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Shift of Chinese textile units unlikely in short term

07
May '12
Chinese domestic knitting and garment enterprises have shown a significant momentum of shifting their production capacity outwards, says Yang Shi-Bin, deputy secretary general of China Textile Industry Association.

Bangladesh has become the second largest knitwear exporter after China and its exports are about one-third of China's exports.

Japan has transferred most of its textile production capacity to other places, with the prime consideration being human cost and tariff policy.

Some insiders of the industry are concerned that overseas move of the textile industry may result in hollowing out of China's domestic industries.

At the same time, China's central and western regions may miss development opportunities as they fail to absorb these industries.

China National Garment Association says that comparative advantages of various regions are different. The capacities transferred to Cambodia and other places are relatively low-end production capacities.

At the same time, a few enterprises have made their base in central and western China by producing high-end products.

Although Southeast Asian countries enjoy low labor costs, they are in shortage of technical personnel.

Their supporting industries are imperfect, infrastructures are weak, and industry chain is not complete. Therefore, mass transfer of the textile industry will not happen in at least 3-5 years, say experts.

Fibre2fashion News Desk - China


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