Printing and Dyeing Industry Self-Discipline Initiative Targets Price Wars and Overseas Expansion

China's printing and dyeing industry is undergoing a fundamental shift from volume-driven growth to quality-oriented operations. On June 29, 2026, the China Printing and Dyeing Industry Association, together with local industry organizations and leading enterprises, released an initiative calling for self-discipline across the entire value chain, signaling that the industry's tolerance for disorderly competition and risk accumulation is narrowing.

Background

The initiative did not emerge out of nowhere. Over the past two years, overcapacity combined with weak demand has forced some mills to slash processing fees to secure orders, dragging down profit margins across the sector. The association's explicit mention of "involution-style low-price competition" reflects a real pain point: dyeing fees have fallen from over RMB 3 per meter a few years ago to less than RMB 2 in some regions, while costs for dyes and steam have remained high.

At the same time, intellectual property infringement—such as pattern copying and brand trademark counterfeiting—has become rampant. A printing mill owner in Shengze told the Texcircle editorial team that a new pattern costing hundreds of thousands of yuan to develop was copied by a competitor within two weeks of its launch, forcing the original developer to slash its price. Such a vicious cycle not only erodes the profits of innovative companies but also dampens the industry's overall willingness to invest in technology.

Industry Impact

The eight key areas outlined in the initiative correspond directly to the most pressing challenges facing the printing and dyeing sector today.

• **Price wars and business ethics**: The initiative explicitly calls for resistance against "involution-style low-price competition" and prohibits disparaging competitors or stealing trade secrets. This puts direct pressure on small and medium-sized enterprises that have long relied on low-cost strategies, pushing competition toward quality and service rather than price alone.
• **Intellectual property protection**: By including "resisting pattern copying and brand trademark counterfeiting" in a self-discipline document, the association signals that it will push for stricter monitoring and reporting mechanisms. This is a positive signal for mills with original design capabilities, as their creative assets will receive stronger protection.
• **Green transformation and safety**: The initiative emphasizes "source control" and the creation of "green factories," citing the Ecological Environment Code and the Work Safety Law. This is no empty rhetoric: environmental inspections in Zhejiang and Jiangsu have become routine, and any violations in emissions or safety management could lead to fines or even production suspensions.

Particularly noteworthy is the eighth point on "scientific planning of overseas capacity." In recent years, many printing and dyeing companies have followed the textile and garment supply chain to Vietnam, Bangladesh, Indonesia, and other countries, but some have faced disputes due to a lack of understanding of local laws, labor policies, and cultural customs. The initiative's call for "strengthening overseas investment risk assessment" and "improving risk monitoring mechanisms" essentially summarizes the lessons learned from previous "herd-style" overseas expansions.

Practical Recommendations

For Printing and Dyeing Mills - Conduct an immediate internal audit against the eight principles of the initiative, focusing on whether environmental permits are valid and whether safety management systems are in place, to avoid problems in subsequent industry inspections. - Establish or improve internal archives for patterns and technical patents, register copyrights for self-developed products, and use the association's platform for collective rights protection if infringement is detected. - Evaluate current customer structures and order patterns, gradually reducing reliance on "pure low-price orders" and shifting toward long-term quality contracts with brand clients to stabilize profit margins.

For Foreign Trade Companies - Before planning overseas capacity, commission a professional agency to conduct due diligence on the target country's environmental regulations, labor laws, and customs policies; do not rely solely on intermediary information. - When cooperating with overseas factories, clearly define intellectual property ownership and confidentiality clauses in contracts to prevent technology leakage or imitation. - Pay attention to the initiative's requirement to "comply with international trade rules," ensuring that export products meet destination market standards in terms of color fastness, formaldehyde content, and other indicators, to avoid trade disputes caused by quality issues.