The GDP growth was to a large extent stimulated and propelled by nationwide fixed asset investment in the past year 2009. China textile industry is also walking out of the slump of the year beginning up until now it gradually gained recovery momentum. Take Shaoxing county for instance, totally 1,019 new programs were launched with 32.09 billion RMB invested in the year 2009, in which structural upgrade investment took up 8.83 billion RMB. Technical upgrade for differentiated chemical fiber production and knitting industry structural adjustment are showing strong momentum.

Statistics unveiled by the Ministry of Industry and Information Technology Department exposed that the first nine months of China textile industry in the year 2009 has seen an estimated 188.2 billion RMB, increased by 6.6% compared with last year.

Although still holistically way below national industry investment level, negative growth situation was reversed. Added value of the same time period rose by 8.4%.After the implementation of relative policies in the National Textile Industry Adjustment and Reviving Program, the whole industry’s structural adjusting speed kept accelerating. Geographically speaking, five of the mid-area provinces including Hubei, Henan all have seen substantial investment growth this year and spotlighted textile industry developing orientation is speeding up to shift to western regions. Proportionate to the shifting momentum, investment of the eastern provinces is diminishing to only 59.32%. Shandong and Guangdong have decreased by 17% and 52% compared with last year. By contrast, almost all mid and western provinces have seen investment growth, although with varied degrees.

Both internal and external elements contribute to the industry shifting progress from east to mid and west. Eastern coastal provinces are the major clustering areas where most companies are centralized which put overburdened pressure on both natural resources and environment of the east. By contrast, mid and western areas are more advantageous in workforce cost as well as energy consumption price. This kind of over-centralized geographic distribution has led to a severe disconnection between regional manufacturing capability and resource allocation. Global financial crisis aggravated the situation. International market demand failed to see any obvious recovery signal which compelled many textile and garment-making companies to relocate their manufacturing base and shift to the mid and west regions.

Investing confidence gradually recovered
Gradual recovery of investing confidence laid groundwork for the recovering growth of the second half year. Shengze, major textile industry cluster area of Jiangsu province has been reinforcing the investment on energy-saving and emission-reduction machinery which directly stimulated the regional GDP growth. Shenghong and Sanlian both purchased six most advanced airflow dyeing machine and other two companies intended to induce ten airflow dyeing machine.

Source：China Textile Leader