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Strategies & Market Trends : China Warehouse- More Than Crockery
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To: RealMuLan who wrote (4055)1/3/2005 8:27:12 PM
From: RealMuLan  Read Replies (1) of 6370
 
Succeeding at Sewing
The most sweeping reform in industrial history leaves China poised to rule the garment trade.
By George Wehrfritz and Alexandra A. Seno
Newsweek International

Jan. 10 issue - John Cheh sells the shirt on his back. As chairman of Esquel China Holdings in Hong Kong, he runs a top producer of men's woven cotton shirts—or category 340Z under the World Trade Organization quota system that expired last week. "It's a high-end shirt with high yarn count. It has the feel of quality," he says, stroking his collar. Sold by Nordstrom for about $50, the label reads: made in malaysia.

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That claim complies with the quotas hammered out by trade negotiators over the decades, to be sure. But Cheh's shirt—along with millions of other garments now sold in the United States and Europe—is a camouflaged Chinese export. The cotton grew in Xinjiang, became yarn at a spinning mill in the Silk Road oasis town of Turfan and journeyed some 3,000 kilometers by truck to be woven into fabric in China's Pearl River Delta. In local garment factories, thousands of young women cut the cloth into patterns, stitch panels together and gather buttons, zippers and clasps into kits that are then "finished" by workers who sew the pieces together in nations like Malaysia. Even the made in malaysia labels are made in China.

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