Analysis of the Impact of Industrial Land Price Distortion on Overcapacity in the Textile Industry and Its Sustainability in China

Abstract

At present, China is faced with a situation of unbalanced regional economic development. The report of the 19th session of the national congress of the Communist Party of China pointed out that we should accelerate the implementation of the strategy of coordinated regional development. However, this study finds that, in the process of “leaving the cage and changing birds”, the number of enterprises in the textile industry in the eastern region has risen again, which, in turn, has led to overcapacity and has seriously affected the sustainable development of the textile industry. The present study finds that the increasingly distorted price of industrial land is the root cause of the “surge phenomenon” of enterprises in the textile industry and overcapacity. Therefore, China’s central government should be fully aware of the negative impact of the distorted price of industrial land on the sustainable development of textile industry. Efforts must be made to solve the problems of the excessive influx of textile enterprises, overcapacity, and unsustainability in the eastern region in three aspects. Specifically, the land transfer procedure should be standardized, the motivation of local governments’ land attracting investment should be curbed, and the introduction of high-quality enterprises should be paid attention to.