During China's WTO talks with developed nations, it stressed that these rates would have to come down, especially on cotton and synthetic fibres, polyester, and certain manufactured garments. The country's tariff rates on such imports would be slashed from the current level of almost 30 per cent. This would result in reduced costs for some textile manufacturers, but the likely sacrifice of a few mainland companies producing synthetic material, as well as printing and dyeing factories. China's large garment manufacturers and ocean shipping lines would be the major beneficiaries of such a move. In Europe, Turkey's entry into the EU also challenges China's market share.
Turkey is the European powerhouse in terms of textiles and garment manufacturing.
To counter the adverse effects, textile experts are urging China's top enterprises to establish factories in the free trade zones of foreign countries, and produce goods with materials imported from China. Chinese enterprises and textile authorities are taking the advice seriously as a long-term strategy. Thus, more cotton, silk, wool and synthetic fibre will be moved out of the Chinese mainland, mostly by sea, to North and South America, Eastern Europe, Africa and Southeast Asia, in the latter half of the decade. Mainland manufacturers from Shanghai and Shenzhen with A-share listings on the stock exchange will stay at the cutting edge of the industry. These companies include Younger, Shanshan, Meyer and Three Guns.