China: Aiming For 7.2 Million Tons, But Future Unclear

Date:01-14-2008

Ma Shuping, China's Deputy Minister of Agriculture told the National Cotton Technology Symposium in Nanchang, Jiangxi that the country would pursue further technology research to improve its cotton industry, and that the country is aiming to maintain its cotton area at about 533,000 hectares, with a production goal of 7.2 million tons, according to a report from Asia Pulse.

However, the country may also be facing challenges to its market dominance. A recent study by a supply chain specialist cited on www.EmergingTextiles.com said that China "may rapidly lose its competitive advantage in the coming years."

Compared with other Asian countries, the article noted that China will be hurt by increased currency value and higher costs for labor. China is also disadvantaged compared to Eastern Europe and Central America in terms of longer lead times, which are being more important factors to clothing buyers.