Garment and textile exports are expected to reach US$65 billion by 2005.

Science and technology are expected to contribute more than 60 percent of the growth in output value, and energy consumption per 10,000 yuan (US$1,205) in output value will be brought down by 15 percent.

Du Yuzhou, the director of the State Textile Industry Bureau, said to fulfill the target, China will adjust industrial structure in the coming five years.

By the year 2005, the proportion of combed yarn will increase from 16 percent to 35 percent, that of knotless yarn from 28 percent to 50 percent, Du said.

Meanwhile the country will optimize the export products mix by increasing high-added value products and expanding the proportion of chemical fabrics and decorative and industrial textiles.

"The industry will also speed up reform of State firms and make regional structural adjustments," said Du.

Several textile conglomerates are to be established through capital reorganization.

Large State-owned textile enterprises with backward equipment and redundant employees, which have no chance of getting out of the red, should be phased out.

Medium-sized and small textile firms can strengthen cooperation with private and foreign firms through auction or transfer of shares.

According to Du, textile firms in coastal cities will focus on production of brand name products and exports, while those in interior areas will be production bases for products for domestic sale or with ethnical flavor.

Textile enterprises in western regions are being encouraged to invite foreign investment to speed up their development.

Boosted by a recovery of the world market and the government policy of encouraging exports, China's textile and garment exports hit US$47.7 billion from January to November last year, exceeding the total of exports in 1999.

However, industry experts pointed out that the lack of value-added textile products and design ability will hamper the sector's growth and increase in exports in the long run.

A modern enterprise system with efficient management is needed for most textile enterprises, State-owned enterprises in particular.

But the continuous favorable turn of the market may stimulate enterprises to expand short-term production capacity blindly.

The strategy of low-price competition carried out by neighboring countries has reduced the competitiveness of China's textiles in the world market.

"But with the strengthening of the country's macro controls and adjustments, the textile industry will be in an optimistic situation in the new year," said Du.

(China Daily 02/03/2001)