Value
China Textile in Global Value Chain
Jean RUFFIER
CNRS searcher,
CEFC, Centre d’Etudes Français sur la Chine Contemporaine, Hongkong
French chair of
Centre franco-chinois de sociologie de recherche sur les organisations
中法组织研究中心, SUN Yatsen University, Guangzhouruffier@univ-lyon3.fr[->0]
After being a worldwide threat, Chinese apparel industry is facing a double challenge:
1 - Either to remain a low cost base in the international value chain using low wage advantages with a double threat: not being able to control apparel world value chains and depend strongly on Western companies good will. On the other hand, Western companies can look for other low cost advantage Asian countries or favor near shoring strategies by relocating businesses in closer locations (as North Africa and Central East Europe).
2 – or going on the value chain at home, with more capital intensive and more qualified labors could give an advantage to Chinese companies, controlling the quality, adding more value to the products, changing its position in the value chain but with the obligation to find new markets, to set up new distribution channels and to keep its new competitive advantage (productivity, quality) both on domestic and international markets.
The paper describe Chinese apparel private companies facing that challenge, making a typology of different strategies. We will describe the different actors who are shaping the new world value chains: Chinese bosses, local governments, traders and westerns companies.
China’s industrial take-off surprised economists, but it now lasted for twenty years with the industrial growth rate still higher than 10%. China has changed scales. China has become richer, and the world as well. But is it possible to take stock of this growth that has transformed the industrial landscape of the world as a whole. Its size, one-fifth of the world population, makes difficult an appraisal of its economy. No one had anticipated China’s take-off
Jean RUFFIER
CNRS searcher,
CEFC, Centre d’Etudes Français sur la Chine Contemporaine, Hongkong
French chair of
Centre franco-chinois de sociologie de recherche sur les organisations
中法组织研究中心, SUN Yatsen University, Guangzhouruffier@univ-lyon3.fr[->0]
After being a worldwide threat, Chinese apparel industry is facing a double challenge:
1 - Either to remain a low cost base in the international value chain using low wage advantages with a double threat: not being able to control apparel world value chains and depend strongly on Western companies good will. On the other hand, Western companies can look for other low cost advantage Asian countries or favor near shoring strategies by relocating businesses in closer locations (as North Africa and Central East Europe).
2 – or going on the value chain at home, with more capital intensive and more qualified labors could give an advantage to Chinese companies, controlling the quality, adding more value to the products, changing its position in the value chain but with the obligation to find new markets, to set up new distribution channels and to keep its new competitive advantage (productivity, quality) both on domestic and international markets.
The paper describe Chinese apparel private companies facing that challenge, making a typology of different strategies. We will describe the different actors who are shaping the new world value chains: Chinese bosses, local governments, traders and westerns companies.
China’s industrial take-off surprised economists, but it now lasted for twenty years with the industrial growth rate still higher than 10%. China has changed scales. China has become richer, and the world as well. But is it possible to take stock of this growth that has transformed the industrial landscape of the world as a whole. Its size, one-fifth of the world population, makes difficult an appraisal of its economy. No one had anticipated China’s take-off
References: ARVANITIS (R.) & JASTRABSKY (E.), 2004, “A system of regional innovation in gestation: the example of Guandong” offset CFCSIT, Canton. Suzanne BERGER (2006), Made in monde, Seuil, Paris, 265p FU Xiaolan (2008), Foreign Direct Investment, Absorptive capacity and regional innovation capabilities: Evidence from China, OECD, Global Forum on International Investment VII, March 2008, 39 p. LEVINE (S.B.) & KAWADA (H.), 1980, Human resources in Japanese Industrial development, Princeton, Princeton University Press. SCHUMPETER (J.A.), 1942/1942, Capitalisme, socialisme et démocratie, traduction G. Fain, Paris, Payot http:// dx.doi. org/doi: 10.1522/cla.sej.cap. WALSH (V), 1998, “Technology and the competitiveness of small countries: Review”, in C. Freeman and B.A. Lundvall, Small countries facing the technological revolution, London, Pinter Publisher. WANK (D.L.), 1999, Commodifying Communism – Business trust and politics in a Chinese city, Cambridge, Cambridge University Press. WEBER (M.), 1905/2003, L’ethique protestante et l’esprit du capitalisme, Paris, Gallimard. The National Development and Reform Commission (2008 décembre), The Outline for the Reform and Development of the Pearl River Delta (2008-2020), 122 p.