Customs General Administration: Textile Industry Exports Exceeded Expectations In The Second Half Year

The resumption of consumption in Europe and the United States is one of the main reasons for the recovery of China's exports: the United States, the European Union and Japan are still the main markets for China's textile and clothing exports. The consumption of the United States and the European Union has gradually improved since the second half of 2009, and the steady recovery trend since May 2010 has been the main reason for the growth of China's textile and clothing exports.

Retail consumption is only a steady recovery. But by observing the import data of US textile and clothing, it is not only China in the second half of 2010, but also other major textile and garment exporters in the United States. On the basis of a higher base year in the second half of 09 years, it continues to achieve monthly high growth in exports of textiles and clothing to the United States. Especially in June this year, the US import data from all major textile and garment importing countries surged. We think this is the early preparation behavior caused by the US retailers' anticipation of the expected price rise of textile raw materials in the second half of the year. Especially for China's anticipation of rising prices of raw materials, there are still many factors such as inflation expectations, rising labor costs and expectations of RMB appreciation, leading to China's textile and apparel industry in the second half of 2010. In the second half of this year, exports exceeded expectations and expectations of raw material prices, inflation expectations, rising labor costs, and the anticipation of RMB appreciation. There was a lot of relationship between foreign investors' pre stocking: our chart 1,2 shows Europe and the United States.

Industry consolidation intensified, large and medium-sized enterprises benefited. The rising price of global raw materials caused the downstream customers to accept prices more than usual. This year, the textile industry has a better overall performance. However, 1/3 enterprises occupy more than 90% of the profits of the whole industry. Most small and medium-sized enterprises without capital reserves of raw materials are facing a sharp increase in the cost of raw materials and labor costs, and basically stop taking orders, making profits very low or even losing money, so it is difficult to maintain operation.