China : Clothing production units prefer Midwest regions

From July 1, 2007, six provinces of central region will carry out a tax reformation.

The Vice Chairman of Zhejiang Clothing Industry Association stated that textile industry was slowly shifting to the Midwest areas and the proposed tax reformation would speed up the process.

Clothing Industry Associations of some provinces like Zhejiang and Guangdong have already arranged for the local enterprises to visit Midwest regions like Anhui, Jiangxi and Henan province, so that they can decide on their locations and plan the move.

The Midwest of China has rich labor force and many preferable policies but there are not many easily accessible industrial chains.

Infact, clothing companies have to travel to Zhejiang and other provinces to buy a particular kind of fastener.

However, experts believe that this shift would get faster and by 2009 companies will move their production units, here, on a big scale.