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China to Enhance Control on Textile Production
China plans to intensify control on its textile production capacity, according to a regulation recently issued by the State Council.
The textile industry must continue to eliminate redundant construction to keep from destroying the fruit of last year's efforts, said an official with the State Economic and Trade Commission.
In 1998, China's textile industry laid off redundant workers and upgrade its backward technologies. It rid itself of 9.06 million out-of-date spindles and 1.16 million redundant workers in the past two years, Business Weekly of China Daily said.
As a result, the industry reversed its six-year losing trend and earned profits of 800 million yuan (96.38 million U.S. dollars) in 1999.
But with the recovery of the home textile market, firms and individual operators began to randomly increase production capacity despite the strict control by the State Administration of Light Industry.
This year, more than 20 cases of unauthorized activities were discovered in the country this year, an official of the administration said.
The State Council has formulated a regulation requiring the textile industry to restrain its production capacity while considering market demand.
Textile machinery producers and purchasers must have permits from the State Administration of Light Industry in advance of setting production targets and arranging any purchase orders of machines.
Companies found in violation will see their machines and incomes confiscated and their business licenses revoked as punishment.
Trade departments must strictly monitor imports of cotton textile machines and especially spinning frames, the regulation said.
Textile machinery production for export purposes must be registered with the State Administration of Light Industry.
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