Tuesday, December 18, 2007

Learn Mandarin online - 10th Five-Year Plan

BIZCHINA / Light Industry

10th Five-Year Plan

Updated: 2006-04-18 14:59

Apparel: Emphasize the development of brand apparel, children's apparel,
garments for middle and old-aged people and special garments; research
and development of ecological, health-care garments; development of
garments suitable for rural consumption to adapt garment making to the
multi-layered consumption demands of the domestic market, and expand
exports.

2. Adjustment of the Organizational Structure
The adjustment will help form many large enterprises and enterprise
groups, which will possess their own well-known brands, independent
intellectual property rights and outstanding main-business and
strong-core competence. By 2005, the number of enterprises with an output
of over 100,000 tons in the chemical fiber industry will increase from
seven to about 20. The rate of production concentration will reach 60
percent. The development of non-State-owned enterprises, private,
individual and foreign-invested companies will be encouraged.

The development of small and medium-sized enterprises that can provide
services for the textiles industry and society will also be encouraged.
To motivate the development of the urban textile industry,
labor-intensive industries, such as garment making, knitting and
wool-knitting processing, will be promoted by relying on large-scale
markets. The country will encourage the development of and provide
support to small and medium-sized scientific and technological
enterprises that can provide technology, design and information services
to make them an important part of the technological progress of the
textiles industry.

3. Adjustment of Regional Structure

The move will help make full use of the regional comparative advantages.
China will encourage cross-regional, cross-industrial and
cross-ownership-type unifications with eastern and western regions to
achieve mutual development via advantage complements.

4. The acceleration of the adjustment of the State-owned economic pattern
and the enhancement of the strategic reorganization of the State-owned
enterprises.

5. The promotion of information construction: The country will increase
the overall competitiveness of its industry through information
construction and application of information technology; conditions will
be made to give full play to the industrial advantages to help the
textile industry realize a booming development.

Development review of the textile industry

In 2000, there were 18,900 textile enterprises, including State-owned
enterprises and non-State-owned enterprises with a respective annual
sales revenue of over 5 million yuan. Total assets were 977.3 billion
yuan and the industrial added value was 267.8 billion yuan, accounting
for 11.9, 8.3 and 11.3 percent of the figures from the nation's total
large-scale enterprises.

The total number of employees in the industry was 13 million; total
profit tax was 57.88 billion yuan; total volume of processed textile
fibers, 12.1 million tons; fiber consumption per capita, 6.6 kilograms;
yarn output, 6.575 million tons; chemical fiber output, 6.942 million
tons; garments output, 16.5 billion pieces. The output of yarn, fabric,
wool fabric, silk products, chemical fibers and garments all ranked
number one in the world, which made China the largest
textile-garment-producing nation.

China's textile apparel exports amounted to US$52.08 billion in 2000,
accounting for 20.9 percent of China's total exports and about 13 percent
of the total volume of the world's textiles apparel trade. During the
Ninth Five-Year Plan period (1995-2000), China's accumulative textile
apparel exports numbered US$221.5 billion; its net foreign-exchange
income was US$170 billion, which made the textile industry the major
industry of foreign-exchange earnings.

In 2000 State-owned enterprise and State-owned holdings company assets
were 452.2 billion yuan, accounting for 46.3 percent of total industry
assets. But the industrial-increased value of all State-owned enterprises
only accounted for 29.8 percent of the entire textile industry; profits
only accounted for 23.1 percent of the industry. The rate of State-owned
enterprises that made a loss was 31 percent -- 10 percent more than the
industry average.

During the Ninth Five Year Plan period, the textile industry had
basically achieved its main goals through structural adjustment, which
was undertaken with initial success.

The task of reversing the difficult situation of the State-owned
enterprises was basically complete. In 1997, the Central Economic Working
Conference proposed three major tasks to decrease spindles, downsize
enterprises and turn losses into profits for the textiles industry. By
the end of 2000, the accumulative cut of cotton-spinning capacity was 9.4
million spindles, the decrease of wool-spinning capacity was 280,000
spindles and the decreased silk-reeling capacity was one million thread
ends.

Reducing total capacity, the textile industry combined the reduction of
spindles, structural adjustment and re-organization of assets. It made
full use of the policies regarding company mergers and bankruptcy and the
policy regarding debt-into-shares to implement the strategic adjustment
of the textile industry.

The level of processing technology and equipment has been increased
remarkably. During the Ninth Five Year Plan period, through technological
innovation and the implementation of basic construction projects, the
production capacity of chemical fibers jumped over three million tons and
the differentiation rate was also greatly boosted.

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