The National Development and Reform Commission (NDRC) and nine other central government departments have issued a joint circular calling for the accelerated restructuring of the country's textile industry.

The restructuring is designed to improve the innovative capacity of the industry, which currently only spends 0.3 per cent of its sales income on research and development. The sector also imports most of its sophisticated equipment.

The circular says companies in China's developed coastal regions should focus on brand building, marketing, research and development and other high value-added businesses. The circular urges labour-intensive businesses to move to the relatively undeveloped central and western parts of the country.

The government will also lend its support to the development of large enterprises with internationally influential brands and advanced technology and equipment, the circular says.