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China's textile sector upgradation will accelerate in 2014
Feb '14
Since 2011, the share of China’s labour-intensive products like textiles and apparel in the US and EU markets has declined, which, in part has occurred due to several factors like the appreciation of RMB, rising labour costs, etc.
In spite of such problems, large-scale textile industry transfer from China to other countries has not happened. Actually, many of the textile manufacturing companies choose to invest in China because of the country’s political stability and social environment, in addition to enormous business opportunities, according to experts.
Some companies that have shifted their production units from eastern China to mid-western part of the country have done so only to get benefit from the relatively low cost of production there.
Given a choice between shifting their manufacturing to mid-western China and other low cost countries, few companies have chosen the latter, which is the result of industrial transformation and upgrading in Chinese textile and apparel sector, experts said.
There have been reports of labour shortage in the Chinese textile industry, but this has also motivated entrepreneurs to move away from being dependent on labour intensive production techniques.
In fact, over the past decade, China’s textile manufacturing industry has seen a slow and gradual climb to the high-end chain.
Data shows that exports of some labour-intensive products from China to the US and EU markets have declined in recent years, but the share of ‘Made in China’ products in overall global exports continues to rise.
The only way for Chinese textile industry to overcome multiple challenges is industrial upgradation, which might take several years. But, given the continued encouragement of innovation and a more friendly business environment, the year 2014 will see further acceleration of upgrading of China’s textile and apparel industry, moving towards production of high-end products.

Fibre2fashion News Desk - India

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