By Carmen Pang,Executive EditorShanghaiTexEyes New Records, AgainOrganizers have high hopes
for this year’s ShanghaiTex — the first major post-quota textile show in China.

Visitors to ShanghaiTex will have the opportunity to take in some of Shanghai’s famous
historical attractions.ShanghaiTex 2005, scheduled for June 3 through June 7, will be the first
large-scale textile show to take place in China following the elimination of global textile quotas
at the beginning of this year; and show organizers are prepared for yet another record-breaking
event.While textile manufacturers in the United States, Europe and many other countries are calling
on their governments to take emergency safeguard measures in the face of exponential surges in
Chinese textile exports, China is riding the wave to global domination.According to preliminary
data collected in the first three months of this year by the U.S. Department of Commerce’s Office
of Textiles and Apparel (OTEXA), China proved to be the biggest winner in post-quota textile export
trade. In some categories, according to OTEXA, China’s exports, compared to the same period in
2004, exploded hundreds and thousands of percentage points. For example, the United States’ imports
of cotton knit shirts, cotton trousers and underwear from China grew 1257.87 percent, 1521.04
percent and 308.07 percent respectively. (See Financial Data on Page 65 for more trade
data.)Meanwhile, according to Chinese Customs General Administration’s data, China exported $5.21
billion worth of yarn, fabrics and textile goods in the first two months of 2005, representing an
increase of 33.4 percent compared to the same period in the previous year. Similarly, the country
exported $9.31 billion worth of apparel and accessories in January and February of this year — an
increase of 27.8 percent over 2004.In light of these numbers, both the U.S. and E.U. are looking
into initiating safeguard measures as outlined in the provisions of China’s World Trade
Organization Accession Agreement.New Industrialization RoadThere is no doubt that these postquota
trade issues will continue to play out, but China’s textile industry will undoubtedly maintain its
role as one of the country’s most important industries.At the 2nd Global Textile Economic Forum,
held in March in China, Du Yuzhou, president of the China National Textile and Apparel Council
(CNTAC), said that “domestic demand and globalization are the driving power for the sustained
growth of the textile industry in China during the new period,” and that “the textile industry will
keep its important role in this historical period for comprehensively building up a well-off
society in China.”In order for the Chinese textile industry to fulfill its role as an economic
growth engine, Du said “industrial upgrading is the general momentum for the development of the
Chinese textile industry in the new era.”To achieve such upgrading, Du outlined in his address the
steps China will take in the “New Industrialization Road,”which is a “reinforced industrialization
program” that will include:• speeding up the construction and application of information
technology-based information systems;• increasing scientific and technological inputs;• improving
economic benefits;• reducing energy consumption;• developing perpetually recycling economy;•
treating environmental pollution;• practicing clean production;• putting the advantages of human
resources into full play;• strengthening education and training; and• regulating social
accountability.Du added that the targets for such upgrading are to improve product quality;
strengthen innovative and creative capability; and sharpen quick response awareness. More
importantly, he stressed that industrial upgrading will be partly achieved through the importing of
technology, equipment, management skills and philosophy, talent, and investment.With the emphasis
on technology improvement, ShanghaiTex could prove to be the opportunity for international machine
makers to show off what they have to offer to Chinese textile makers who are eager to embark on the
“New Industrialization Road.”

The soaring Oriental Pearl Tower has become an icon that symbolizes today’s Shanghai — modern
and vibrant. It will provide the backdrop to this year’s ShanghaiTex.Full House At The ShowAs with
past shows, this year’s ShanghaiTex has attracted machinery makers from around the world.According
to Hong Kong-based Adsale Exhibition Services Ltd., one of the organizers of the event, floor space
area at this year’s show is expected to reach 100,000 square meters, representing a 40-percent
increase from the previous show in 2003. In fact, exhibition space is in such demand that
organizers have added two temporary outdoor halls. Inside, the show will take over all of the seven
exhibition halls at the Shanghai New International Expo Centre. As of press time, halls 1, 2, 6 and
7 are slated for international companies, while halls 3, 4 and 5 will house local Chinese
exhibitors.According to Christine Ng, senior project executive — publicity, Adsale, more than 1,300
exhibitors from more than 20 countries are expected to be at the show.In addition, there will be 10
national pavilions hosting machine manufacturers from Germany, Italy, the United States, Spain,
Korea, Taiwan, Switzerland, France, China and the United Kingdom. Among the pavilions, the German
and Italian presence is the largest, with companies will be exhibiting, said the Association of
Italian Textile Machinery Manufacturers (ACIMIT), reflecting the importance of the Chinese
market.According to ACIMIT, China was the top buyer of Italian machine exports in 2004. It
purchased 311 million euros worth of equipment, representing a 15-percent share of all Italian
exports. Of the total machine sales to China, 41 percent was for spinning machines, 26 percent for
weaving machines and 22 percent for knitting machines.In terms of attendance, Ng said the number of
visitors is expected to be more than 120,000. As of press time, Adsale said those attendees who
have preregistered represent 50 countries.Besides seeing the latest equipment presented by the
exhibiting machine manufacturers, show attendees will have an opportunity to participate in
technical seminars that cover such topics as dyeing and finishing and eco chemicals; techtextiles
and nonwovens; spinning developmentand applications; and nanotechnology.

May/June 2005