China'S Textile Exports Will Gradually Begin To Shift.

Despite the heavy pressure, China's textile industry still completed the first half of the year's performance by 22% of the export growth rate, which is much higher than the industry's expectations at the beginning of the year.

Customs statistics show that from 1 to June this year, China's textile and apparel exports totaled US $88 billion 880 million, an increase of 22% over the same period last year, exceeding the level of the same period in 2008.

Textile exports amounted to US $35 billion 650 million, an increase of 32.3% over the same period last year, and clothing exports amounted to US $53 billion 230 million, an increase of 16% over the same period last year.

Wang Qian, editor in chief of China's first textile network, said in an interview with our reporter that the growth rate of textile exports in the first half of the year was higher than that expected by the market, with multiple factors such as the external demand being warmer. However, it is mainly due to the need for replenishing stocks in developed countries such as Europe and the United States. The overall export growth in the second half of the year is expected to be lower than that in the first half of the year.

Reporters in the first textile network statistics found that although the first half of the textile industry exports as a whole, "red", but in the processing of clothing exports one or 9.83% decline.

In this regard, Wang Qian believes that this figure is in line with the current basic situation of textile and clothing exports.

"Raw materials processing belongs to the early development mode of textile export, mainly concentrated in the Guangdong area, mostly for Hong Kong and Macao enterprises, the added value of products is relatively low, and the profit source is confined to the foundry industry.

In recent years, with the increase of labor costs in China, the export of this model has gradually shrunk, and related enterprises are slowly moving to some Southeast Asian countries, which will become a trend.

Wang Qian explains.

According to the relevant analysis of state securities, the golden age of China's textile and clothing exports has already passed. The process of gradually shifting the global textile and garment production base from China to India, Pakistan and Southeast Asia has been launched before and after 2005, and it is irreversible.

For the second half of the textile export, Wang Qian believes that there are many factors that are not conducive to export on the surface, but the key is to see how these factors will evolve.

"For example, the impact of the European sovereign debt crisis will be as serious as expected, and it is not easy to say at the moment that the uncertainties in the second half of the year will increase."

In contrast, export enterprises are not optimistic about the situation in the second half of the year.

Many enterprises believe that the RMB exchange rate and wage increase will make the export profits of the second half of the year become more and more small.

The analysis of the above-mentioned state securities also pointed out that the high price of textile raw materials this year, the sharp rise in labor costs and the appreciation of the renminbi will have a greater impact on textile exports in the second half of this year.

Because of the increasing pressure of survival, the price increase has become an unavoidable topic in the textile industry in the second half of the year.

Mr. Cheng of Anhui Hongrun group told our reporter that because the domestic market often had a good year ahead of sale plan, the company did not raise the price in the first half of the year, but the autumn and winter products have begun to raise prices, but there still exist many difficulties in the implementation of the price increase.

Wang Qianjin believes that the domestic market of textiles has begun to raise prices, but it does not have the overall situation.

On the export side, it is very likely that there will be a "polarization" situation: some large enterprises have greater bargaining power and anti risk strength, and the price increase is relatively easy.