Blog: History repeats itself
Leonie Barrie | 17 February 2004
The world and his dog seem to think that China will monopolise the global textile market after 2005 – everyone except China that is. Cao Xinyu, deputy director of the China Chamber of Commerce of Import and Export for Textiles, believes the predictions are sensationalist, at least while China continues its focus on low-end products and on an increase in production quantities. He says China’s market share is also threatened by likely hikes in the price of cotton imports which, in turn, will partly offset its cost advantages.
Cao believes that China is keen to develop a capital- and technology-intensive textile industry rather than the current labour-intensive one, shifting towards higher-end products, and eventually moving part of its production to other countries. Furthermore, he says China’s input accounts for just 10-20 per cent of the cost of a garment and many operations are funded by foreign investors.
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