Increased profitability in the industry will continue to maintain high prices
In a recent analysis of China's textile industry, the economic performance during the "Eleventh Five-Year Plan" period was reviewed and discussed. Following the release of 2010 national economic data by the National Bureau of Statistics, an industry conference was held in Beijing, drawing significant attention from professionals in the sector. The event aimed to evaluate the development and characteristics of the textile industry over the past five years, highlighting its resilience despite challenges posed by the global financial crisis.
The conference emphasized that, although the industry faced difficulties during the "Eleventh Five-Year Plan," it continued to grow steadily, with improvements in quality, efficiency, and structural transformation. Industry leaders and officials from various associations attended the meeting, including Du Yuzhou, President of the China Textile Industry Association, Xu Kunyuan, Vice Chairman of the China National Textile and Apparel Council, and representatives from the Ministry of Industry and Information Technology.
According to the analysis presented at the conference, the textile industry saw a significant increase in output value in 2010, with stable production and sales, and a rising contribution to value-added growth. Major product outputs reached record highs, and total investment in the sector continued to rise, especially in the apparel industry. The regional shift of textile production towards central and western China accelerated, while exports expanded, increasing both international market share and competitiveness.
Investment in the industry grew substantially, with actual investment reaching 400.6 billion yuan in 2010, representing a 1.51-fold increase compared to 2005. The number of new projects started also rose significantly, showing strong momentum for future development. Meanwhile, textile exports surged by 75.72% from 2005 to 2010, reflecting improved global competitiveness.
Domestic demand played a crucial role in driving growth, with the retail growth rate of clothing, shoes, and textiles above designated size reaching 24.8% in 2010—6.4 percentage points higher than the overall societal retail growth. This indicated a robust domestic market, supporting the industry's expansion.
Profitability in the sector also improved, with the profit margin rising to 5.44% and the asset contribution rate reaching 13.89% in 2010, both significantly higher than in 2005. Additionally, the transfer of textile production to central and western regions became more pronounced, as investments in these areas increased, while the eastern region's share of total investment declined.
Looking ahead, the conference noted that the global economy remained in recovery mode in 2011, but growth was expected to slow due to high unemployment in developed countries and inflation in emerging economies. Domestically, economic growth might show a downward trend, with slower fixed asset investment growth. Fiscal and monetary policies were expected to remain tight, with a focus on social welfare and infrastructure. The renminbi was anticipated to continue appreciating gradually against the U.S. dollar, and raw material prices, such as cotton and chemical fibers, were likely to stay elevated.
Overall, the textile industry demonstrated strong performance during the "Eleventh Five-Year Plan," setting a solid foundation for future growth. With continued domestic demand, improved international competitiveness, and ongoing structural adjustments, the sector is well-positioned to face the challenges and opportunities of the coming years.
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