Mr. Duyuzhou, President of China National Textile and Apparel Council said several days ago that China textile industry structural adjustment was unfortunately coincident with global economic recession leading to a severe repercussion and slowed-down development speed of the whole industry, although January and February of 2009 have seen the nadir already. Specifically, textile industry was affected by the economic recession in the following aspects: international textile industry market shrinking, aggregating domestic market competition, more companies facing losses or going bankruptcy, declining profit margin, negative growth of fixed asset investment growth, and etc, said Mr. Duyuzhou.

Nonetheless, china textile industry is gradually snapping back from the recession since March this year. Mr. Du said that thanks to the favorable central policies of “Ensure industry growth, expand domestic market demand and adjust industry structure” and an array of vigorous measures, china textile industry successfully secured international market occupancy under this execrable environment and that the technical reform as well as structural adjustment are also accelerating month by month.

According to the statistics unveiled by the National Statistics Bureau, overall domestic market revenue of more than 50 thousand over-scale China textile companies have increased up to 11.14% in July compared with 6.63% in February. Although the total profit in July is still declining on a year-on-year basis, overall profit from March to May has increased 5.06% while January and February remains plunging year-on-year.

Mr. Du also said that this unprecedented global recession has awakened the whole China textile industry— reform and adjustment is a must. China must become innovation-oriented for the long-run`s sake and must get into a healthy development track of energy-saving as well as environmental-friendly. Currently most of textile clusters are concentrated on the southeastern coastal areas. By optimizing and synthesizing all resources of conventional industry areas located in middle and western part of the country, gradually informing a nationwide textile network would be where national policy tendency. China must have to avoid extensive form development mode and obsolete productivity shift.

Source: China Textile Leader