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Textile Firms to Focus on Different Markets
The textile industry's five-year development plan expects the traditional industry to be upgraded by technological advancement and a shift in product composition.
The industrial blueprint, released by the State Economic and Trade Commission (SETC) on Monday, predicts that the added value of China's textile industry will grow 6.5 per cent annually and reach 430 billion yuan (US$51.93 billion) by 2005.
The export value of garments and textiles is expected to hit US$75 billion by 2005, up from US$52 billion last year.
According to the plan, progress in science and technology will contribute to more than 60 per cent of the growth in industrial added value.
Enterprises will replace backward equipment with high-tech versions.
For example, the proportion of combed yarn will increase from 16 per cent to 35 per cent and that of knotless yarn from 28 per cent to 50 per cent.
Meanwhile, the country will optimize product variety by increasing high-value products and expanding the production of chemical fabrics, decorative and industrial textiles.
Chemical fabrics, textile machines and industrial machines will become the new catalyst for the industry's continuous growth.
"The industry will also speed up reform of State firms and make regional structural adjustments,'' says the plan.
Several textile conglomerates are expected to establish their reputations through capital reorganization.
The number of fabric producers with a capacity of more than 100,000 tons will rise from the current seven to 20 in the next five years.
Textile firms in coastal cities will focus on the production of brand name products and exports, while those in interior areas will serve as production bases for domestic product sales or products with an ethnic flavour.
Textile enterprises in western regions are encouraged to speed up their development by inviting foreign investment.
Boosted by a recovery of the world market and the government's policies to encourage export, China's textile industry enjoyed a good time last year.
However, industry experts point out that the lack of value-added textile products and design ability will hamper the sector's growth and increase in exports in the long run.
The strategy of low-price competition carried out by neighbouring countries has also reduced the competitiveness of China's textiles in the world market.
China has mapped out plans for the overall development of the industrial sectors in the next five years.
Bai Rongchun, director of SETC's Industry Planning Department, said the plan, based on China's 10th Five-Year Plan (2001-05), is aimed at promoting the restructuring and upgrading of the industrial sector.
"The plan is instructive, rather than compulsory, '' said Bai, adding that the role of the government is macro-control and co-ordination, while enterprises are the main body of the restructuring.
Earlier this year, China axed nine State industrial administrations in order to streamline government operations and transfer its functions to the SETC.
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