New policy- Dawn to textile industrial

01 Apr,2014

Textile industrial experienced a steadily increasing in 2013. Overall, textile industrial has stepped into a continuous, slow growth phase.

Impact of raw material has becoming more and more obvious for the whole textile industrial. 2014 is the third year of the implement of China cotton purchase and storage policy, continued cotton price difference of domestic and abroad caused a huge impact to China's textile industry, which makes China cotton spinning industry facing a stronger hit than the other industrials.

On the other hand, instruction adjustment makes the orders, profit, including productivity move towards to those large enterprises, especially in the cotton spinning, knitting and clothing industry.

No.1 document of Central Committee of the CCP points out that China will pilot on Xinjiang cotton with target price subsidies, which means the target price will be set by state. This is an important reform in promoting agricultural products price formation mechanism. The implementation of the new policy can help domestic cotton spinning enterprises walk out of the dilemma, and more conducive to reasonable allocation of market resources. Eventually the policy will be a positive role in the sustainable development to the health of the cotton industry.

Excerpted from: China Industrial Research Net. 2014-03-28

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