2005 Review of China's Dyeing and Printing Sector




With the rapid growth of the economy, the dyeing and printing
sector in China developed considerably in 2005 in product
quality, production management and technical level. Major
features included drastic output increase, considerable profit
growth, import reduction and export expansion.


1. Rapid output increase of dyed and printed fabrics


Data from the National Bureau of Statistics of China show that
the output of dyed/printed fabrics in dyeing/printing
enterprises with a considerable scale reached 36.215 billion
meters in 2005, an increase of 15.69% over 2004. The output in
Zhejiang, Jiangsu, Guangdong, Shandong and Fujian provinces
located in the east and the south of China accounted for 89.89%
of the national total.


2. Further growth in economic performance


According to data from the National Bureau of Statistics of China,
there were 1 778 dyeing and printing enterprises in China in 2005,
an increase of 25.48% over the previous year. The total
industrial output value (current price) was RMB139.710 billion,
an increase of 19.76%. The sales revenue was RMB134.571 billion,
an increase of 19.45%. The production/marketing ratio was 97.85%.
The export value of delivered goods was RMB45.782 billion, an
increase of 12.12%. The proportion of the domestic sales value
in the total sales value was 66.51%.
   Sales expenses, administrative expenses and financial
expenses in dyeing and printing enterprises accounted for 5.73%
of the sales revenue in 2005, being 0.13 percentage points higher
than the previous year. In spite of this, the profit was RMB4.145
billion, an increase of 35.13%. The sales profit rate was 3.08%,
being 0.38 percentage points higher than the previous year. The
cost profit rate was 3.18%, being 2.82 percentage points higher.
The added value of dyed and printed products therefore increased
constantly and the profit-earning level had an upgrading.


3. Outstanding contribution of non-state economy


Data from the National Bureau of Statistics of China show that
enterprises in non-state economy with a considerable scale
accounted for 95.95% of the total enterprises with a
considerable scale at the end of 2005. The proportion of the
sales revenue in non-state economy increased to 94.56% and the
proportion of the export value of delivered goods was 91.32%.
The profit in the entire dyeing and printing sector was
contributed by the companies that are not controlled by the state.
State-owned and state-controlled enterprises suffered further
loss and had constant dwindling.


4. Growth slowdown in import and export


The total import and export value of the 6 main categories of
dyed/printed products (pure cotton dyed fabrics, pure cotton
printed fabrics, cotton blend dyed fabrics, cotton blend printed
fabrics, synthetic filament fabrics and polyester fiber/cotton
blend fabrics) was US$12.003 billion in 2005, an increase of
7.10% over the previous year and the growth was 13.33 percentage
points lower than that in 2004. The favorable balance was
US$4.965 billion, an increase of 25.16% over the previous year
and the growth was 37.29 percentage points lower. The growth of
the favorable balance was on the decrease in the past three
years.


    (1) Reduction in import amount and increase in import price


The import amount of the 6 main categories of dyed and printed
products was 2.977 billion meters in 2005, a drop of 8.23% from
the previous year. The import value was US$3.519 billion, a drop
of 2.79%. The average import price was US$1.18 per meter, an
increase of 5.36%. The import price rose constantly for 4
consecutive years from US$0.96 per meter in 2002 to US$1.03 per
meter in 2003 and further to US$1.12 per meter in 2004.


    (2) Concentration of import sources


According to customs statistics, major import sources of the 6
main categories of dyed and printed products included Taiwan
province, Korea, Chinese mainland (place of origin), Hong Kong
and Japan in 2005. The import amount from these countries and
regions was 2.810 billion meters, accounting for 94.40% of the
total and the import value was US$3.276 billion, accounting for
93.09%. The average import price was US$2.94 per meter for Japan
and US$1.14 per meter for Korea. The average import price for
Taiwan province was US$0.74 per meter.


    (3) Further increase in export and two-digit drop in export
growth


The export amount of the 6 main categories of dyed and printed
products was 10.375 billion meters in 2005, an increase of 11.48%
over the previous year and the growth was 11.34 percentage points
lower than that in 2004. The export value was US$8.484 billion,
an increase of 11.82% and the growth was 17.34 percentage points
lower. The average export price was US$0.82 per meter. The export
price rose from US$0.72 per meter in 2002 to US$0.78 per meter
in 2003 and US$0.82 per meter in 2004.


    (4) Top 10 export destinations based on Hong Kong and the
Middle East with America and Africa following behind


In the top 10 export destinations of dyed and printed products
from Chinese Mainland in 2005, Hong Kong was the largest region,
the United Arab Emirates (UAE)was the second largest region and
Iran, Benin, Bangladesh, the USA, Pakistan, Togo, Vietnam and
Ghana followed behind. The export amount to these countries and
regions was 3.798 billion meters, accounting for 36.61% of the
total and the export value was US$3.354 billion, accounting for
39.53% of the total. The highest export price was in Vietnam,
being US$1.32 per meter and the lowest export price was in the
UAE, the USA and Pakistan, being US$0.75 per ton.


5. Problems in economic functioning


   (1) The export growth of dyed and printed fabrics was slowed
down. The growth in the export amount of the 6 main categories
of dyed and printed products in 2005 was 23.48% in the first
quarter, 15.69% in the second quarter, 15.15% in the third
quarter and 11.48% in the whole year, presenting a declining
trend. Reasons for the growth slowdown included the impact from
the international trade situation and the need for the further
upgrading of product quality and grade.
   (2) Enterprises have weak innovation ability and lack
intellectual property right and original brands. They are
therefore at the low end in the international distribution of
industrial interests and the profit space is quite narrow.
   (3) The rate for the transformation of research achievements
is low. There is some divorce between research achievements and
industrial developments. The dyeing and printing sector is
unable to make effective use of increasing research achievements
to achieve its own renovation.
   (4) Due to the implementation of the tight money policy,
enterprises have a deficit of circulating funds and a hard time
for financing. The development of medium and small enterprises
and private economy is therefore affected.
   (5) The conversion rate readjustment and the textile export
tariff imposition have produced very negative impacts on dyeing
and printing enterprises.
   The development of the dyeing and printing sector in China
is more and more seriously restricted by resource bottleneck and
environmental vol