Preface: the pattern of "Three Kingdoms"

At the end of 2004, Humen cloth industry had seen profound changes and fundamental transformation had taken place in the cloth industry in South China.

In December 2004, Humen International Cloth Trading Center, which is at the crossway of Humen Municipal Golden Line and Humen Cloth Industry, was going through a critically important period to be among the top cloth circulation industries. It's determined to lead this industry, and realize its great ambition: expanding its business from garment industry to garment and cloth industry.

With the lift of the quota, a new environment for strong cloth demand is emerging.

The following figures and policies could mean a great deal to people involved in textile industry.

In 2002, the total sales revenue of textile industry in Guangdong Province amounted to 117.55 billion RMB Yuan, constituting 17% of the total volume of the country; in 2003, the total volume of textile exporting rose to 80.5 billion dollars, with a favorable balance of 64.7 billion dollars, and global share of 40%. China is becoming the leading textile production and export base; on January 1, 2005, with the lifting of quotas in textile and garment industry, it is predicted that the exporting volume of China's textile and garment industry will amount two thirds of the total amount of the world.

On January 1, 2005, with the termination of the Textile and Clothes Agreement, textile and clothes quotas shall be eliminated, and from then on, all the state-owned or privately owned enterprises, irrespective of their sizes, will enjoy the right of exporting.

It's said that the quota expenses in the textile industry of our country constitute a high percentage, for instance, the exporting price of one jean is 4 Yuan, while the quota expenses for exporting to Europe is 3 Yuan, accounting 40%; while the quota expense to America is 4 Yuan, accounting 50%. Therefore, the biggest advantage for the elimination of quota is the downfall in exporting prices for textile and clothes. Nowadays, China takes up 40% of the global total.

Given this, experts predict that, the lift of textile quotas in 2005 will exert a great influence in the world; the production and exporting amounts of textile and clothes in Dongguan and the Pearl River Delta, which are the textile and clothes production base, will soar at a surprising rate, and this will give rise to a soaring demand of corresponding raw or auxiliary materials. Since the supply of those materials is weak in Guangdong Province, this huge consumption engine will invariably cause room for the development of raw and auxiliary materials for both domestic and overseas enterprises.

Two tycoons: creating the global stage for textile materials supply

The year 2004 was a special year for the textile industries in the Pearl River Delta. In August this year, the newly built Xijiao Textile Creation Stage made its debut in the national textile industrial exposition. On December 12, South China City, committed to creating the trading center of industrial materials, had their first group of enterprises here.

Humen International: a leading enterprise in the textile industry with dominating power

If it's fair to say that Guangzhou International Textile Center and South China industrial material supplying city represent the upgrading trend of the textile industry, namely from large-scale comprehensive market to a more diversified and multi-functional direction, Humen International Cloth Trading Center is developing a new style towards professional and characteristic direction. It's committed to creating the new Silk Road and leading this industry as a professional cloth provider. Now, Humen International Cloth Trading Center is quite confident. At the end of this year, this trading center had been unveiled in the center of Humen Town, the first town of Chinese women's dress. Since then , it managed to turn a new look in the entire industry.

Humen International Trading Center is located in a very important place, a place referred as ˇ§ Satellite cityˇ¨, and this has given advantages to its rise. As China's first clothes town, there are more than 1000 clothes producing enterprises having their products made here and over a million companies purchasing garments and materials here, and this has helped Humen upgrade to the international level. Humen International Cloth Trading Center lies in the heart of Humen Town, enjoying this unique advantage.

Needless to say, Humen International Cloth Trading Center will be people's first choice for more than thousands of large-scale garment producing enterprises. As China's first clothes town, Humen has 80,000 to 100,000 visitors per day. In addition, it has been estimated that, after the completion of this center, 40 to 50% of its materials will be from South Korea and Japan, further displaying its international role.

In addition, after more than 20 years of development, the town is now facing the shortage of land resources. When the center has been established, its value will surely be added in the future.

Humen International Cloth Trading Center plays a role of streamlining economic industrial chain.

Garment industry has helped Humen realize its urbanization, but a further step relies upon the forming of the entire industrial chain.

In 1997, the opening of the first cloth market, Fumin market, marked the beginning of the garment industrial chain. Five years later, there had been six cloth markets coming into being, including Flower City, Xingyu and Fortune etc. They covered Bomei Street, lasting for almost 1 kilometer. The rent of each booth roared from the previous 80,000 Yuan to the current over 200,000 Yuan.

Despite these cloth materials wholesaling market, generally speaking, there is still a shortage of high-grade cloth materials, and the categories are not rich enough. Some companies still have to go a long way to Europe, Hong Kong or Guangzhou to get what they want. The establishment of Humen International Cloth Trading Center enabled the local enterprises to get what they want locally.

Since this founding, Humen International Cloth Trading Center has made its way out of problems like carelessness in market planning, complementing and management, which had been living with the previous companies.

In addition, Humen International Cloth Trading Center seeks to establish the new Silk Road by means of fostering the setting up of the communities in color designing, textile techniques exchange, cloth purchasing and cloth exhibition, and with this springboard, to promote the development of this economic industrial chain.

Guangdong textile exporting is still expanding with a strong momentum.
Up to 2005, the competitiveness of China's textile exporting will become more obvious, even threatening those traditionally important exporting countries, like Turkey and Mexico, and two thirds of the global demand for textile purchasing will be met in China. Some insiders noted proudly.

However, large-scale exporting relies upon the large producing base. And currently, the textile producing bases in China are mainly distributed in Guangdong, Zhejiang, Jiangsu, Shandong, Fujian provinces and Shanghai municipality. Take Guangdong for example, the total sales revenue in 2002 alone had reached 117.55 billion Yuan, accounting for 17% of the total of China. Secondly, the export-orientation of Guangdong textile industry is getting more conspicuous. In 2002, the total exporting amount of textile in Guangdong province has mounted to 14.27 billion USD, constituting 23.1% of the total of China, with 3.5 billion more than Zhejiang province that ranked second. Among them, the sales revenue for the export to Europe, America and Japan came to 47% of the total. Guangdong has been playing a significant role in European and American market in terms of high-grade products.

In addition, in the international market, Gongdong has been benefiting from the international textile fashion trend. To cater to the demands of foreign orders in technology and quality, the textile industry in Guangdong province has been upgrading its instruments with a faster speed. More and more orders are coming into this market, serving an impetus for the development of its own market. At that time, with the elimination of textile quotas, the exporting of textile will be advancing with more driving force.