With the resources and environment, and labor costs rise, last year, the number of orders for textiles and textile enterprises have been transferred to neighboring countries in Southeast Asia, does it mean that China’s textile industry in the international market, comparative advantage will disappear?

“China’s textile industry a comparative advantage will play a role in long-term. Comparative advantages of upgrading and gradient transfer is the continuation of the comparative advantage of China’s two major trends.” China Textile Industry Association, said Du Yuzhou.

China’s population reached 1.32 billion, in 2007 only urbanization rate rose to 44.9 percent, a large number of rural surplus labor force engaged in the textile industry determines the comparative advantage of the textile industry will exist for a long time.

However, the textile workers in China’s eastern coastal areas of the wage level is already higher than our neighboring countries. 2007 textile workers in China’s eastern coastal hourly wage is 0.85 U.S. dollars, a level of wages in central and western China 1.55-fold, is India’s 1.23 times, 3.04 times that of Bangladesh.

“However, this does not mean that China’s textile industry, had lost their comparative advantage would be.” Du Yuzhou believe that the labor force in China’s eastern coastal creativity level of recognition by the international market, but the cost is only the developed countries or newly industrialized economies 1 / 10-1/20, the comparative advantage of the obvious upgrade. Second, China’s comparative advantage in the transfer of the gradient, with other countries unparalleled enormous space, will be labor-intensive processing in underdeveloped regions to the domestic transfer, the formation of regional industrial chain, not only to maintain international competitiveness and boost the underdeveloped developed areas in the development of the enterprises to do so has been found in the eastern region.

China is the world’s textile-exporting countries, export promotion of the textile industry has always been an important driving force for development. At present the international market demand for large-scale shrinkage of the textile industry this year, a new growth point where?

Du Yuzhou believe that the reform and opening up for the textile industry has opened up the world’s largest domestic market. At present, textile enterprises above designated size of the export delivery value of the output value accounted for sales accounting for 23 percent, while domestic sales accounted for 77 percent, compared to 2000 increased by 10 percentage points, the domestic market is playing an increasingly important role.

2008 January-November, although the textile and apparel exports to maintain 8 percent increase in November but the month has been negative growth, that is -0.26%. Only domestic demand in the central capital growth, expand the role of domestic policy, the November retail sales of consumer goods remained 20.8 percent growth, in which clothing to achieve 24.1 percent growth, according to purchasing volume reached 25.86%. At present, per capita clothing expenditure of urban residents was 5.39 times that of rural residents. If the regional economic gap between the rich farmers reach the current level of cities and towns, then only the amount of consumption growth in rural clothing will make the national dress of total expenditure than the current expansion of 2.7 times.

Du Yuzhou frankly, as a basis for consumer goods, textiles markets exist for a long time, the key lies in whether or not it has the core competitiveness. In the current international market environment, to further explore and tap the domestic market, cultivating the emerging market will be the highlight of this year, the textile industry.

What is worrisome is that by the economic crisis last year, the textile industry in recent七成enterprises the average profit margin dropped to 0.10 percent, 2 / 3 of the enterprise is very difficult, the situation in 2009 is expected to improve it?

“The textiles industry is now facing a very serious situation, but we are as a result of industrial upgrading its ability to resist risks have increased.” Du Yuzhou, introduced in 2008, the United States in the total imports fell, the proportion of imports from China have increased year-on-year; in the world generally at the plight of the textile industry, China is still more than 30 percent the size of the enterprise, the average profit growth maintained at more than 30%. The reason why these companies have weathered the risk is performing well, the key is to have advanced technology, innovation, brand and marketing network more competitive, and mainly engaged in the domestic market.

“From the essence, the crisis has become China’s textile industry to accelerate the restructuring and industrial upgrading of the propellant.” Du Yuzhou said, “We have reason to believe that the crisis in ‘winter’ will become industrial upgrading the ‘spring’.”