China's textile success - can we share it?

Abstract

China has rapidly become the world's largest producer of textile products. Thanks to large investments, China today has the most modern textile plants, and the textile sector in that country, mostly privately owned, has accumulated considerable wealth. China admits that its share of the total added value is very low, only 20 % on average, while the rest is created by companies that have brands in the EU and the US. The eleventh five-year plan for the Chinese textile industry emphasizes further growth, but also a change from the production of cheap clothes to technical and branded products, i.e. those that provide greater added value. China's success in the field of textiles is largely due to partnerships with foreign companies, so the Chinese government continues to encourage foreign direct investment, especially for brand creation. Around 10000 joint ventures show that there is a lot of interest in China in the industrial world. The domestic market in China is expected to grow rapidly in the near future, which will open up new opportunities for foreign products and brands. Several examples of Finnish companies, presented in this paper, show that we could share China's success in textiles, especially through partnership and investment. Globalization means a chance, if you join it, and a threat, if you stay at home.