Upgrading An Industry

A report on the China Textile Industrial Cluster Innovation ConferenceTextile World Asia Special Report

China Textile Cluster
Textile World Asia Special Report

Upgrading An IndustryThe China Textile Industrial CLluster Innovation Conference was recently held in Xiqiao.In December of 2004, a group of high-level officials and executives from the Chinese textile industry gathered in Xiqiao, a town in China’s Guangdong province, to attend the China Textile Industrial Cluster Innovation Conference. Hosted by the China National Textile and Apparel Council (CNTAC), the conference promoted the construction and development of the Xiqiao textile industrial cluster and discussed the various opportunities and challenges faced by the Chinese textile industry after global textiles and garment quotas are eliminated.In addition, the conference also designated a third group of textile industrial cluster pilot areas in China. This group of five areas in Guangdong province were added to the existing 37 cities and 52 towns that are already industrial cluster pilot areas, which contribute about 30 percent to China’s gross national textile output.The one-day conference was attended by Du Yuzhou, president of CNTAC; Huang Longyun, standing provincial committee member of Guangdong and secretary of the Foshan municipal committee; and You Ningfeng, deputy governor of Guangdong. Fu Guangwei, director of the innovation office at the China Textile Products Developing Center, introduced the Xiqiao platform.Textile LegacyXiqiao was selected because it is a renowned textile area in Guangdong province. It is the No. 2 textile manufacturing and distribution base in China and the No. 1 textile wholesale and trading market in eastern China.Concentrated in the area are about 1,330 small- and medium sized textile companies that serve the whole textile manufacturing chain, from material suppliers to dyeing and printing firms. Together, these companies account for 8.151 billion yuan in capital investment and employ more than 60,000 workers. The annual textile production capacity in the town reaches 1 billion meters, and the annual production value is about 7.32 billion yuan. The China Textile Industrial InnovationConference was well attended.Another key reason that the town of Xiqiao was selected was because it is located in Guangdong province. One of the main textile centers in China, Guangdong is a globally important textile and garment production base. In 2003, the province’s textile production value reached 168 billion yuan -- the third highest in the country. Since 1998, Guangdong also has been the top export province for six consecutive years.Xiqiao PlatformCalled the “one platform, five pillars” model, the Xiqiao textile platform is supported by five pillars -- product testing, technology development, education and training, information service, and trade and logistics. Moreover, as the first area selected by the Chinese government for upgrades and development in the textile industry, the Xiqiao platform will be studied as a model for other cluster areas.One of the highlights of the Xiqiao platform is the product testing center. With an investment of 10 million Chinese yuan, it is the most advanced fabric testing facility in China. It will provide fabric quality testing, technology training, quality accreditation and technology consulting services to the textile industry in southern China.Post-Quota Challenges AndLessons From XiqiaoAt the conference, CNTAC’s Du said after global textile and garment quotas are eliminated, Chinese textile suppliers will face ever more fierce competition from other textile makers in the world. He said it has become more urgent and important for other textile industrial clusters in China, especially those that are in the early stages of upgrades and development, to learn from the Xiqiao platform to improve their competitiveness. The China Textile Industrial Cluster InnovationConference was attended by officials andexecutives of the Chinese textile industry. You, Guangdong’s deputy governor, added that the capacity to innovate is low among many of Guangdong’s textile companies, most of whom do not have their own brands. He said the experience of the industry upgrading demonstration area is very important to Guangdong if it were to improve its textile manufacturing capability.
January/February 2005