Some experts say that the Chinese textile sector should improve its production and stop orderless competition as it faces greater adversity in anti-dumping and safeguard measures experienced during export.
China has one of the largest textile trades in the world, accounting for over one seventh of global textile exports. Textiles are also a pillar of the country's exports. At present though, the sector is in a difficult position: America carried out safeguards towards the Chinese textile industry in May; the EU advised the Chinese textile sector not to use double-nitrogen coloring materials in 2000; India, which consumes almost a half of Chinese silk exports, released anti-dumping measures, targeting Chinese raw silk. All the above measures restricted Chinese textile exports.
Generally used non-developed technologies and inefficient management structures make the Chinese textile sector a still labor-intensive industry. At the same time, a large quantity of textile production uses single processing materials, without their own brands and having low fringe value. The Chinese textile industry's competitive edge lies in its low labor costs, which now are threatened by other developing countries. Meanwhile, the sector is without competitive power in advanced technologies and high-quality production.
A principal with the Inspection Department of the General Administration of Quality Supervision, Inspection and Quarantine said, the textile sector's current situation is both a challenge and an opportunity. To promote the development of the textile industry and enlarge its export, the bureau tries to provide effective management and policy support for enterprises. For example, export production for excellent companies is free of examination. These companies pay greater attention to the quality of their production and therefore have competitive power in the international market. With the first half of the year effected by SARS and other adversities, the impact on sector companies was only light as exports still increased rapidly.
Still, some experts gave advice to enhance production quality and create famous brands to increase fringe value; and understand requirements in both overseas and domestic markets and adjust production and marketing strategies according to these changes.
A lot of small to medium-sized companies enter the textile field and compete with low prices. Orderless competition like this not only affects large companies, but lets importing countries carry out trade barriers more frequently. Government departments are now adjusting policies to reduce orderless competition and negotiate with countries to cancel sector trade barriers.
(China.org.cn by Feng Yikun, September 6, 2003)
