CHINESE mills are finding it hard to source labour following a government policy change.
Tianyu Wool Industry vice general manager Yiming Chen said it was difficult to find people to work in mills because of a government policy favouring the agricultural sector.
"Last year the government introduced a zero tax policy on agriculture," he said.
"They realised that if they didn't improve the situation in the agricultural industry, there would be a greater imbalance between the rich and the poor."
The emphasis on the industry will assist the country which has more than 800 million farmers (80pc of the population).
While China will still be relying on imports from other countries, Mr Chen said the government was expecting to become more self-sufficient.
While Mr Chen said the shortage was a concern for some mills but it did not affect Tianyu because he was hoping to reduce employee numbers resulting from increased machinery efficiency.