Chinese textile firms will get help from the government in establishing trade cooperation zones overseas, especially in developing countries, said China's Minister of Commerce Bo Xilai.

"We expect to strengthen China's economic ties with developing countries," the minister said at the third global textile economic forum held in Beijing on Monday.

The move will benefit both sides because it will not only help Chinese firms, but will also create jobs in target countries, Bo was quoted as saying by Tuesday's China Daily.

The move to establish overseas cooperation zones is a new focus for China's outbound investment, according a source involved in the project.

The minister also said the government would also help firms establish research and development (R&D), production and sales centers abroad, while strengthening the protection of intellectual property rights (IPR) in the textile industry.

"We will try to promote technological innovation with IPR protection systems," said the minister.

The central government will also help enterprises develop their own brand names through events and trade shows across China.

He explained many Chinese textile companies were in the process of transforming themselves from manufacturers for foreign brands to developing their own brands.

He revealed that investment by domestic textile firms into R&D was low compared with their foreign counterparts. R&D at major textile companies accounted for only 0.25 percent of total sales in 2004.

Therefore, their products are less profitable and largely concentrate on the cheaper end of the market.

The textile sector was one of the first industries to open up in the early stage of China's reform process.

So far, the industry has developed into a sector that employs over 20 million people, 70 percent of whom come from rural areas, according to statistics from the Ministry of Commerce.

China's textile sector achieved steady growth in both exports and production last year despite trade disputes with its main trading partners and price rises of raw materials.

Source: Xinhua