China plans to link up cotton growing to finished garment sector

Chinese apparel and footwear makers although have shifted their production due to increase labour cost to other countries. China continues to remain strong as a major materials source for the textile industry.

Chinese textile sector is not giving by hopes, the government in China’s far west Xinjiang region recently announced its plans to increase cotton farm subsidies and encourage textile manufacturers to build plants in 11 communities. The idea is to link up its cotton growing sector to finished garments, and export goods to Europe by rail.

Xinjiang authorities are focusing towards pulling back the kinds of companies that have been moving abroad, especially to Vietnam.

It has been recently reported that 90% of first-quarter garment sector investment in Vietnam came from Chinese companies such as Yulun Textile, which is building a plant in northern Vietnam, according to Xinhua Chinese state news agency.

With Chinese investment building up in Vietnam, Vietnamese clothing and related goods exports has shown a upward moving trend, increasing nearly 22% in first quarter from same period 2012 to $4.5 billion as per the Vietnamese General Statistics Office.

At present, China stands as a second largest for Nike, Vietnam having outstripped China three years ago as the leading producer of footwear for Nike, followed by Indonesia.