A recent investigation conducted China Textile Economic Research Center reveals that the fiber consumption structure of China textile industry needs to be restructured. Technical fiber took up a relatively small proportion amongst all sub-sectors of textile industry. The current 17% of the proportion that technical fiber consumption in China is smaller as compared with the 20% to 30% in some developed countries. In addition, the polarization phenomenon is also very severe in China textile industry. Since the year 2009, around 60% to 70% of above-scale companies engaging in textile companies are on the brink of deficit. The vigilance against risks of many companies is fragile.

Besides, the technical structure of China textile industry is also unbalanced. The development of some high-performance fiber, differential fiber was lagged far behind and the industrial chain remains incomplete. The investigation also point out that the proportion of some domestic brands and some high added-value products export are very low. OEM is the major form of textiles and garment export.

The geographic structure of China textile industry should also be further optimized. Over 80% of the textile companies are concentrating in the eastern region while the development of some western provinces where resource and labor force are adequate is comparatively slow. Outdated capacity still accounted for a large part of the overall capacity which hindered the industry upgrade.

Source: China Textile Leader