China India (Nepal) Textile Industry Uses Their Respective Advantages To Create A Win-Win Situation In Competition.

Two years ago, the establishment of China ASEAN free trade area was for China and Indonesia.

Trade opens up new opportunities for development.

Today, when the global textile industry is facing the common challenges of weak consumption and tight resources, how to strengthen inter industry cooperation on the platform of trade liberalization has become an urgent problem for Indonesian manufacturers and Chinese businesses.

At the end of September, at the Nanjing international fashion consumer fair, Lin Guomin, vice chairman of the Indonesia Textile Association, was exhausted.

On the four day of the exhibition, on the one hand, he hoped to get acquainted with Chinese textile and garment enterprises interested in investing in India. On the other hand, he also tried to recommend Indonesia's cotton yarn products to the industry.

In an exclusive interview with reporters, Lin stressed again and again that despite the competitive relationship between China and India textile industry, the two countries could cooperate to seek common development.

In the recession of the main target market, only by borrowing from each other can we achieve a win-win situation in the changing pattern of supply and demand in the textile industry.

Reporter: how many times have you visited Indonesia on behalf of the Textile Association of China? What do you hope to achieve?

Lin Guomin: This is my first visit to China under the invitation of the China Textiles Import and Export Chamber of Commerce.

At present, many Indonesian entrepreneurs are not familiar with the Chinese market, and only a few have been to Shanghai, Nanning and other provinces and cities.

With the help of the platform of Nanjing International Fashion Fair, I hope to introduce Indonesia's high quality cotton yarn products to Chinese enterprises, and also hope to get a deeper understanding of China's consumer market.

Our identity is only a visitor this year. Next year, we are likely to organize the Indonesian textile company 3~4 as an exhibitor.

Reporter: due to the weak market economy in Europe and the United States, the export orders of the major textile and garment manufacturing countries are continuously decreasing. How do you view the future market situation?

Lin nationals: the growth trend of global textile and clothing trade is still continuing. Although the economic slump sometimes decreases, overall, the trade growth momentum has not changed.

From the perspective of supply and demand, every year there will be changes.

The world's leading importers of textiles and clothing are still concentrated in the European Union, the United States and Japan.

In the past two years, China's position in Hongkong has also gradually improved because it is an important pit point for ASEAN's textile trade.

In the textile and clothing supply countries, India and Turkey became the top five suppliers in 2010, and now Korea has entered the second tier. Indonesia is among the top 20 suppliers.

Because of the poor economic situation in Europe and America, Indonesia's textile and clothing exports have declined since the beginning of this year.

However, I do not think this situation will last too long because consumers' demand for textile and clothing products will not be greatly reduced.

We are now optimistic about Africa and South America, where the per capita income is increasing, and we hope to expand these emerging markets.

In addition, we are also actively promoting the establishment of a free trade area with the European Union, hoping to strengthen our export of textiles and clothing to Europe.

Reporter: as China's labor costs continue to rise, some European and American buyers pfer orders to Indonesia and other low cost countries.

How do you evaluate the competitive relationship between China and Indonesia's textile industry?

Lin Guomin: Although we have undertaken some orders pferred from China, there is still a big gap between Indonesia and China's textile and clothing products.

In the global market, China has a market share of 30%, but Indonesia's market share is only 2%.

In some important textile importing countries, for example, in the European market in 2011, the share of Chinese products reached 22.1%, but Indonesia accounted for only 1%. In the US, China accounted for 39%, while Indonesia accounted for only 5.2%; in the Japanese market, China's export share reached 74.7%, while Indonesia only had 2.6%.

It is undeniable that the textile and garment industry is a very dynamic industry in Global trade.

The industry is an important driving force for economic growth in developing countries, as is Indonesia and China.

At present, China is far ahead of Indonesia in terms of product technology and R & D.

In order to enhance its competitiveness in the international market, Indonesia should now focus on developing the textile and garment industry.

In fact, we are not only strengthening exports to the traditional market, but also promoting trade with China's textile and clothing industry.

Over the past three years, the textile and garment trade between China and Indonesia has continued to grow. In terms of yarn, Indonesia achieved a trade surplus in 2009 and 2010.

Indonesia is still in deficit in the majority of its products.

At present, Chinese products account for 27% of the Indonesian market, but some Indonesian products account for only 1% of the Chinese market.

China and Indonesia

There are not only competitive relations, but also many opportunities for cooperation.

I hope that textile enterprises in China and Indonesia can take advantage of the ASEAN Free Trade Area to jointly promote trade and trade between the two countries.

The two countries can supply each other on linen textiles and cotton raw materials.

In addition to trade, what I am looking forward to is a mutually beneficial cooperation between the two countries, especially the Chinese textile industry's investment in Indonesia.

Reporter: what are the attractions and advantages of Indonesia for Chinese enterprises interested in investing in Indonesia?

Lin Guomin: first of all, our domestic market has great potential, with a population of 240 million people, with an annual consumption volume of US $9 billion.

Secondly, compared with other Asian countries, our labor resources are abundant and cost increases are not large.

In Jakarta, the average monthly salary of workers is 120 dollars, which is 100 dollars / month in Central Java.

Some Southeast Asian countries, though low cost, have a small population. If the number of investment enterprises increases, employment will be scarce, and the corresponding labor costs will also increase.

In the short term, Indonesia's textile industry will not have such problems.

In addition, Indonesia is rich in resources and is relatively cost-effective for long-term investment.

If Chinese enterprises invest, the government will provide convenience as far as possible.

We can set up special trade zones for Chinese enterprises to facilitate their collective investment.

But we have to admit that our infrastructure is still relatively weak, which may be the area we need to strengthen in the future.

Reporter: in your opinion, where should China's textile and garment enterprises develop in Indonesia?

Lin nationals: Indonesia's textile and garment industry is not only limited to garment production, we also have man-made fibers and knitted fabrics.

In Asia, Indonesia has a sizeable yarn factory.

There is great room for investment in these areas.

From the point of view of import and export trade, we are more dependent on textile machinery.

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As textile machinery and equipment are lagging behind and aging is serious, the government has introduced a number of measures to improve the level of textile machinery and equipment.

According to the preferential regulations of the Indonesian government in importing textile machinery, as long as 80% of the equipment is produced in China and the 20% is assembled in Indonesia, the relevant preferential treatment can be enjoyed. China's textile machinery products can give full play to its output advantages.