Will "Made in China 2025" Transform the Textile Industry?
With the implementation of the "Made in China 2025" strategy to build a stronger manufacturing nation, the textile and apparel industries are poised for significant changes in the following areas:
1. Industry Structure
In any era, industrial upgrading depends not only on entrepreneurs’ sensitivity to the future but, more importantly, on economic strength. "Made in China 2025" cannot be achieved through slogans alone—it requires substantial financial investment from enterprises. Moreover, such investments may not always yield the expected returns, as everyone is essentially crossing the river by feeling the stones. Some make it across; others step into deep water. Whether by fate or fortune, it’s a risk you have to take—because you have no choice.
Given the massive economic commitment required by "Made in China 2025," companies that successfully implement it tend to share the following characteristics:
Truly profitable enterprises – To maintain their competitive edge in the market, industrial upgrading is imperative. Plus, they can earn some "reward" money from the government—why not? More importantly, upgrading increases production efficiency and reduces costs, which is a major boon for profit margins. It gives companies significant "wiggle room" in market competition and may even create opportunities for monopolistic control.
Government-backed enterprises – Some companies are tied to the nation's economic lifelines and public welfare. Even if they operate at a loss, they must be supported. That’s the essence of political correctness. Just look at state-owned enterprises (SOEs) under the central government; the "sons of the first wife" are naturally more privileged. Envy or resentment is futile—birth determines everything. These companies receive strong support both economically and technologically, making them the first beneficiaries of "Industry 4.0."
Joint ventures – With the disappearance of China’s demographic dividend and the rise of middle-class spending power (a huge market), many joint ventures will take the lead in industrial upgrading. They also have inherent technological advantages—many developed countries already have mature "Industry 4.0" models. To some extent, joint ventures can simply "copy and paste" these models, giving them significant advantages in R&D costs and upgrade cycles. The foreign monk knows how to chant the sutras—to a degree, this is "experience correctness."
Certain innovative enterprises with vision and courage – The leaders of these companies exist to explore the impossible. They are curious about and eager for new things, and they are willing to turn that desire into action. In their dictionary, there is no worldly success or failure—only relentless forward motion. Such "crazy" people do exist. Sometimes I feel my own boss is exactly that kind of person: particularly energetic, willing to try anything, even if there’s only a one in ten thousand chance. And he allows you to fail, though not repeatedly. Fail often enough, and success will follow. Working with such a person can be both a blessing and a misfortune—it all depends on how you strike the balance.
What happens to small and medium-sized enterprises (SMEs) when large enterprises move up the ladder?
Those that are doomed will die. For example, current environmental protection assessments alone have crushed many small businesses. Most have been shut down directly, often indefinitely, because they simply cannot pass the assessment. A small enterprise’s revenue over several years might not even cover the cost of a single set of environmental protection equipment. How can they stay in the game? I know one small business owner who, after being ordered to cease operations by government authorities, decided to defy the order and resumed production at night to fulfill orders. The next day, he ended up eating prison food. This red line is something no one dares to cross now—cross it, and you die.
In fact, "Made in China 2025" emphasizes the deep integration of automation and information technology, which is not suitable for many small enterprises—especially the automation aspect. From my personal experience, many companies do not need to blindly pursue automation, because any form of automation must be built on a certain scale. This is particularly true for automated production lines. Since we haven’t yet achieved true intelligence, especially in breaking through the bottlenecks of human-machine collaboration, the rigidity of simple automated lines restricts the variety and diversity of products. This forces companies toward mass production.
Many books on Industry 4.0 blindly hype automation and intelligence, often concluding that the ultimate result of automation and intelligence is mass personalization. That is inherently impossible. If you insist on going that route, there’s only one way: the so-called "modular design of product functions," where customers are guided to customize within those modules. Even this kind of customization has significant limitations—it’s not truly free-form customization. To put it bluntly, you can only customize in certain areas, and only by choosing from a limited set of options provided by the company. Automated production lines simply cannot handle large-scale mixed-model production, because their flexibility is too low. Current technology cannot overcome this.
So, those companies that boast about mass customization are not as impressive as the news makes them out to be. They’ve only achieved a certain degree of flexible production. Most of the time, you’re overthinking it.
2. Transformation of Talent Structure
With the gradual advancement of "Made in China 2025," many people worry about losing their jobs. What if machines replace them? What will they do?
Are you doomed? No. You can move to less demanding roles—provided you’re willing to learn new knowledge and skills. If you accept this change, machines will take over the hard, exhausting work, and in return, you’ll enjoy a more comfortable work environment and easier tasks. Isn’t that what it means to be human?
For higher-end roles, however, a single specialized skill may no longer be enough. You may need to master multiple skills. Interdisciplinary fields will flourish. For example, mechanical engineering will no longer be just about machinery—it may involve electrical control and computer programming. Without that, you won’t be able to communicate or collaborate effectively with other teams. Information technology and internet knowledge will become essential skills for middle- and high-end talent in future manufacturing. If you also learn data analysis and application, that will be your ultimate career ace. It will be hard not to excel.
3. Changes in Business Models
As industrial upgrading progresses, "Made in China" will once again prove its worth. You won’t need to travel all the way to Japan to buy a toilet seat—neither convenient nor attractive. You won’t have to beg a friend to bring you a kitchen knife from Germany for chopping bones. A Chinese-made kitchen knife will easily satisfy your foodie needs—chop bones, chop stones, no problem.
Future Chinese companies will focus more on two qualities:
Quality – Make the best products and sell them to those who truly appreciate them.
Service – Provide the best service to the most discerning and demanding customers.
Especially as the middle class continues to grow, if a manufacturing company doesn’t rethink its direction in terms of quality and service, I see no future for it.
Look at the people around you. Aren’t many of them already willing to pay for quality? They use iPhones, carry LV bags. Is it really all about vanity? Not necessarily. The real story is the willingness to pay for quality.
"Made in China 2025" can significantly improve product quality. Production will no longer rely solely on workers’ skills and moods, but on precise and stable machinery, as well as sound, well-executed management systems. All of this holds great promise for the future.
