China textile is facing severe challenge

China is losing her competitive advantage in textile business.

Firstly, material prices, especially for cotton, are much higer than that of abroad, usually 3000 - 4000 RMB more per ton than imported cotton. This causes production cost raise a lot.

Secondly, labor cost is more and more expensive now, for a normal textile worker, their salary now is over 2000 RMB, which is about 4 times of Bangladesh, Pakistan, India, and some other developing textile big countries, they are building up more capacity in textile manufacturing.

Thirdly, the electicity price also raised a lot, even the Government take actions to restrict electricity use, which all influence a lot for the production scale. Because of the production cost raised a lot, now bigger importers from U.S.A, European countries are turning to Vietnam, Indonesia, India and some other countries.

China is losing her advantage day by day!

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