China's textile exports are being severely challenged by these low-cost countries. For example, India and Indonesia were the third and ninth largest suppliers of textiles and clothing in the European Union respectively. Their market share has already been achieved, while our country’s cotton exports in the Mainland have fallen year after year in the Hong Kong market and will become the first supplier country. The reason for this is that the labor cost in Pakistan is even lower. It is estimated that some Chinese textile and apparel exports are directly challenged by Southeast Asian countries’ exports.
Weak links in technology and capital-intensive sectors will be affected. China's textile industry has a big gap compared with the international advanced level in terms of production equipment, production technology, production technology, design capabilities, product development, and operation and management, especially technology, Capital-intensive sectors are less competitive. For example, chemical fiber is a capital-intensive product and has certain technological content and economies of scale. However, China's chemical fiber industry is not only lower in technology and enterprise scale than Japan and other developed countries, but also lower than South Korea and other countries, and obviously lacks competitiveness. Another example is the technical content of pure fiber products in China only, and Japan is, South Korea is.
As for the current equipment, the cotton spinning spindles should be dismantled, only reaching the level of the century, and most of the products produced therefrom have very low added value. It is estimated that the added value of China's textile exports is only equivalent to that of France and Italy. The importance of enterprise grouping According to statistics, there are more than 10,000 Chinese textile manufacturing enterprises and more than 10,000 export companies. However, there are few large enterprises with truly international competitiveness.
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