China's textile industry suggests to set up a "Going out" fund

China Chamber of Commerce for Import & Export of Textiles has filed a proposal to the Ministry of Commerce, urging the government to set up a "Going out" fund which aims at encouraging domestic textile mills to tap overseas markets and to establish production lines outside China.

With the fund providing capital for further investment, it is hoped that the Chinese textile industry can enhance its competitiveness so that it can meet the challenges brought by such negative factors as safeguard, international trade barriers, and Renminbi re-valuation.

The number of textile exporters in China has increased from 6,000 in 2004 to 20,000 in the post-quota time, statistics reveal.

However, market observers point out that some less competitive small- and medium-scale enterprises have already been closed down due to the unfavorable factors and more of them may not sustain the busines if they are not integrated into large enterprises.

Textile.2456.com