GENEVA -- China's problematic and sheltered state-ownedenterprisesin the textiles sector, and other light industries, will be forced to shed millions of jobs, as the country lowers import barriers and slashes industrial subsidies as part of its...
GENEVA--China's problematic and sheltered state-ownedenterprisesin the textiles sector, and other light industries, will be forced to shed millions of jobs, as the country lowers import barriers and slashes industrial subsidies as part of its mandatory obligations for membership to the World Trade Organization, which itjoined in December 2001, according to a recently released U.N. report.China's reliance on low tech, labor intensive plants in the textile sector, could make its textile industry vulnerable to the high tech plant of some of its more industrialized neighbors, the report said.The report said Chinese state-owned industries--like textiles, which employs 5.8 million--are "particularly vulnerable" and argued the dismantling of support measured over a 10-year period is likely to have serious repercussions for the state-assisted sector.The study by the U.N. Conference on Trade and Development pointed out that state-owned ventures in China, which included over 3,000 out of a total of 10,981 companies in the textiles sector at the end of 1999, are characterized by"excessive employment, high inventory levels, low productivity, low capacity utilization, inefficient scales of production and outdated technology."The stated-owned textiles sector in 1999 accounted for 6 percent of China's industrial output and 14 percent of its industrial workforce, it said.In contrast to the tough times ahead for government-owned firms in textiles,UNCTAD's "Trade and Development Report for 2002" noted thatChinesestate-owned ventures in clothing, which in 1999 only numbered about 792 out of 6,611 total companies in the sector, are profitable and account only for a small share of sales.On the plus side, UNCTAD trade economists argued that the removal of subsidies and the reduction of tariffs and hidden barriers, along with the elimination of preferential treatment "will, no doubt, exert considerable pressure on these enterprises to improve efficiency and competitiveness."But the report projected that as China opens up its textiles sector to international competition its state-owned mills will not lose business to labor-intensive textile suppliers in South Asia and South East Asia butrather capital-intensive, high tech textiles producers based in Japan, Taiwan and South Korea.Already Taiwan accounts for about 25 percent of China's textile imports. Korea and Japan account for about 20 percent each.The U.N. review said the shift to capital-intensive methods, mainly robotization, has given advanced economies in the region an edge over China and other labor intensive and low quality suppliers.In addition, the report asserts that the liberalization of the clothing sector in China will also affect the competitiveness of the textiles sector."Liberalization of the clothing imports could shift domestic demand in favor of high-quality clothing," it said. It projected that in the short to medium term, the opening of China's market that should result from WTO membership "could favor rapid growth in imports of textiles."Over 55 percent ofChina's exported apparel is made from imported fabric, according to the report.
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim
“I genuinely fell in love with water, I fell in love with Fiji, I fell in love with the whole life that we lived for those few months,” says @mrsamclaflin of filming for his new movie “Adrift” with @shailenewoodley. The 31-year-old actor spoke with WWD about his upcoming projects, meeting Jamie Dornan and working with co-star Woodley. #wwdeye (📷: @jamstoker)
3 years ago, fans of the late singer Aaliyah started calling for a collaboration with @maccosmetics. With the strength of social media — including mock ups of products — 25,000 people signed a Change.org petition for a limited-edition collection, and MAC couldn’t ignore the buzz. Tomorrow, MAC will unveil MAC x Aaliyah, a tribute to the singer who passed away nearly 17 years ago. Head to our stories to preview the new collection, which was worked on by Aaliyah’s family and inspired directly by her makeup bag. #wwdbeauty
Artistic director @clarewaightkeller will be dedicating @givenchyofficial’s fall 2018 couture show in Paris on July 1 to house founder Hubert de Givenchy, who passed away in March at age 91. Givenchy said the collection would be “an homage to his iconic creations, technique, and personal lexicon” and a “celebration of his timeless elegance and grace.” Head to WWD.com to read more. #wwdfashion (📷: Delphine Achard)