2007 was year of great success for Chinese textile machinerymarket. In this year machinery manufacturer experienced orders pouring and themarket witnessed attention of world focusing on Chinese machinery. Many leadingmachinery manufacturers chose China for expanding their production base andestablished their manufacturing Unit in China. Oerlikon is one of thosecompanies who selected china for their Asian manufacturing hub who believed China is one of the highest promising markets in Asia considering the fact that
Chinaimported textile machinery worth 4 billion USD in the year 2007 as textileindustry of China went for modernization. Main export destinations were Japan and Europe. Main import market for textile machineries were provinces like
Customs Statistics revealed that in the first half of thisyear, total imports of textile machinery together with other machineriesreached US $2.38 billion, a growth of 4.7 percent over the same period lastyear. Of this, June imports marked $410 million, an increase of 11.1 percent.
Textile machinery imports in general trade fetched $1.4billion, an increase of 3.6 percent a drop of 54.2 percentage points in growthrate, accounting for 58.8 percent of the total imports made by China in the first six months of this year. Moreover, equipment imports under investment byforeign-invested enterprises scored $680 million, down 1.4 percent andaccounting for 28.6 percent of the total.
In the period under review, textile machinery imports byforeign invested enterprises amounted to $1.07 billion, an increase of 3.5percent over the corresponding period last year and commanding 45 percent of China's total textile machinery imports. On the contrary, imports made by the privatesector fell by 0.8 percent to $620 million while those made by state-ownedenterprises plunged by 0.1 percent to $490 million.
Individually, textile machinery imports of Zhejiang stood at$550 million representing an increase of 8.5 percent, while those of Jiangsu and Guangdong stood at $510 million and $420 million marking a decline of 17.3and 15.3 percent respectively. Together, the three provinces accounted for 62.2percent of the total textile machinery imports.
Imports from EU came up to $1.18 billion, an increase of12.2 percent and accounting for 49.8 percent of the country's total textilemachinery imports. Similarly, imports from Japan stood at $820 million, up by13.4 percent and accounting for 34.4 percent.
Experts believe that decline in the growth rate of textilemachinery imports in the first half of this year is largely due to stringentinvestments triggered by weak industry economics which has in turn reduced thedemand for machinery.
Statistics from the China Textile Industry Association, forthe period January to May this year shows that total investment in fixed assets(more than 5 million Yuan) in textile industry was registered at 91.7 billion Yuan,an increase of 16.8 percent, down 13.1 percentage points in terms of growthrate.
In fact, it is worth noting that domestic textile machinery still lacks an expertise with regard to digital control levels and reliability of key parts and components. Therefore, the country has to rely on imports for meeting its industrial demand for high-end equipments.
Experts have therefore suggested that while entering an exchange, the domestic textile enterprises must enhance technical cooperation with foreign companies for absorbing key technologies of high end textile equipments.
Besides, it was also unanimously agreed by the leading industry players that in order to promote the overall technical level of domestic textile machinery and equipment, the state should provide textile machinery manufacturing enterprises with independent research and development capabilities to master R&D forefront of international textile machinery.
This can be effectively done through R&D or by an access to international technology alliance and various other means.
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