Can Chinese Textile Enterprises Invest And Build Factories In The US?

Mike Flanagan, chief executive officer of garment industry < /a > Consulting Company, said: "some of the high-end manufacturing companies in the United States are moving their production lines back to the mainland. Even some powerful overseas buyers are complying with the trend, such as China's Cole group and ShrivallabhPittie textile group of India, and so on, and wait for the us to invest and build factories in p a."

People will see more and more advanced yarns, garments and other products made of raw materials in the United States.

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< p > analysis points out that whether it is textile and garment industry or other manufacturing industries, reflux is a trend, but not all products and enterprises are suitable for reflux, which depends on the value of production products.

Only high-end products with higher added value and enterprises capable of producing such products will be profitable in the return tide.

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< p >, then, how successful is the Chinese textile enterprise's investment and construction in the < a href= "//www.sjfzxm.com/news/index_c.asp" > US < /a >? < /p >

< p > < strong > using superior resources of the United States < /strong > /p >

< p > with the rise of wages, energy and land prices in Asian markets such as China, in order to save costs, more and more Asian textile workers moved their factories to the southeastern part of the United States, causing the local textile industry to decline for decades.

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< p > domestic cotton textile enterprise Zhejiang Cole Group Co., Ltd. will invest 218 million US dollars to build a factory in Lancaster County, South Carolina.

Cole group is the first direct foreign investment cotton textile enterprise in Zhejiang province. It is also the first enterprise in the United States to set up a manufacturing factory in the United States.

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< p > Liu Aihua, Secretary General of Zhejiang cotton textile industry association, said Cole group's operation in the United States was mainly influenced by environmental pressure and rising price of raw materials.

It is said that the electricity charges of new factories in the United States are only half of that in China and can be supported by the local government.

Kohls Corp is expected to create at least 500 jobs.

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The P ShrivallabhPittie group will invest 70 million US dollars to build pure cotton combed yarn in the ShrivallabhPittie Industrial Park in Georgia, Georgia.

ShrivallabhPittie group chairman said that market opportunities, skilled labor, quality cotton fiber supply, reliable power supply and world-class infrastructure are important reasons for attracting group investment.

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< p > Zhu Qinghua, a light industry researcher at CIC, analyzes the profitability of Chinese textile enterprises in the US, which has more advantages than domestic ones.

"Although labor costs in the US are higher than those in China, the cost advantage of cotton is stronger, and the US government has a greater subsidy for cotton, which is nearly half the price of cotton in China.

In addition, the production technology in the United States is more mature and easier to grasp the direct sales of the US market demand.

He said.

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< p > besides the cost and technical advantages, some American buyers also conveyed a message to < a href= "//www.sjfzxm.com/news/index_c.asp" > manufacturing enterprise < /a > "back to the United States, I will buy more products".

WAL-MART has clearly expressed its willingness to buy more products in the United States, which is more responsive to market demand.

The label "made in America" can increase the added value of the product to a certain extent, and the advantage of the advantage will shorten the operation cycle of the goods.

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< p > < strong > investment in Chinese enterprises needs to be tailored to be less than /strong > /p >

After the outbreak of the financial crisis, the manufacturing industry represented by the textile and garment industry accelerated recovery in P.

In this process, the US government has become a powerful promoter.

In 2009 ~2012, the Obama administration launched a series of policies, such as "buy American goods", "manufacturing Promotion Act", "five year export doubling plan", "internal employment promotion initiative" and so on to help American manufacturing revival, and gradually reflected the policy effect.

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< p > "there are many enterprises that want to divide the United States, but not every enterprise is suitable."

Bai Ming, a researcher at the international market research department of the Ministry of Commerce, pointed out that Chinese enterprises should not only look at opportunities, but also see challenges.

"Some industries may have an impact on the local industry and will be subject to censorship by US investment protectionism.

Many enterprises are "going out" through mergers and acquisitions, but most of them are poorly managed.

There may also be labor disputes and unfamiliarity with local laws and regulations, which are all landmines. "

Bai Ming said.

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< p > Zhu Qinghua said that Chinese invested enterprises in the United States need to have an in-depth understanding of American laws and invest in building factories in the United States. They should carry out production activities without touching the law and avoid labor disputes. Before investing, conduct detailed investigation and analysis of the location of investment, grasp local market conditions, carry out localization development, and adjust development strategies according to local market demand.

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