Navigating sustainable change to 2020 SAMPLE › images › samples › ChinaTextile-Sourcin… ·...
Transcript of Navigating sustainable change to 2020 SAMPLE › images › samples › ChinaTextile-Sourcin… ·...
CHINATEXTILE SOURCING
An Essential Guide for Brands and Retailers NEWS & MEDIA
Navigating sustainable change to 2020
SAMPLE
www.mclnews.com
Innovative | Intelligent | Influential
The leading media platform for the global textile supply chain
The Environmental Magazine For The Global Textile Supply Chain
I s sue No: 74 � August / September 2016
ECOTEXTILENothing to see here
MRSLs are not the only answer
Take-back togetherRetailers partner
to recycle
Brits vote BrexitUncertainty on
UK chemical rules
Cotton in contextStill the biggest impact
on the environment
Published by Technical Innovation and Industry Best PracticePublished by
August / Septem
ber2016
SUSTAINABLE NONWOVENS
Cottoning onNew treatments for
cotton-based nonwovens
Flushability in practicePractical tests on wipes dispersion
Filtration focus Sophisticated nonwovens
in engine filtration
Driving changeAutomotive interiorsbenefit from lowweight nonwovens
THE NEW VOICE OF TEXTILE INNOVATION
Published by
September-October�2016 Issue�3
BREXIT BACKLASHThe outdoor industry reactsto Referendum implications
TEXTILE FRONTIERSNews from the latest textileresearch papers and patents
Countries stricken with Zika exploresynthetic insecticide textile finishes
“A GLOBAL EPIDEMIC”
SAMPLE
China Textile Sourcing Guide | 1
China Textile Sourcing
Published by
By Brett Mathews
The leading publisher of B2B magazines and reports for the global textile industry
CHINATEXTILE SOURCING GUIDE
P1�China�Title_Layout�1��05-Sep-16��4:17�PM��Page�1
SAMPLE
2 | China Textile Sourcing Guide 2016
MCL News & MediaHallcroft House Castleford Road NormantonWest YorkshireWF6 2DWUK
[email protected]: +44 1977 708488
MCL News & Media also publishes:
Closing the LoopCotton HorizonsDetox DeconstructedEco-CompositesEcotextile NewsEco-Textile Labelling GuideGreen Guide to ITMAInsider’s Guide to Cotton and SustainabilityKnitting Trade JournalSustainable NonwovensT- EVO - Textile Evolution
Copyright © 2016 MCL News & Media.
All Rights Reserved. Material in this publicationmay not be reproduced in any form withoutwritten permission of the publisher.
Desk editor: Stacey Dove
Designed and produced by:• MCL News & Media• G Gibson Creative Designwww.ggibsoncreativedesign.co.uk
Printed on Revive 50 Silk. FSC® certified 50% recycled paper.
P2�Publisher�Info_Layout�1��05-Sep-16��4:18�PM��Page�2
SAMPLE
China Textile Sourcing Guide 2016 | 3
Foreword
In the year 2000, China’s share of global exports fortextile and clothing was 15 per cent. Since then, thecountry has more than doubled that share and,according to World Trade Organisation statistics,China now commands around 35 per cent of theglobal market for textile and clothing exports.
This is a remarkable economic success story, whichhas helped to create jobs for millions of Chinesepeople. It is no surprise that other Asian countriesare now looking to replicate China’s story, as textilesand apparel manufacture is a relatively easy industrysector to enter, the only real criteria being an abilityto manufacture and ship clothing quickly – andcheaply. Myanmar, Vietnam, Cambodia are amongthose countries which are looking to follow inChina’s footsteps, with varying degrees of success.
In the meantime, as this report will show, China islooking to tread a slightly different path. Thecountry’s leaders have, for many years, hadaspirations to take the Chinese economy to its nextstage of development: that is, to move away frombeing a low cost, low added value manufacturerwhich wins market share primarily by competing onprice. Closer cooperation with more sophisticatedindustrial economies such as Germany, the USAand Japan are key priorities of the Chinesegovernment moving forwards.
Clear evidence of this new strategy could be seenin Made in China 2025, the 2016 published Chinesegovernment initiative which sets out how Chinaintends to comprehensively upgrade its industrialbase. The plan was drafted by the Chinese Ministryof Industry and Information Technology (MIIT) overtwo and a half years, with input from 150 expertsfrom the China Academy of Engineering. Its guidingprinciples are to have manufacturing in China beinnovation-driven, emphasise quality over quantity,achieve green development, optimise the structureof Chinese industry, and nurture human talent.
So what does all of this mean for China’s textileindustry? Our report draws several conclusionson this issue. Firstly, we are likely to see aslowdown in the rate of growth of the textileindustry in China; indeed, output may actuallydecline in the coming years, although there arefactors beyond and outside China which couldinfluence this (the TPP free trade agreement toname just one).
We expect to see a more sophisticated textileindustry in China. Industrial upgrading is alreadyunderway in the country’s textile industry, andwe expect this process to continue. In terms ofautomation, China’s textile industry has madesignficant progress, much more so than itscompetitors, enabling it to manufacture textileproducts faster and more efficiently than itscompetitors - thereby offsetting rising wages inChina which have seen it lose market share tolower cost rivals.
The most encouraging change in China is onsustainability issues. While the country doubtlessstill has a long way to go to clean up its textileindustry, there is now genuine evidence that thegovernment is serious about tackling environ-mental and sustainability concerns related totextile manufacture. Fines have beenimplemented and are being enforced forpolluting textile mills. Less reputable operatorsare being forced to clean up their act or risklosing business. Western brands are demandinggreater compliance within their Chinese supplychains, a process being aided by the laudablework of the Institute of Public and EnvironmentalAffairs which made an invaluable contribution tothe writing and research of this report. Thanks tothe work of the IPE and other like-minded NGOs,there is no longer any hiding place for textilemills that wantonly damage the environment inChina. That can surely be no bad thing.
Foreword
P3��Foreword_Layout�1��05-Sep-16��4:19�PM��Page�3
SAMPLE
China Textile Sourcing Guide 2016 | 15
China textile industry statistics
Managed slowdown forChina textile industryChina is responsible for more than a third of all textiles produced worldwide,while a staggering 80 per cent of all man-made fibres are delivered from China– a country with more than 100,000 textile factories. However, the rate oftextile production is likely to fall steadily in China in future, as the country putsmore focus on niche, high value manufacturing, while other Chinese investorslook to other, cheaper overseas manufacturing textile locations.
China's textile exports fell for the first time in sixyears in 2015, with the fall being due to a numberof factors including the stagnant economies ofexport destinations, rising labour costs in Chinaand an increase in overseas investment byChinese textile businesses, with investors fromChina increasingly heading into fast growingtextile hubs such as Vietnam and Myanmar.
Textile exportsThe level of the drop was significant, with China'stextile exports falling by 5 per cent to US$286.8billion in 2015. Chinese textile exports to Europe,traditionally the country's largest exportdestination, were down 9 per cent in 2015.
The reduction in 2015 followed many years inwhich textile exports had been growing rapidly,often in double-digit figures (the only exception tothis being 2009 when China struggled – like alltextile exporters – in the wake of the globalfinancial crisis). In the first two months of 2016,China’s textile exports dropped 16 per cent on thecorresponding period for 2015, indicating that thefall off in 2015 was no anomoly.
It is worth here giving some broader context: in2010, China’s market share of EU textiles andclothing imports stood at 40.8 per cent; this hadfallen to 35 per cent by 2015.Undeniably, the main beneficiary of the fall-off inChina exports was the South Asian Association
for Regional Cooperation (SAARC) zone which hasgone in the opposite direction to China since2010. From 19 per cent in 2010, its market shareof textiles and clothing exports in 2015 was 24.6per cent. Significant textile exporters in this zoneinclude Bangladesh – the largest and fastestgrowing of these – Sri Lanka, India and Pakistan.
ASEAN marketsAssociation of Southeast Asian Nations (ASEAN)member states – which include the major textileexporters Cambodia, Indonesia, Myanmar, thePhilippines, Thailand and Vietnam among theirranks – also grew their share of textile andclothing imports from 6 per cent in 2010 to 8.6 percent in 2015. Vietnam, the fastest growing textilemanufacturing destination in the world at the timeof writing, was the main reason for this increase.
In terms of actual products, China prevailed as themain supplier of woven garment exports to theEU. However, its share continued to decline at37.6 per cent to the benefit of South Asiancountries whose shares rose.
In terms of the US market, in 2015 China was byfar the largest exporter of textile products to theUS market according to US trade figures. Figuresfrom the Office of Textiles and Apparel in the USshowed that in 2015, China exported more than30.8 billion square metres of textiles to the US,an increase of 8 per cent on 2014. The next
Chapt�2�Textile�trade�stats_JM_Layout�1��05-Sep-16��5:36�PM��Page�3
SAMPLE
China Textile Sourcing Guide 2016 | 19
Date Value % change on previous year
June 2016 9,114,298 -3.7
May 2016 10,205,035 1.7
April 2016 9,663,425 2.6
March 2016 7,922,822 34.9
February 2016 6,083,063 -27.5
Janaury 2016 9,449,970 -2.7
December 2015 9,793,262 0.4
November 2015 8,662,775 -9.2
October 2015 9,206,775 -5.5
September 2015 9,703,276 -0.4
August 2015 9,741,003 -2.1
July 2015 9,514,550 -5.8
June 2015 9,468,196 +2.3
May 2015 10,045,183 -3.9
April 2015 9,419,802 -10.7
March 2015 5,875,307 -29
February 2015 8,397,137 99.3
January 2015 9,716,866 -7.7
December 2014 9,753,874 4.9
November 2014 9,546,311 5.3
October 2014 9,746,769 5.8
September 2014 9,751,998 5
August 2014 9,963,662 4.7
July 2014 10,107,085 4.4
June 2014 9,259,758 4.2
May 2014 10,457,685 5.1
April 2014 10,556,010 4.3
March 2014 8,283,523 2.1
February 2014 4,216,633 -2.1
January 2014 10,537,294 14.8
December 2013 9,737,301 11.7
Novermber 2013 9,462,443 11.5
October 2013 8,567,463 11
September 2013 9,088,092 11.5
August 2013 9,387,604 12.2
July 2013 9,576,481 11.5
June 2013 9,225,262 10.1
Source: National Bureau of Statistics of China
Textile yarn, fabrics and made-up articlesChinese monthly exports, in millions US $1,000
China textile industry statistics
Chapt�2�Textile�trade�stats_JM_Layout�1��05-Sep-16��5:36�PM��Page�7
SAMPLE
42 | China Textile Sourcing Guide 2016
GB 4287-2012 DISCHARGE STANDARDS OF WATER POLLUTANTS FOR DYEING AND FINISHING OF TEXTILE INDUSTRY
No Parameters
Discharge�limit�(mg/L)�(except�pH)
Requirement�A Requirement�B Requirement�C
1 pH value 6 – 9 6 – 9 6 – 9 6 – 9 6 – 9 6 – 9
2 CODcr 100500b
200c80
500b
200c60 80
3 BOD 25150b
50c20
150b
50c15 20
4 Suspended substances 60 100 50 100 20 50
5 Colority 70 80 50 80 30 50
6 Ammonia nitrogen1220d
2030d
1015d
2030d
8 10
7 Total nitrogen2035d
3050d
1525d
3050d
12 15
8 Total phosphorous 1.0 1.5 0.5 1.5 0.5 0.5
9 Chlorine dioxide 0.5 0.5 0.5 0.5 0.5 0.5
10 Absorbable organic halogen 15 15 12 12 8 8
11 Sulfide 1.0 1.0 0.5 0.5 Not detected
12 Aniline 1.0 1.0 Not detectede Not detectede
13 Total anitomy 0.1 0.1 0.1 0.1 0.1 0.1
14 Chromium (VI) 0.5 Not detectede Not detectede
15
Cotton, bast,chemical fibre
175 140 140
Pure silk, wovenfabric
350 300 300
Yarn, knitted fabric 110 85 85
Worsted Fabric 560 500 500
Woollen fabric 640 575 575
Wastewater that discharges into the municipal wastewater treatment plant or through the municipal wastewater pipeline, must meet the requirement of directdischarge. aAdded into the standard, according to the modification on March 27, 2015 by the MEP. This modification has since been suspended. bDischarge limitis applicable to wastewater solely generated from the textile industry (without mixing with wastewater from other sources), and discharged into a centralisedtreatment plant in the industrial zone (including industrial park, development zone, or cluster of industry) which is specified for dyeing and finishing wastewatercollection and treatment only. The effluent from a centralised treatment plant must meet the discharge limit in remarkc . cDischarge limit is applicable to the otherindirect discharge scenarios.dDischarge limit is applicable to batik industry only. The requirements for anilines and chromium VI in Requirement B and Requirement C are temporarilysuspended. During the suspension period, the requirements of anilines and chromium VI should follow Requirement A, according to the announcement, by theMEP on June 2015. If product mix is different, refer to FZ/T 01002-2010 for conversions.
Waste water discharge quantity
per product unit (m
3of water /
tonne of standard materials)f
Direct
Discharge
Direct
Discharge
Indirect
Discharge
a
Indirect
Discharge
a
Direct
Discharge
Indirect
Discharge
a
Factory wastewater total outfall
The
location for discha
rge qu
antity
calculation shou
ld be the same as water
pollutants discha
rge mon
itorin
g location
Workshop or facility outfall
Discharge
mon
itorin
g location
Chapt�5�pollution�legislation_JM_Layout�1��05-Sep-16��5:43�PM��Page�8
SAMPLE
48| China Textile Sourcing Guide 2016
medium sized dyeing and finishing enterprises inChina had gone out of business in the wake ofmore stringent pollution regulations.
Another trend to emerge from our research wasthat there was a marked reduction in violationsfrom 2014 – 2015 across all search terms. Theexplanation provided by the IPE for this was thetime-lag in terms of both records being disclosedby government bureaus and records beinguploaded to the IPE database.
A third clear trend to emerge from our research wasthat for all the search terms we examined, there wasa dramatic jump in violations from 2012 onwards. Asindicated above and in Chapter 5, the legislativestandards for printing and dyeing wastewater werestrengthened considerably in 2012, with anassociated increase in enforcement. To this end, thismarked spike in violations is – to some extent –encouraging and can be viewed as the legislation
taking effect, and enforcement actually taking place(a lack of enforcement always being a concern whenlegislation of this nature is introduced).
Another observation from our research was thesignificant focus of records in Jiangsu, Guandongand Zhejiang, with all three of these provincescontaining significantly more violation recordsthan Fujian and Shandong. The explanation for thisis two-fold, according to the IPE. They told us:“Firstly, these three provinces are home to themajority of textile wet processing suppliers inChina, containing more such enterprises thanFujian and Shandong. Secondly, Zhejiang andJiangsu have both become leaders in environ-mental information disclosure and monitoring,with Zhejiang in particular leading the way.”
Finally, in Shandong, the number of violations acrossall areas was found to have risen considerably in2015. The IPE told us that the most plausible
Year All China Fujian Shandong Jiangsu Guangdong Zhejiang
2015 837 17 131 141 144 305
2014 899 20 52 160 144 455
2013 727 15 12 150 136 351
2012 307 5 5 95 58 88
2011 290 3 9 134 51 60
2010 283 4 4 111 47 72
2009 243 11 5 105 29 46
2008 354 10 6 191 45 48
2007 311 10 18 114 26 67
2006 169 3 19 56 21 17
Table 1: Violations on the IPE database using the search term ‘textiles.’ Note the spike in violations in 2013and 2014 as regulators looked to clampdown on polluting textile mills and stringently apply new regulationsfor the industry. The full figures were not available for 2015 at the time of writing but indications were thetrend was continuing upwards.
Chapt�6�IPE_JM_Layout�1��05-Sep-16��5:45�PM��Page�6
SAMPLE