China set for steady growth in 2014

According to its 2013 report, the Chinese Ministry of Industry and Information Technology (MIIT) predicts

 steady growth for China’s textile industry in 2014. In the first eleven month of 2013, the production and export of textiles saw a clear growth of 8.5 percent compared to the same period in 2012.

Manufacturing and the export of fibers and yarns, fabrics, textiles and garments are especially promising areas and increased by 6.3 percent, 8.5 percent, 7.2 percent and 8.1 percent, respectively. Thus, China will maintain its leadership position in the garment and textile sector despite seeing wages of textile workers triple in the last decade.

Though this increase in wages of garment and textile workers has already negatively affected international sourcing with buyers choosing other Asian countries with lower labor costs over China, the decline in international orders has been offset by increased domestic demand and efficiency improvements in the management of the textile and garment factories.

From January to October 2013, the Chinese textile industry could thus report a profit of 243.9 billion yuan (40,3 billion US dollars), an increase of 18.3 percent year-on-year. Textile exports increased in the first, second and third quarter by 6.3 percent, 8.5 percent and 6.1 percent, respectively. In October and November 2013, they increased by 5.9 percent and 8.1 percent .

In terms of continuing challenges in 2014, China’s textile industry will have to deal with the large difference in prices of domestic and imported cotton as well as rapidly rising labour and other costs while maintaining its international competitive advantage. In 2013, the percentage of China’s textile and garment exports to the EU, the US, Japan and other countries already declined.