However, the current development of Chinese textile industry is restricted by the following respects: firstly, improvement of grade and quality of processed and OEM products is promoted by the upgrade of textile machinery, while high-end textile machinery heavily depends on import; secondly, production lines mainly concentrate in traditional clothing field, while household textiles and industrial textiles own weak competitiveness; thirdly, since China lack marketing channels in international market and well-known international brands, Chinese control capacity of high added-value links in industry chain is weak, and China is often in an inferior position.

In addition, influenced by the financial crisis, RMB appreciation, export tax rebate decline, tight monetary policy, adjustment of processing trade policy, labor cost increase, Chinese textile industry faces enormous difficulties and challenges. In this context, many textile producing enterprises experience difficulties of production and operation, some of which successively shut down, or stop the production, posing a serious threat to Chinese textile industry.

Currently, as labor costs of Chinese textile industry have exceeded those of many Southeast Asian countries, the monopoly position of Chinese textile industry is gradually disappearing. On the one hand, prices of raw materials are on the rise rapidly, especially for cotton and chemical fiber, which exerts an adverse impact on corporate production and operation. On the other hand, enterprises own few fluid capitals, and experience interim and seasonal labor insufficiency, which raise a more urgent requirement for transforming the textile industry from the traditional labor-intensive industry to the industry with quality and efficiency innovation.

Generally speaking, Chinese textile industry sees good prospect.

Seen from international environment, there is still much space and opportunities in international market. As quota limitation on Sino-Euro textiles expired at the end of 2007, and that on Sino-U.S. textiles concluded at the end of 2008, Chinese textiles enter an era of no quota limitation, in which about over 60% regions of global textile market will fully open to China, bringing enormous opportunities into Chinese textile trade. In the next few years, the world economy is still recovering, which will inevitably promote the growth of international trade, and give favorable international market guarantee to the increase of Chinese textile and apparel export.

In order to maintain the leading position of Chinese textile industry and fight against the impact of the financial crisis, the State Council of the Peoples Republic of China puts forward 8 major tasks for adjustment and rejuvenation of Chinese textile industry, namely, stabilizing the market home and abroad, upgrading independent innovation capacity, accelerating technological transformation, eliminating backward productivity, optimizing regional layout, improving public service system, speeding up independent brand construction and enhancing corporate competitiveness.

To get more details, please go to

http://www.cri-report.com/industry-manufacturing/217-research-report-on-chinese-textile-industry-2010-2011.html

http://www.cri-report.com/237-research-report-on-china-s-underwear-industry-2011-2012.html

http://www.cri-report.com/clothing/10-research-report-on-chinese-children-s-wear-industry-2011-2012.html