In 2006, because Chinese textiles industry has been suffered special restrictive measures from overseas, and domestic sales is full comparing with demand, so many mills are facing the poor status of surviving and development, except the prices of raw materials are very high, many people in this industry think that the labor cost of Chinese textiles industry is a superiority, which is not an important reason any more. Is the fact so?
The writer thinks, whether the labor cost of Chinese textiles industry is a superiority is only a relative concept but not an absolute one. Comparing with the developing countries such as Pakistan and Bengal etc., the labor cost of Chinese textiles industry is a bit higher, but comparing with the countries such as Korea, Turkey and Italy etc., the labor cost of Chinese textiles industry has possessed with high competitive superiority.
It is worthy of mention, at present, the largest competitive counterpart for China India, which has higher labor cost than China, but because their domestic cotton price is lower, their export prices for cotton textiles are much lower than that of China.
