandayuthapani

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

Nitesh Mittal

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

Lynda Kelly
Suominen Corporation

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

Mark Paterson
Technical Absorbents Ltd

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

Eric Scholler
Groz-Beckert

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Pranav Mishra
Huemn

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

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

January 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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
8.2%
Skip
9.3%

Total Votes: 97


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