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China Apparel in Textiles World Values Chains

  • Jean Ruffier

    ()

    (ISEOR - Institut de Socio-économie des Entreprises et des ORganisations - Institut de socio-économie des entreprises et des organisations, Centre de Recherche Magellan - Institut d'Administration des Entreprises (IAE) - Lyon - Université Jean Moulin - Lyon III : EA3713)

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    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.

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    Paper provided by HAL in its series Post-Print with number hal-00764961.

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    Date of creation: 01 Oct 2012
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    Publication status: Published, Institutions and Economies, 2012, 4, 3, 21-40
    Handle: RePEc:hal:journl:hal-00764961
    Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00764961
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