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Chinese textile sector dogged by challenges
Apr '10
China's textile and garment exports amounted to US $28.242 billion from January to February, up 28.98 percent, year on year. However, this achievement has come on back of challenges, particularly, a serious man-power shortage, mainly, in coastal areas.

Chen Shu Jin, Vice-President of China Textile Industry Association, said recently that, average profits of the industry are only four percent and the whole export industry faces prospects of large-scale bankruptcy, if the Yuan appreciates.

At the same time, major overseas markets of textile and garment exports continue to face high unemployment rates, debt crisis, deflation and other issues, due to which, market demand has not significantly improved, to attain levels reached in early 2008.

The trend of trade protectionism adopted by major developed and developing economies like the US, EU and Argentina is also raising concerns within the textile and clothing export sector as, if not controlled, could snowball in to a big crisis.

Cost of operations are also shooting up, as since to attract workers to work in the textile and apparel sector, companies have raised wages by nearly 30 percent in the last few months and also reduced education qualifications necessary for the job.

Fibre2fashion News Desk

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