eng201 term paper

THE TEXTİLE LEADER OF THE WORLD: CHINA 1

The Reasons Behind China’s Being the Leader of Textile Industry

Ozan Güldali

090120525

Faculty of Arts and Sciences

Esin Yegin

140120069

Faculty of Textile Technologies and Design

English 201

Ece Cihan Ertem

December 2, 2014


Topic: The reasons behind China’s being the leader of textile industry.

Thesis: China has been the leader of the world textile industry in 21st century and there are

various reasons behind of this situation which can be examined under two main titles such as

economy and technology.

I. Economic factors

A. Economic policies

1. China Government's support policy

a. Credit guaranty and financial support

b. Development plans for textile sector

2. Investments of foreign companies

- Bring profit of exchange rate

B. Low manufacturing costs

1. Having most of raw materials

2. Low labor costs

II. Technologic factors

A. Uses of technology in textile products

1. Knitting applications

a. Medical treatment

b. Spacer fabrics

2. 3D printed textile materials

a. 3D printed buildings

b. Wearable 3D printings


B. Research and development activities

1. Improved research laboratories and special R&D studies

a. New R&D centers

b. Hemp fiber’s R&D studies

2. Innovations in major areas

- Apparel


The Reasons Behind China’s Being the Leader of Textile industry

People believe that the quality of apparels, home textile products or the other textile

products indicates the wealth of their owner. These demands of peoples makes textile industry

a sector that full of opportunities. Therefore the developments and trades of textile

productions has been always wanted to controlled by various countries. The trades of textile

products has determined the economic status of kingdoms and countries since the past. Marco

Biselli states the importance of China in the history of textile, “Since ancient years, China was

a key player in the textile market. The earliest evidence of textile production in China is

cocoon of bombyx mori, the domesticated silkworm, found in Xia, Shanxi, dated between

5000 and 3000 BC” (“China’s Role in the Global Textile Industry”, 2009, p. 1). Chinese

textile manufacturers got ahead of other countries as in many fields and they succeeded to

export their products by some ways like Silk Road. Moreover, with past experiences in textile

and developing of given significance to proletarians, China has been never lost its success in

the textile sector, completely. China which entered both with a strong economy and with

having a voice in technology world to 2000s has succeeded to show this potencies in textile

industry. The success of China is not only important for them, but also important for the state

of affairs of the world economy. In the early 21st century, while the other countries was

facing with tough times, China has continued to maintain its success in textile industry well

this success has always been a topic of curiosity. China has been the leader of the world

textile industry in 21st century and there are various reasons behind of this situation which can

be examined under two main titles such as economy and technology.


The first of the reasons why China is the leader of 21st century textile industry in the

world is the economic factors which benefit the Chinese textile industry. Above all, the

economic policies which were generated and have been applied by Chinese government have

paved the way for developments of state and private enterprises. Primarily, Chinese

government constitute variously support policies to help and encourage to enterprises. For

example, government has applied credit guaranty and financial supports for textile companies

in spite of their size. According to TUSİAD, in Fujian Province, the government will

designate one million RMB (158,700 million USD) to open both in large and medium sized

cities and famous websites as special purpose admissions. In 2012, to support a credit limit of

15 thousand RMB (2380.5 USD) for each initiative of Alibaba, which is a Chinese company

and services to customers via web portal, government worked together with Alibaba. (2013,

“China Textile Industry”, p. 8 – 9). Each year, Xinyang Uygur Autonomous Region

government will give more than 20 million RMB (3.174 million USD) to support local textile

industry. Furthermore, to process technical reform, local enterprises will be supported in

regards to finance by government (TUSİAD, 2013, “China Textile Industry”, p. 9).

Furthermore, TUSİAD added that, in textile industry, China will also do more to discard filled

capacity, cut down energy consumptions and rise efficiency (2013, “China Textile Industry).

For another example, China government announced two development plans for textile sectors,

such as; “Adjustment and Revitalization Plan of Textile Industry” and “Textile Industry

Twelfth Five Year Development Plan”. On 19th, January 2012, China declared “Textile

Industry Twelfth Five Year Plan” which increased the essential purpose in coming five years.

Total exports of the industry increases 7.5 % every year and average of annual growth of

enterprises above described size is 8 % (TUSİAD, 2013, “China Textile Industry”, p. 8).

Thanks to adjustment and revitalization plan, in 2011 industrial of enterprises doubling in

number, compared with the numbers of 2009, in middle and western areas are more than 1000


billion RMB (158.7 billion USD) (TUSİAD, 2013, “China Textile Industry”, p. 8). According

to article “China Textile Industry” of TUSİAD, in Sichuan Province, development of textile

industry increased through plan on textile industry transfer policy to central and western

region of government. More than 5000-6000 textile companies were located in Sichuan and

they made there the first on textile and garment industry in western region (2013, p. 8). For

another example, Chinese government took some decisions about tax concession. According

to TUSİAD, the export tax payback rate was increased by China Government from 14 % to 15

%. Moreover financial institutions were encouraged to provide credit guaranty and financial

support to small and medium-sized textile enterprises (TUSİAD, 2013, “China Textile

Industry”, p. 8). Textile enterprises whose net sales are 20 million RMB (3.17 million USD)

annually have been absolved from estate tax and all of the textile enterprises have been

absolved from paying the local income tax from 2011 to 2016. It will be absolved from

income tax in two tears after first lucrative year, and give half in the next three years for

enterprises which are built in economically depressed areas. When state-owned textile

enterprises transfer the all property right to other authorities, they will absolved from business

tax as restructure (TUSİAD, 2013, “China Textile Industry”, p. 8). From the examples given

above, it is clear that, China government has indicated serious devotion to be able to support

to textile enterprises by economically. Furthermore, China has been the one of the most

attractive regions to be able to a good profit for foreign companies. The most important of the

reasons of this, they could bring profit in order to exchange rate. Biselli states that, in 2005,

the China government published that a floating exchange rate policy would be implemented.

Although the government met a loss a conservative rise, it has been spending a part of its

reserves to get US dollars. Because of this, there were an undervaluing pressure over the

Yuan. Moreover, it caused a competitive environment in textile producers in China (2009,

“China’s Role in the Global Textile Industry”, p. 6). There is a strong relation between the


apparent rate and all global trading transactions. Countries with undervalued currencies are

approved by foreign buyers to use their relatively overvalued currency to purchase “cheap” in

the local market (Biselli, 2009, “China’s Role in the Global Textile Industry”, p. 6). In view

of this information, it can be claimed that, thanks to exchange rate policy, foreign companies

decide that China may be the best industrial region to gain profit, and they help to

development of Chinese industry with locating in there. In brief, it is obvious that Chinese

textile industry has been developing day-by-day owing to economic policies which has been

executed successfully.

Not only economic policies, but also low manufacturing costs in China have

significant efficacies in textile industry. For instance, having the most of the raw materials of

textile industry provides that enterprises spend low expense for the first phase of production.

China takes the first position in the cotton textile industry in the world, thanks to its volume

and production capacity. The following data indicates agricultural and textile production, and

also importation of cotton. In 2006, when the amount of planted areas was 5,666,666 hectare;

6,646,000 tons lint was produced in China. There were about 40 million farmers, but about 20

million textile workers involved in textile. Moreover, cotton importation increased from

2,560,000 tons to 3,640,000 tons between 2006 and 2009 (Jianchun, “Natural Fibres in

China”, n.d., p. 53). Also, as can be seen in Figure 1 and Figure 2, the cotton industry has

developed in a significant rate. Jianchun explained that, China has had the biggest wool

textile industry; moreover, about seventy-six percent of its has exported to countries such as

Uruguay, Australia, Argentina, and New Zealand. Thanks to raw materials which are

provided by Chinese farmers and goat herds, almost all silk and cashmere textile are produced

in China (“Natural Fibres in China”, n.d., p. 54- p. 55). In the Table 1, it can be seen that the

row materials which are used in Chinese textile sector are met by national production. This

clearly demonstrates that, providing the most of the raw materials for textile industry is a


critical advantages to be leader of this sector in the world for China. Additionally, the working

with low wages of textile labours reduces the cost of manufacturing and provides a serious

gain to enterprises. Biselli reported that, in recent decades, to try to find better life-

perspectives and jobs, many rustic Chinese, who are not educated or technically trained

generally, moved to the cities. As a result of this, these people looked for low-skill jobs such

as textile industry. Hence, according to immense population and strong ruralisation of China,

the country may be only that takes heart from the huge human capacity. This position causes

low wages, especially (“China’s Role in the Global Textile Industry”, 2009, p. 5). Taking all

these facts into account, it is clear that, textile companies in China gain some advantages by

employing Chinese labours with low wages. In short, the positive impacts of having the most

of the raw materials for textile industry and working with low wages of Chinese labours cause

low manufacturing cost of textile production for companies; also, they provide that increasing

and developing of textile production and textile industry in China.

The another reason of why China is the leader of world’s textile industry in the 21 st

century is the technological factors which improve the product quality. Tiankai explained that,

independent improvement and the development and technique of new technologies have a

remarkable growth. This growth has triggered industrialization of high performance fibers

(carbon fiber, aramid fiber, UHMWPE) advanced processing technology and new composite

spinning technology(2012, p3). To begin with, utilization of technology in textile products

give so many benefits for country. Smart textile products which manufactured with help of

technology are used for some specific aims in major areas. Most importantly, knitting

applications are the one of the most remarkable technological applications. First area of using

of knitting applications is medical treatments. CNITA says that, the evolution and utilization

of textiles get some facilities for medical science and on the contrary essential facilities for the

textile industry rising from the output of textiles for medical operations. Evolution of new


surgery technologies end up with the collaborate of doctors and textile industry experts.

Material composition, fiber’s attitude and characteristics of derogation are described the

textile’s morphology such used as implants(n.d., p3). There are several types of textile usage

in medical area and this products have some special features one of them antibacterial feature.

According to CNITA, knitted technology usages in multiple kinds of bandages, medical

stocking, particular parts of orthopaedic equipment production of mattress for beds, surgical

tables and wheelchairs are some of the production area of spacer fabrics. Knitted fabrics also

aimed to find areas of use between implants such as; synthetic blood vessels (which can be

circular knitted or warp knitted), surgical meshes, covering of artificial valves(n.d., p3). The

other usage area of knitting applications is called spacer fabrics. Two apart fabric parts are

knitted to be attached together with a yarn and this resulting 3D appearance structure called

spacer fabric. These spacer fabrics have a great growth since when they used first. Because

their advanced specials make them irreplaceable. There are several usages of spacer fabrics.

They can be seen on in the orthopedic support appliances, in bras and shoes. Because of their

heat insulation or for creating aeration passages attributes, they also can be used in smart

clothes. In order to lead off water from soil, spacer fabrics which are a kind of geotextiles are

utilized. Spacer fabrics can be supported inlaid in motor production or ship manufacture.

Besides, when spacer fabrics are used correctly they can be electrically conductive, flame

retardant and anti-bacterial(CNITA, n.d. , p2). In addition, 3D printed textile materials are

also a reason for China’s leader situation in textile industry in 21st century. 3D printed textiles

reach several areas and they will spread more and more quickly. As an illustration, WinSun

Decoration Design Engineering Company build ten houses with huge 3G printers in less than

a day. The houses’ materials combined with recycled material and these homes’ prices are

more than US$5000. This can be an idea to be helpful to solve housing crises in developing

1countries(Blain, 2014). Wearable 3D textiles is another issue. Scientifics and fashion


designers work together and create some unusual samples. Luimstra states that, SHIGO which

is a Chinese art studio create a dress which consist of only 3D printed material which creating

3Doodler pen(2014). To conclude, with the addition of the integration of technology for

textile applications, China will continue its success in this area.

In addition to uses of technology in textile products, research and development

activities in Chinese companies also a reason for success of China’s textile sector. Primarily,

improved research laboratories and special R&D studies have really strong effects for the

progress of scientific activities’. First, new R&D centers makes R&D works more practicable

and make them more efficient. Scientific studies have a significant place for textiles as they

do in all areas. Chinese government and Chinese companies are aware of the important of

R&D studies and they started to work towards this goal. Many textile companies like Toray

Group opened new R&D departments which contain such as nanotechnology, fiber

processing, dyeing or testing laboratories et cetera. As an indication of this; the Hong Kong

government built five R&D centers in 2005 and 2006. This facilities aimed to support the

progress of high technology manufacturing. Two of these centers are; the Automotive Parts

and Accessory Systems Centre (APAS) and the Hong Kong Research Institute of Textile and

Apparel (HKRITA) (Eric Thun, n.d., p11). Special aimed technological products and some

new developing products are produced in these R&D centers so firms can marketing these

well-qualified products easily. Second, studies about improving hemp fiber’s properties are

promising because when hemp fiber is powered, it gives well results. After some integration

studies with other fibers like cotton, silk, wool or manmade fibers, hemp fibers characteristic

properties can be turn into the other the combined fiber’s properties so this provides more

convenient fiber more than just hemp fiber. An example for this, just like pure hemp fibers,

hemp viscose fiber has also extremely anti-bacterial features that is a very interesting case

(Jianchun, n.d., p56). Thus, producers can take the advantages of hemp fiber’s properties and


the newly produced fiber’s cost is more cheaper and characteristics are more than better

without hemp. Furthermore, innovations in major areas have really important place for textile

sector. Apparel is the most substantial field of China’s textile sector and innovations in this

field are efficacious. With the consumer’s demands and guidance, to respond to demand,

various innovations took place. Moisture observant fabrics (absorbs the sweat and moisture),

waterproof, dyestuffs and dyeing mechanism of fabrics, protective features (from UV or

wind), elasticity and durability are some characteristics that desired. Establishment’s latest

techniques and latest products exalt them with their unmatched possessions withal it assures

to intensify the relationship between the company and the client (Knappe, 2011, p58). Some

dyeing techniques help saving the water usage, reducing energy and diminish the wastes of

textiles. Organic clothing is also rising nowadays especially for babies because of it’s plenty

of benefits such anti-allergenic structure and without chemical waste. To sum up, research and

development facilities getting more effective for textile industry and innovative approaches

will make China’s textile sector unbeatable.


In conclusion, thanks to various effective economic and technology factors, the

Chinese textile industry has been at the first place between the international textile industries

in 21st century. To summarize, firstly, China has lived important economic improvement since

early 2000s and it has provided that China uses this economic power to support textile

industry. Both the benefits of the policies, which are encouraged hundreds of textile

enterprises, of China Government and foreign investments which want to profit by the huge

and strong textile area of China have significant role in further improving of the Chinese

textile. Furthermore Chinese enterprises are very successful to apply local technological

achievements to textile industry, and this applications are very effective to China overtakes

the other countries in textile world. Not only uses of technology in textile industry but also

given the importance to Research and Development Departments of the Chinese companies

provides that textile technologies of China increase rapidly and whereby China can maintain

its position in textile area easily. Based on all these factors, along the 21st century, China has

maintained its leadership in textile industry, successfully. It can be said that, as long as China

gives same importance to textile sector and follows the developments in textile technolo gies,

it will not allow that nothing overtakes China. In China, textile industry has a remarkable

importance; therefore, government should never break their supports and companies should

maintain following technology without interruption. If there should be a suggestion for future

researchers who will investigate the importance of China on textile industry, they should pay

importance to both innovative technological improvements of China and economic and politic

decisions of government.


References

Biselli, M. (2009). China’s role in the global textile industry. Retrieved from http://www.

ceibs.edu/bmt/images/20110221/30207.pdf

Blain, L. (2014). Chinese company uses 3D printing to build 10 houses in a day. Retrieved

from http://www. gizmag.com/china-winsun-3d-printed-house/31757/

Jianchun, Z. (n.d.) Natural fibres in China. Retrieved from ftp://ftp.fao.org/docrep/fao/011/

i0709e/i0709e08.pdf

Knappe, M., Domeisen-Schibilia, N., Droste, I., Della Corte, K., Premprung, K., Hagen, V.

(2011). The Chinese market for clothing. Retrieved from http://www.intracen.org/

uploadedFiles/intracenorg/Content/Exporters/Sectors/Food_and_agri_business/Cotton/

AssetPDF/China%20final%20technical%20document%20for%20print1.pdf

Lazar, K. (n.d.). Knitted fabrics. Retrieved from http://www.cnita.org.cn/en/simpledetail.

aspx?sid=17

Luimstra, J. (2014). This designer created wearable 3D printed clothes. Retrieved from

http://3dprinting.com/products/fashion/designer-created-wearable-3d-printed-clothes/

Thun, E. (n.d.). Hong Kong, Manufacturing, and General R&D. Retrieved from http://www.

savantas.org/wp-content/uploads/2014/06/8_Thun.pdf

Tiankai, W. (2012). Sustainable development of China textile industry and Win-win

Cooperation in global textile industry. Retrieved from http://www.itmf.orgwb/media/

hanoi/afterhanoi/Wang.pdf


TUSİAD (2013). China textile industry. Retrieved from http://www.intracen.org/

uploadedFiles/intracenorg/Content/Exporters/Sectors/Food_and_agri_business/Cotton/

AssetPDF/China%20final%20technical%20document%20for%20print1.pdf


Figure 1. Cotton spinning spindles in China. Adapted from “Natural Fibres in China” by

Z. Jianchun, n.d. Copyright by The Research Centre of Chinahemp.


Figure 2. Production of cotton yarns in China. Adapted from “Natural Fibres in China” by

Z. Jianchun, n.d. Copyright by The Research Centre of Chinahemp.

Table 1. Wool, cashmere, raw silk production and processing in China. Adapted from

“Natural Fibres in China” by Z. Jianchun, n.d. Copyright by The Research Centre of

Chinahemp.

eng201 term paper

Economy & Finance