The Chinese textile industry is facing several pressures and it needs to crack these pressures through various efforts, Sun Huaibin, director of the China Textile Economy Research Centre, has said.
Speaking at the 2013 China Cotton Futures Forum held in Suzhou, Mr. Huaibin said the Chinese textile industry is mainly facing pressures from three sides – exports, gap in domestic and imported cotton price, and environment.
On the export front, the economic growth of the US, Japan and other developed countries and regions is still weak, while economic recovery in emerging market countries is in a limited range. In January-February 2013, end-market demand in developed countries showed no growth, so export pressure is still great, he said.
Secondly, the difference in price of domestic and imported cotton is about 4,000 yuan/ton, due to the policy of the Chinese Government. Although there is over supply of cotton in international market, high cost pressure should not be underestimated, the expert said.
On the environment side, the Chinese Government standards to be effective from July 1, 2014 to December 31, 2015, clearly define that direct and indirect emissions of chemical oxygen demand (COD) of existing enterprises would be 100 mg/l and 200 mg/l. This directive puts great pressure on the majority of Chinese textile enterprises, as they will not only need to upgrade technology and equipment, but will also have to invest in new land.
Mr. Huaibin said the current pressure would force textile enterprises to restructure and upgrade their production. He suggested further opening of domestic sales channels and balancing of benefits between cotton growers and the spinning industry.
On the environment, he said relevant departments could guide textile enterprises to build public energy saving facilities in cluster regions, and help businesses reduce costs.
