Textile industrial restructuring has embarked on a new journey. Situation of gross low-level development of China's textile industry has witnessed incessant change till now, and this momentum will continue in the New Year.
In 2006, the employment of China's textile industry grew by 3.95 percent, fixed assets increased by 12.5 percent and sales amount and profit grew by 21.6 percent and 28 percent, respectively. The growth rate has exceeded the speed in '10th Five-Year Plan' period.
The year of 2006 was the second global quota-free year and China's textile industry faced numerous trade frictions. Statistics show that last year, exports of textile and garment industry rose 25 percent over the previous year. The comparative advantages of China's textile industry started to get noticed.
First, the sustained and stable development of Chinese society paves the basic conditions for domestic textile industry. The year 2006 was a fairly good first year of the '11th Five-Year Plan' as GDP growth was recorded at 10.5 percent. Now Jiangsu, Zhejiang, Fujian and Guangdong have named textiles as the pillar industry.
Second, the recovery of the world economy, China's accession to WTO, as well as the general principles of peaceful development, have provided good impetus to textile industry. After accession to the WTO in 2001, country's export advantage and potential environment attracted a large number of foreign investments. From 2001 to 2005, the average annual growth of foreign investment attracted by Chinese textile industry was 35.4 percent.
Jiang Heng Jie, Executive Vice President of China Garment Association, said, and this year the challenges for textile will become even more acute. Chinese textile industry will respond to this situation by continued innovation through market study and product research. While facing both domestic and international markets, garment industry should take root in 1.3 billion of Chinese population and improve the living quality of 1.3 billion local people.
Fibre2fashion, News Desk - China