Textile And Garment Exports Increased By Less Than 10% In May, And Moved Significantly To ASEAN.

The growth rate of China's textile and clothing exports continued to decline in the first quarter, and has dropped to below 10% in May.

Yesterday, the latest statistics of the General Administration of Customs showed that exports of textile and clothing increased by 15.4% in May compared with last year.

But in May it increased by only 9.7%, showing a downward trend.

According to customs analysis, the relocation of China's textile and garment industry to neighboring countries and regions such as ASEAN is the main reason for the slowdown in exports.

In recent years, India, Vietnam, Kampuchea and Bangladesh have all taken the textile and garment industry as an important supporting industry, and the labor cost advantage is stronger than that of China. Moreover, Guangdong's textile enterprises are also accelerating their relocation.

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According to statistics from the China Textile Import and Export Chamber of Commerce, there are more than 400 Chinese textile enterprises invested in Kampuchea, and nearly 100 in Bangladesh.

Export data (see table) show that textile yarn products as production data are slower than garments.

This shows that the influence of garment processing in China has been very apparent.

Exports to ASEAN are even more obvious. In the 1-5 month of this year, China's exports to ASEAN increased by 29.3%, including textile yarn, fabrics and products 2 billion 920 million US dollars, an increase of 44.6%, while clothing and accessories were 1 billion 200 million US dollars, increasing by only 2.8%.

Second, under the influence of the subprime mortgage crisis in the United States, China's textile and apparel exports to the European Union in the 1-5 months amounted to US $13 billion 610 million, an increase of 43.1%; the US $8 billion 640 million, an increase of only 1.4%; Japan's US $8 billion, an increase of 7%.

In addition, exports to ASEAN amounted to 4 billion 110 million US dollars, an increase of 29.3%.

Reporters yesterday learned from the staff office of Ningbo Zhongji foreign trade company's clothing business department that orders are now 30% to 40% less than before, and inevitably wages will have to drop.

The employee said many customers of the company's international market had already purchased products from Vietnam.