Source: China Textile Network Company 

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Textile and Apparel Weekly June 8, 2012

EXTRACT

Content: 

 Chemical safety in textile and apparel markets of emerging countries 

 Chinese fashion group has global designs 

 H&M seeks to source more clothes from Bangladesh 

 China a bright spot on wool's gloomy radar 

 Sharply-slowing Chinese textile exports worry industry

 Ralph Lauren plans expansion in China 

 Continued fall in New York cotton futures, China market drag down spot rate

 China to amend law on work safety 

 Armani to target China's middle class shoppers 

 China's cotton demand expected to rebound 

Chemical safety in textile and apparel markets of emerging countries 

DATE: 2012-06-08

Chemical regulations throughout Asia 

Apart from Japanese Law 112 that has long since limited the formaldehyde contained in apparel, the 

earliest Asian regulation of chemicals in textiles was in 1997 by India. This banned specific Azo dyes 

from being used in apparel products and textiles. The next was Chinese regulation GB 18401-2003 

that became effective in 2005 and also restricts azo dyes and formaldehyde as well as defining the 

pH value and certain color-fastness tests, to address safety concerns for chemicals, dyestuffs and 

wet processing. 

Arising from the necessity for the compliance of their exports with EU and US safety regulations and 

their corresponding restrictions on substances, not only have emerging countries adapted, but also 

developed their own textiles and clothing consumer safety regulations. Recent regulations now 

require imported brands and distributors take pains to test and comply with stringent regulations 

when expanding into emerging markets. Examples of such legislation include: South Korea 2010, 

Taiwan 2011 and Egypt 2012, where sophisticated official control systems are now in place that 

affect homegrown and imported apparel and are mandatory for all retailers and brands that wish to 

sell their products in these markets. 

Banned Azo Dyes 

Defined as containing within the molecule at least one azo bond (-N=N-), azo dyes have typically 

found use as colorants in textiles and apparel. Certain azo dyes can release harmful aromatic 

amines when exposed to specific chemicals or enzyme conditions. Some aromatic amines are 

carcinogenic and so are banned. Azo dyes are banned by Egypt, India, China, South Korea, Taiwan 

and Vietnam. While Japanese government agencies are currently considering similar legislation, 

voluntary restrictions were announced on March 29, 2012 by Japanese textiles and leather industry 

associations 

Cadmium Compounds 

It is a naturally occurring and abundant metal and cadmium is frequently used in dyes (typically 

green, yellow, orange, red), plastics and in metal accessories for textiles and apparel. Used in the 
Source: China Textile Network Company 

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manufacturing of polymers like PVC, cadmium is also a well-known stabilizer. It is often used as a 

coating agent, since cadmium is relatively hard to oxidize. However, there is commonly held 

suspicion that cadmium and its derivatives are carcinogenic. Cadmium is restricted by Egypt and 

Taiwan. 

Flame Retardants 

It is common for regulations to restrict two classes of flame retardants that involve halocarbons. The 

first class is brominated flame retardants and these include polybrominated biphenyl (PBB) and 

polybrominated diphenyl ether (PBDE). These compounds can deteriorate into pentabromodiphenyl 

ether (pentaBDE), octabromodiphenyl ether (octaBDE), or decabromodiphenyl ether (decaBDE). 

The second class are organophosphate flame retardants and these include tris(2,3-dibromopropyl) 

phosphate (TRIS), bis(2,3-dibromopropyl) phosphate and tris(1-aziridinyl)-phosphine oxide (TEPA). 

Brominated flame retardants are stable and heat resistant, and for this reason have a wide range of 

application, such as in textiles, electronics and automobiles. With an equivalent toxicity to PCBs and 

DDT, PBBs and PBBEs/PBDEs are compounds also suspected as being carcinogenic. Their 

persistence in the environment also makes them a threat to wildlife. Once entered into the 

environment and a part of the food chain, they can pass up chain to humans. Organophosphatebased flame retardants TRIS and TEPA are suspected carcinogens as well. Restrictions on flame 

retardants are enforced in Egypt, Japan and South Korea. 

Formaldehyde

Despite being a volatile organic compound, the chemical properties of formaldehyde make it suitable 

as an agent for anti-creasing and anti-shrinking. It can also form polymeric resins when blended with 

phenol and urea. Formaldehyde may be found in textiles and apparel for stiffening and permanent 

pressing of fabrics. Recently it has been identified as a high risk for formaldehyde failures with 

pigment prints. Formaldehyde is a highly toxic chemical that can cause cancer or induce irritation to 

mucous membranes, despite being widely useful. Egypt, China, South Korea, Taiwan, Japan and 

Vietnam restrict the use of formaldehyde, but it is not yet restricted by India. 

Lead Compounds 

Lead is a heavy metal that naturally occurs in several ores. The uses for lead in textiles and apparel 

are associated with plastics, metal accessories paints and dyes. Also suspected as carcinogens, 

lead and its derivatives can seriously impact the human kidneys, immune system and central 

nervous system. Restrictions on the use of lead are in force in Egypt, South Korea and Taiwan. 

Organotin Compounds 

Compounds that contain at least one tin-carbon bond are referred to as organotins. Organotin 

compounds find use as catalytic agents, industrial biocides, plastic stabilizers, glass coatings, 

antifouling paints and pesticides among its major commercial applications. 

These compounds pollute the environment and are harmful to aquatic life. Even at very low 

concentrations, organotins are extremely toxic to marine and freshwater organisms. The primary 

source of exposure to humans of organotin compounds is from seafood and the most common harm 

is damage to the immune system. Tributyltin (TBT) and triphenyltin (TPhT) are the most common 

organotins used in the textile and apparel industries, because DBT is mainly used as a stabilizer in 

PVC applications and for plastisol prints instead. Organotins are restricted by Japan, South Korea 

and Taiwan. 

Phthalates

Most commonly used as a softener for products made from polyvinyl chloride (PVC) these are a 

ubiquitous class of compounds. Phthalate is a term referring to the di-ester derivatives of phthalic 

acid and so is a group of different compounds, although they are structurally related. 
Source: China Textile Network Company 

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Modern commerce makes diverse use of phthalates. One common use is to soften PVC products 

that require flexibility, for example blood bags and children’s toys. Phthalates are also found in many 

consumer products, such as textiles, footwear and cosmetics because they are used as lubricating 

oils, solvents, fixatives and detergents. Its very diversity inevitably creates human exposure 

opportunities. Plastisol prints on garments often contain phthalates and they are also present in 

PVC-based materials that are used for coating, shoe soles and in many accessories produced by 

the garment and footwear industries. Recent studies have shown that phthalate exposure can 

amend estrogen levels in the hormone systems of humans and animals, giving rise to serious health 

problems like cancers and impairments to the reproduction and development. Phthalates are 

restricted by Egypt and South Korea. 

Chemical hazards like those described above are regularly communicated and the public is 

becoming more and more aware of the dangers they pose. When it comes to compliance with 

chemical restrictions it is not enough to simply get your merchandise into the market. Enforcing 

prudent chemical safety measures in your supply chain also demonstrates your social responsibility 

to the public and positively reflects on your brand image. 

Source: CNTEX 

Chinese fashion group has global designs 

DATE: 2012-06-07

When research agency Millward Brown Optimor released rankings of the fastest growing global 

brands this week, at number 10 was a company that most Financial Times readers have probably 

never heard of: Chinese youth fashion brand Metersbonwe. 

Some mainland brands are becoming household names in the west – such as Lenovo, Haier or 

Huawei – but they were not on the list. Instead, unknown Metersbonwe appeared, just a few slots 

below Apple. 

Present in even the smallest Chinese cities, Metersbonwe will soon be coming to a high street near 

you if Zhou Chengjian, founder and chairman of the board, has his way. Within three to five years, 

he plans to push into the fashion markets of London, Paris, New York and Milan with his youthful 

and inexpensive designs. 

With revenue last year of Rmb10bn ($1.6bn) and net profit of Rmb1.2bn – up 32 and 59 per cent 

respectively year on year – Metersbonwe has done what so few other Chinese brands have been 

able to: outpace foreign rivals in the hyper-competitive mainland fashion market. Millward Brown 

Optimor ranked Metersbonwe tenth in the world for “brand momentum” – advertising-speak for 

growth potential and consumer popularity. 

The result was based entirely on the company’s performance in China, where Euromonitor says 

Shenzhen-listed Metersbonwe is the third-largest apparel brand by sales behind Nike and Anta, a 

local sportswear brand. Even China’s economic slowdown seems not to be dimming the company’s 

lustre: Metersbonwe is predicting a 20 per cent rise in revenues and net profit this year, with sales 

so far appearing recession-proof. 

The Metersbonwe story embodies the phrase “rags to riches”. Mr Chengjian, 46, who created the 

company 17 years ago, started out as a penniless tailor. Now he is the second richest person in 

Shanghai – a city of the stunningly wealthy – with a fortune of nearly $5bn, according to the latest 

Hurun rich list. 
Source: China Textile Network Company 

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A peasant from a tiny village in coastal Zhejiang province, he says he was no good at school, did not 

enjoy working in the sun and rain on construction sites, but did like the soft feel of fabric under his 

fingers so became a tailor. “My dream is to be the world’s tailor,” he told the FT in an interview this 

week, in an office decorated with posters of Chinese leaders Mao Zedong and Deng Xiaoping. His 

staff say he reveres Mao because he “made China free” and Deng because he “made China open”. 

Mr Zhou says there is no particular secret to his success, apart from keeping his head amid all the 

fabulous opportunities for making money. “I work very hard and China is developing very fast,” he 

said. “Other Chinese companies dabble in too many things. But we set out 10 years ago to focus 

only on fashion.” 

He created a downmarket version of H&M and Zara, targeting college students and recent 

graduates, with a brand that many think is European. Although Mr Zhou claims Metersbonwe was 

first a Mandarin name, many of its shops carry most prominently only the English transliteration, an 

obvious attempt to appeal to Chinese consumers who equate foreign brands with better style and 

quality. 

“They did the right thing at the right time,” says Wu Xiaobo, dean of the school of management of 

Zhejiang University, who points out that Metersbonwe was the first garment company in China to 

adopt the international practice of outsourcing all manufacturing. 

However, as European and US retailers pour into China seeking growth to compensate for stagnant 

markets at home, the Chinese market is becoming more competitive and Metersbonwe has sought 

to meet the competition head-on by moving upmarket with the 2008 launch of Me & City, a subbrand targeting urban middle-class consumers with European styling and European models in 

advertising. But Mr Zhou told the FT that Me & City, whose flagship Shanghai store closed recently, 

needs to be repositioned to differentiate it from the main Metersbonwe brand. 

With international retailers beating a path to China to make money, why is Mr Zhou so intent on 

launching overseas? In his typically earthy way, Mr Zhou says he is like a frog in boiling water, 

where the water is the increasingly competitive Chinese fashion scene. If he hangs around too long, 

he will die; there is no alternative but to jump out while there is still time – to become a household 

name around the world. 

Source: Financial Times via CNTEX 

H&M seeks to source more clothes from Bangladesh 

DATE: 2012-06-07

Swedish fashion retailer Hennes & Mauritz AB (HM-B.SK), the world's second-largest clothing 

retailer, wants to source more products from Bangladesh to take advantage of cheap labor, but 

unrest and violent strikes present a big hurdle to expansion in the troubled country. 

"The often-recurring strikes and demonstrations disrupt production and cause delays. We want to 

grow in Bangladesh [...] a stable market will benefit us buyers, the suppliers and the workers," 

H&M's head of sustainability, Helena Helmersson, told Dow Jones Newswires. 

About 25% of H&M's products are made in Bangladesh and the company aims to increase this 

figure, but it isn't the only big retailer looking to expand there. The industry already accounts for 

about 80% of Bangladesh's exports and employs about 3 million people, and research company 

McKinsey expects apparel exports to double by 2015 and triple in 10 years, as big buyers move 

from China as capacity constraints and wage inflation erode profit margins. 
Source: China Textile Network Company 

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But Bangladesh has been plagued by political turmoil, with violent street protests erupting last month 

following the disappearance of a leading opposition figure. In addition, working conditions remain 

poor, with substandard lighting, overcrowding and long working hours common. 

In 2010, 21 workers were killed by a fire at a factory in Bangladesh making products for H&M and 

other retailers. 

Furthermore, apparel workers have no real collective force in Bangladesh. 

"The situation is highly fragmented," Helmersson said. "There are about 56 garment and textile 

workers' unions." 

H&M said it aims to use its influence to apply pressure on its suppliers in Bangladesh to improve 

working conditions. In 2011, it held talks with government representatives, unions, and the biggest 

suppliers about its expansion plans and the surrounding issues. 

"We told them how we would like to grow in Bangladesh, but that the ongoing instability in the 

country makes it difficult for us to plan production and makes us wonder if we dare grow there," 

Helmersson said. She added that H&M wants suppliers to set up democratic labor committees that 

can negotiate wages and working conditions with factory owners, and a program will be rolled out 

and tested this year and next. 

"We are big buyers in Bangladesh and we want to take greater responsibility for working conditions 

there," Chief Executive Karl-Johan Persson said. "And we reward the suppliers who take the greater 

social responsibility with more business, larger orders and longer contracts," Persson said. 

In 2011, H&M was a major buyer of ready-made garments in Bangladesh. 

Source: CNTEX 

China a bright spot on wool's gloomy radar 

DATE: 2012-06-07

Rising domestic demand for wool in China and other emerging countries means all is not doom and 

gloom for the Australian industry, according to AWI. 

Clothing spending by Chinese urban consumers is expected to grow 12.5 per cent year-on-year by 

2020. 

AWI’s latest subscriber e-newsletter says the China National Textile and Apparel Council recently 

approved a 10-year plan to increase textile and clothing exports by 7pc annually. This would raise 

the export value of its fibre products to $U400 billion by 2020. 

The report, compiled by AWI’s Paul Swan and Allan Wang, shows the value of garment and textiles 

rose to $US29.5b – up 3.9pc - and $US20.4b - up 1.4pc – on the previous year. 

Data from China’s National Bureau of Statistics shows spending on garments jumped 19.5pc in April 

compared with the same time last year, and have grown at an average monthly rate of 21.6pc over 

the past 10 months. 
Source: China Textile Network Company 

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Meanwhile, AWI says the European and North American apparel market has matured and is unlikely 

to see any significant volume growth. 

Growth from 2000-2010 was attributed to production moving to Asia, which lowered garment prices 

and sparked growth. 

“There are now no major western apparel productions to move to Asia, and little likelihood in the 

next few decades of any more demand stimulation from falling prices,” the report said. 

“Subsequently, western markets will simply grow and fall in line with the economic cycle – which 

usually means up a bit one year and down a bit the next. 

“However many horror stories there might be about retail sales in Greece right now, clothing sales in 

Germany, France, the UK and northern Europe are likely to carry on just being flat, at least for the 

foreseeable future, therefore more or less ensuring a constant volume of orders.” 

The report said since 2011, substantial changes to the clothing market in Western Europe and North 

America had been expected and nearly all garment manufacturers were experiencing order 

shortages. 

But this was not solely because of falling consumer demand but rather that Asian garment 

producers raised their prices too fast, charging about 16pc more than the previous year while 

western consumers were prepared to pay only a 2-3pc increase. 

“The increased costs were primarily driven by increased raw material prices, wages rates, interest 

rates and energy costs,” the report said. 

“On top of all this, the Chinese and Indian domestic markets have slowed and most of the other 

emerging economies such as Brazil and Turkey have increased their protectionist barriers against 

imported clothing. 

AWI said US and western Europe’s clothing import values increased by 15pc and 17pc from 2010 to 

2011 but retail value only increased between 3-6pc. 

The average price of apparel imported into western Europe was higher. From China, it was up 

23.5pc, India 32pc, Bangladesh 27pc and Cambodia 24pc. In the US market, the average price of 

apparel imported was higher from China 8.2pc, India 16.3pc and Bangladesh 23.6pc. 

“With wool and cotton prices falling in late 2011, most sensible buyers anticipated that Asian 

suppliers would be cutting their prices to match in 2012. Naturally, buyers decided to wait and see 

what would happen,” the report said. 

Source: CNTEX 
Source: China Textile Network Company 

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Sharply-slowing Chinese textile exports worry industry 

DATE: 2012-06-06

New figures have showed that China's textile and garment exports slowed drastically in the first 

fourth months of this year as domestic companies worry about decreases in their market share 

overseas and inadequate support from consumption at home. 

The export value of textile and garments in the Jan.-April period stood at 71 billion U.S. dollars, just 

1.07 percent higher than a year ago, according to data released on Thursday by the China National 

Textile and Apparel Council (CNTAC). 

The growth rate witnessed a sharp decline from the 27.05-percent rise registered in the first fourth 

months in 2011, judging by customs data. 

Breaking the market down, exports of textile products grew only 0.15 percent to 30.73 billion U.S. 

dollars, while garment exports increased 1.77 percent to 40.27 billion U.S. dollars, the CNTAC data 

showed. 

"The slowing exports were directly caused by higher domestic cotton prices," said CNTAC 

spokesman Sun Huaibin. The domestic price of 328-type cotton stood at 18,853 yuan (about 2,974 

U.S. dollars) per tonne as of May 25, 5,460 yuan higher than its price in international markets. 

The continuing price gap has weakened the competence of the domestic textile industry, Sun said, 

adding the nation's textile exports will face an even worse situation if the gap fails to narrow in 

future. 

The spokesman said the disparity has also led to reduced market shares of Chinese textile and 

garment exports. 

Along with rising labor costs at home in recent years, Chinese textile and garment products in major 

markets such as the United States and Japan fell to 35.58 percent and 72.03 percent, respectively, 

in the first quarter of 2012, down 4.55 and 2.92 percentage points year on year, Sun noted. 

Meanwhile, according to the CNTAC data, China's textile exports to its third-largest trading partner, 

the Association of Southeast Asian Nations, grew only 2.69 percent in the Jan.-April period, 

representing a drastic fall of 59.66 percentage points year on year. 

The data also showed textile and garment imports by the United States, the EU and Japan dropped 

6.55 percent in the first quarter, which added to the worries of Zhong Daguang, general manager of 

a garment company based in southern China's Guangdong province, who said his company has 

been getting fewer orders since the start of the year. 

Li Jincai, president of the China Textile Construction and Planning Institute, said obstacles in foreign 

trade and lackluster domestic consumption are both having an impact on the status of the country's 

textile and garment industry, which supplied 32.71 percent of total exports worldwide in 2010. 

At home, the situation is no less worrying. The CNTAC data showed the sales revenues of 36,700 

surveyed textile companies hit 1,677 billion yuan in the first four months, up 13.11 percent; however, 

the growth rate plunged 17.43 percentage points year on year. 

Slowing growth in both exports and domestic sales revenues slashed the first-quarter profits of the 

surveyed companies to 53.7 billion yuan, down 1.77 percent year on year, the data suggested.

Source: CNTEX 
Source: China Textile Network Company 

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Ralph Lauren plans expansion in China 

DATE: 2012-06-06

American fashion brand Ralph Lauren Group is reportedly planning its expansion in China, and it 

expects to open 60 stores in the country over the next three years. 

According to its plan, the company will launch 15 stores in cities like Beijing, Shanghai, and Hong 

Kong before 2013. 

Ralph Lauren, American fashion designer and business executive best known for his Polo Ralph 

Lauren clothing brand, told local media the company believes China is a focus for their long-term 

development. Over the next few years, they will fully enter the Chinese market, open more stores, 

and improve their market share and brand awareness in this marketplace. 

Due to the economic effect in Europe, Ralph Lauren Group currently holds a conservative attitude 

towards their sales in the European market; however, they hope the Chinese market can make up 

their sales reduction in Europe. The group's financial statistics showed that during its fourth fiscal 

quarter ended March 31, 2012, the brand's net profit was USD94.4 million, and its net gain 

increased by 13.7% to USD1.43 billion. 

Source: CNTEX 

Continued fall in New York cotton futures, China market drag down spot rate 

DATE: 2012-06-06

Persisting decline in NY and China cotton futures pushed the spot rate lower by Rs 100 on the local 

cotton market on Monday, dealers said. Official spot rate drifted lower by Rs 100 to Rs 5,500, they 

added. In ready business, only one deal reported as 899 bales of cotton changed hands from Ali Pur 

at Rs 5700, they said. 

First session after the budget announcement was nearly listless as only one deals reported because 

of lack of buying interest, analysts said. They said that trading activity slowed down followed by 

reports of decline in the NY and Chinese cotton market. 

China, who is third in production as good consumer, facing a heap of unsold cotton stock, resulting 

prices dropped more by four percent on broad-based selling, they said. Not only local market, China, 

India and Bangladesh all have unsold stock, causing huge losses due to moribund economy of 

Spain, Greek and Turkey, unemployment and rising debt issues are increasing most parts of the 

world, they said. 

The other major reason is higher crop projection and lack of buying interest among leading 

importers of lint, notably China and some other countries. Locally, we can expect that prices may 

halt new erosion after decline and in the NY market, as well, the NY cotton has hit low at 68cents 

per lb from 2.27 dollars per lb some times ago, they said. 

According to a report, China's cotton futures slid nearly 4 percent to over two-year lows on Monday 

amid a broad-based sell-off in commodities as investors slashed positions in risky assets after weak 

US jobs data underscored concerns about the struggling global economy. The most-active January 

Zhengzhou cotton contract fell as low as 18,670 yuan a tonne, its lowest since September 2010. By 

0223 GMT, it was down 3.5 percent at 18,740 yuan. 

Source: CNTEX 
Source: China Textile Network Company 

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China to amend law on work safety 

DATE: 2012-06-05

China on Monday issued a draft proposal on the amendment to the work safety law in order to solicit 

public opinion. 

The draft, drawn up by China's State Administration of Work Safety and other related departments, 

has made further improvements on regulations, including strengthening supervision and carrying out 

work safety training activities. 

The draft also specifies the system for checking and accepting work safety conditions in dangerous 

industries such as mining exploitation and the storage of dangerous goods. 

An official with the Legislative Affairs Office of the State Council (LAOSC) said the law on work 

safety, formulated in 2002, should be amended and improved in the face of safety problems arising 

from changed situation. 

The law has played an important part in reinforcing work safety management, preventing and 

reducing accidents, and protecting people's lives and property, he said. 

The amendment to the law on work safety will provide further, more effective legal protection in 

accordance with China's present status, he added. 

The draft was published on the website of the LAOSC, chinalaw.gov.cn, and public opinion can be 

submitted via through letter or email before July 5. 

Source: Xinhua News Agency via CNTEX 

Armani to target China's middle class shoppers 

DATE: 2012-06-05

After long catering to China's richest shoppers, Giorgio Armani SpA is looking to the country's 

middle class to help carry the fashion house through potentially slowing growth in the luxury sector, 

reported The Wall Street Journal. 

Armani plans in the next three years to open 80 to 100 stores in China's mainland, adding to the 

Italian company's current 289 and pushing further into China's smaller cities, said Fabio Mancone, 

director of licensing and communications. 

New stores will include the company's namesake Giorgio Armani and outlets such as Armani 

Collezioni and Armani Jeans, which sell women's denims for 1,500 yuan, or $236, that are meant to 

be more accessible to China's ballooning middle class than the company's evening gowns, priced at 

25,000 yuan. 

"This is a company that is very accessible to a large number of Chinese people," Mr. Mancone said. 

"We have a wide offering that will continue to grow and protect us in case of a slowdown in China." 

Armani has been introducing more stores such as Armani Collezioni in China in recent years to 

appeal to the middle class. The company's sales rose 45% in 2011 from a year earlier, Mr. Mancone 

said, declining to offer further financial details. "It will be hard to beat that, but we can hope to match 

it," he said. 
Source: China Textile Network Company 

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Armani says it is also increasing its spending on marketing, boosting its ad campaigns and online 

efforts to play up the company's history, as many Chinese consumers are drawn to Italian brands. It 

splurged on a fashion event in Beijing on Thursday, bringing in international stars such as singers 

Tina Turner and Mary J. Blige and Chinese actor Fan Bingbing to draw attention to its fall and winter 

lines. 

Source: Style Sight via CNTEX 

China's cotton demand expected to rebound 

DATE: 2012-06-01

China's domestic cotton consumption is positive this year despite its economic slowdown, the Cotton 

Council International, the export promotion arm of the US National Cotton Council, has said. 

"We are very optimistic about China's retail market," said Karin Malmstrom, China director of CCI. 

"According to our surveys, we are seeing a growing middle class in China that is willing to pay more 

money for natural fibers, such as cotton." 

Cotton demand in China, the world largest user, may rebound this year. Consumption may rise to 

9.58 million metric tons this year from an estimated 9 million tons in 2011 amid a recovery in the 

textile industry, said the Hong Kong-listed Weiqiao Textile Co, China's biggest cotton textile 

manufacturer, on its website. 

Although cotton demand is rising, output of the fiber is not increasing. "In 2012, domestic cotton 

production is not optimistic as decreasing planting areas as well as increasing labor costs, low level 

of mechanization and narrowed production," said Zhou Shengtao, director of China Cotton 

Association. 

A recent cotton association survey concluded farmers are likely to reduce their planting area by 

almost 17 percent this year because of the rising costs of labor, fertilizer and seed. 

According to the International Cotton Advisory Committee, the area of cotton fields worldwide is 

expected to decrease by 7 percent to 33.6 million hectares in response to lower prices. The decline 

in the supply of raw cotton will be driven by China, which is expected to produce a 6.4 million ton 

cotton crop, 13 percent less than last year. 

But China still needs millions of tons of cotton to feed its mills, which produce 40 percent of the 

world's cotton goods. And with global prices cheaper than domestic and the domestic textile industry 

recovering, Chinese mills will be looking for more imports, industry analysts said. 

China's cotton imports may jump by 54 percent to 18.5 million 480-pound bales (4 million tons) this 

year, the most in the six years, according to a March estimate by the US Department of Agriculture. 

"China has huge domestic market demand. ... So its cotton industry should be based mainly on the 

domestic market and improvement of international competitiveness," said Zhou with CCA. 

"The appreciation of the yuan and rising labor and transportation costs have affected China's 

competitiveness in the global low-end textile market compared with India and Bangladesh," said 

Weiqiao Textile said on its website. "We are trying to boost sales in the domestic market and also 

upgrade our goods to better compete in the high-end market." 

Source: China Daily via CNTEX