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New figures have showed that china's textile and garment exportsslowed drastically in the first fou by grass lawn





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New figures have showed that china's textile and garment exportsslowed drastically in the first fou by
Article Posted: 02/24/2013
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New figures have showed that china's textile and garment exportsslowed drastically in the first fou


 
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New figures have showed that China's textile and garment exportsslowed drastically in the first fourth months of this year asdomestic companies worry about decreases in their market shareoverseas and inadequate support from consumption at home. The export value of textile and garments in the Jan.-April periodstood at 71 billion U.S. dollars, just 1.07 percent higher than ayear ago, according to data released on Thursday by the ChinaNational Textile and Apparel Council (CNTAC). The growth rate witnessed a sharp decline from the 27.05-percentrise registered in the first fourth months in 2011, judging bycustoms data. Breaking the market down, exports of textile products grew only0.15 percent to 30.73 billion U.S.

dollars, while garment exportsincreased 1.77 percent to 40.27 billion U.S. dollars, the CNTACdata showed. "The slowing exports were directly caused by higher domestic cottonprices," said CNTAC spokesman Sun Huaibin. The domestic price of328-type cotton stood at 18,853 yuan (about 2,974 U.S. dollars) pertonne as of May 25, 5,460 yuan higher than its price ininternational markets.

The continuing price gap has weakened the competence of thedomestic textile industry, Sun said, adding the nation's textileexports will face an even worse situation if the gap fails tonarrow in future. The spokesman said the disparity has also led to reduced marketshares of Chinese textile and garment exports. Along with rising labor costs at home in recent years, Chinesetextile and garment products in major markets such as the UnitedStates and Japan fell to 35.58 percent and 72.03 percent,respectively, in the first quarter of 2012, down 4.55 and 2.92percentage points year on year, Sun noted. Meanwhile, according to the CNTAC data, China's textile exports toits third-largest trading partner, the Association of SoutheastAsian Nations, grew only 2.69 percent in the Jan.-April period,representing a drastic fall of 59.66 percentage points year onyear.

The data also showed textile and garment imports by the UnitedStates, the EU and Japan dropped 6.55 percent in the first quarter,which added to the worries of Zhong Daguang, general manager of agarment company based in southern China's Guangdong province, whosaid his company has been getting fewer orders since the start ofthe year. Li Jincai, president of the China Textile Construction and PlanningInstitute, said obstacles in foreign trade and lackluster domesticconsumption are both having an impact on the status of thecountry's textile and garment industry, which supplied 32.71percent of total exports worldwide in 2010. At home, the situation is no less worrying. The CNTAC data showedthe sales revenues of 36,700 surveyed textile companies hit 1,677billion yuan in the first four months, up 13.11 percent; however,the growth rate plunged 17.43 percentage points year on year. Slowing growth in both exports and domestic sales revenues slashedthe first-quarter profits of the surveyed companies to 53.7 billionyuan, down 1.77 percent year on year, the data suggested.

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