According to the National Development and Reform Commission (NDRC), China’s light industry is anticipating 20% growth in 2007. The Commission estimates that the growth rate of exports from the sector, which includes leather, plastics and furniture, will fall slightly but that imports will continue to increase.
There has been a steady rise in the export of these products in recent years, adding to its trade surplus and leading to ongoing disputes with trade partners in the USA and Europe. However, the industry is now looking to cover future losses as a result of the rising value of the yuan—which is likely to affect profits—by increasing exports in the short-term.An NDRC spokesperson described the sector as lacking in innovation in the development of its own brands, stating that high-value added goods such as clothing and shoes were not being produced in sufficient quantities and revealed that American and European protectionist measures had targeted these brands. He also urged the sector to turn its attention to environmentally-friendly production methods such as lowering power consumption.
Exports from the light industry rose 18.6% to $228 billion in 2006, whilst imports increased 12.5% to $57.2 billion.
