China Clothing Industry in World Textile Value Chains

Jean Ruffier ()
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Jean Ruffier: CNRS, Sun Yat Sen University, Guangzhou

Institutions and Economies (formerly known as International Journal of Institutions and Economies), 2012, vol. 4, issue 3, 21-40

Abstract: This paper analyses the expansion of China’s clothing industry in world textile value chains. Using data from interviews and observations throughout factory visits in China and other countries we show how private Guangdong entrepreneurs started China’s clothing manufacturing. Lacking experience in consumer markets and designing, original equipment manufacturing was the route Chinese firms took to expand into garment manufacturing. Low wages and low margins of profits became their original source of competitiveness and rising shares in global market sales. These beginnings saw little direct support from both national and local government policies, though few barriers were erected to restrict the growth of these firms. However, although China has managed to secure a huge slice of the world market in garment sales, it continues to specialize in the low value-added segments of value chains. The paper concludes by considering options Chinese entrepreneurs have for exploring upgrades within garment value chains.

Keywords: China; clothing; Global Value Chains; labour conditions (search for similar items in EconPapers)
JEL-codes: F14 J61 L26 L67 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:umk:journl:v:4:y:2012:i:3:p:21-40

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