As a large producer and exporter of leather products, China now transports an average of over US$10 billion worth of leather products annually compared with only US$1 billion a decade ago.

Various Chinese leather products make up about 9 per cent of the world's total exports and exports of Chinese leather shoes now account for 15 per cent all of those sold, according to the China Leather Industry Association.

The local leather industry performed well last year and is expected to maintain rapid growth over the next few years.

According to statistics from the former State Economic and Trade Commission, the gross industrial output value of the industry's major enterprises, those with an annual sales volume exceeding 5 million yuan (US$604,600), hit 150.73 billion yuan (US$18.23 billion) last year.

The export volume of major leather products was valued at over US$18 billion last year, ranking it first among all light industrial products.

Leather processing is a traditional Chinese industry, which has witnessed development from simple workshops to an industrialized system.

The world industry has entered a new development period since the 1990s. With the adjustment of the global industrial structure, leather processing -- which is regarded as a labor-intensive industry -- has shifted its processing bases from advanced countries to developing ones.

Despite China becoming a global leather processing and marketing center, it must further improve its industry structure to keep its lead and market share in the world, experts warn.

At present, about 97 per cent of leather processing enterprises in the country are small and medium sized, and those with small production capacities are finding it hard to survive.

The long distance between the raw materials and processing centers is another factor hindering progress, experts say.

In China, raw materials mainly come from central and western areas. However, over 70 per cent of the leather processing businesses are in eastern and coastal areas of southern China.

(China Daily May 23, 2003)