This study examines the development and location of the textile industry in Mainland China during the period 1949-1984. A good industrial location is conducive to industrial development. A bad industrial location has an adverse effect on industrial development. Therefore, an industry’s development and its location are closely related. The paper attempts to make use of this relationship to understand the textile industry in Mainland China.
A brief summary of some of the major findings is given below:
1. The supervisory policy regarding industrial location in Mainland China has been changed three times. First, they established a limited number of factories, that were larger in size, in specified areas. Secondly, they set up many small factories throughout the whole of the country. Thirdly, they laid emphasis on displaying the merits and avoiding the weaknesses.
2. Under the influence of the supervisory policy regarding industrial location, the growth of the textile industry has experienced severe fluctuations. During the first stage, the textile industry grew steadily. During the second stage, the textile industry declined reaching rock bottom. Finally, during the third stage, the textile industry grew very rapidly.
3. The geographical location of the textile industry is determined by both economic and non-economic factors. Due to limited data, this paper has only made use of twelve factors for the purposes of practical analysis. The results show that the most important factors which influence the decision as to where to build a firm are transportation, materials, and electric power.
