Because of the low labor cost of developing countries, there is long term competitive pressure force to developed industry countries in textile industry. In the early 20th century, the fast development of the textile industry in Japan end of the hegemony status of British and United States. In 1993, Japan became the largest export country of cotton products the entire world.
Today, about 60% of the textile industry concentrated in the Asian countries. 27 European Union member states accounted for 10%. Therefore, the world manufacturing center gradually shifting to Asia, and Europe and U.S industry will continue to be damaged. China and India have become the export powerful countries which they greatly improved share of the consumer market in Europe and U.S. At the same time these developing countries with the world’s highest economic growth rate (in 2007, 13% in China and 8.9% in India), they also the important potential retail market for European exporters. Until to 2010, Chinese apparel consumption is expected to reach 100 billion euros, and therefore China will lead the Asian market that more than Japan. The apparel consumption of Japan is only 850 million euros. Chinese official are very clear that in the arrangement of 11the Five-Year Plan (2006-2010), the government pay attention to the textile industry which is focus in the development of domestic market. This change will slow Chinese export growth in the medium-term.
In India, half the population is under age of 25, which represents huge population and economy growth in the next 30years. Today, Indian apparel consumption is about 300 billion euros of half of Chinese market. Textile products, France only occupied 1% of the Chinese market, and Italy accounted for 2%. Chinese main textile supplier countries and such as Japan, Korea and China Taiwan, which was occupied 40% of Chinese import market. European textile should create conditions to enter the developing countries. When China joined to WTO, the duty is lower than before, but India remains very high tariffs. EU had established the bilateral free trade project with India, Korea and the ASEAN member countries that will help European exporters better access to those markets.
Today, about 60% of the textile industry concentrated in the Asian countries. 27 European Union member states accounted for 10%. Therefore, the world manufacturing center gradually shifting to Asia, and Europe and U.S industry will continue to be damaged. China and India have become the export powerful countries which they greatly improved share of the consumer market in Europe and U.S. At the same time these developing countries with the world’s highest economic growth rate (in 2007, 13% in China and 8.9% in India), they also the important potential retail market for European exporters. Until to 2010, Chinese apparel consumption is expected to reach 100 billion euros, and therefore China will lead the Asian market that more than Japan. The apparel consumption of Japan is only 850 million euros. Chinese official are very clear that in the arrangement of 11the Five-Year Plan (2006-2010), the government pay attention to the textile industry which is focus in the development of domestic market. This change will slow Chinese export growth in the medium-term.
In India, half the population is under age of 25, which represents huge population and economy growth in the next 30years. Today, Indian apparel consumption is about 300 billion euros of half of Chinese market. Textile products, France only occupied 1% of the Chinese market, and Italy accounted for 2%. Chinese main textile supplier countries and such as Japan, Korea and China Taiwan, which was occupied 40% of Chinese import market. European textile should create conditions to enter the developing countries. When China joined to WTO, the duty is lower than before, but India remains very high tariffs. EU had established the bilateral free trade project with India, Korea and the ASEAN member countries that will help European exporters better access to those markets.
