The decline in exports of China’s textile industry is difficult to reverse in the short term

From January to September 2008, China’s cumulative exports of textiles and apparel increased by about 8% year-on-year compared with 2007, which was nearly 14.2 percentage points lower than the national foreign trade export growth rate and fell for 8 consecutive months. The decline in exports of China’s textile industry will be difficult to reverse in the short term.
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According to the latest data released by the General Administration of Customs, although China has increased the tax rebate rate for clothing exports since August 1, 2008, the good news has not been realized. The growth rate of clothing exports in August and September still showed a downward trend, and the clothing export market was sluggish. If combined with exchange rate changes, China’s textile and apparel exports have actually been showing negative growth since June.
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At the same time, the intensifying financial crisis has led to a significant slowdown in global economic growth, and the impact of shrinking external demand on China’s textile economic growth is likely to become negative in the future. This means that exports will no longer contribute to the growth of the textile economy and may even slow down future economic development.
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In addition, by the end of 2008, China’s textile and apparel exports to the United States will no longer be subject to import and export quota restrictions, and the trade barriers marked by the quota system that have lasted for many years have been dismantled. However, with the advent of the international financial crisis, the prospects for China’s textile and apparel exports in 2009 are unclear. Chinese companies will not only continue to face the weakening of consumption caused by the global economic slowdown, as well as fierce competition with the textile industry in other Asian countries, they will also It may face green barriers and technical barriers set by developed countries such as the United States, EU countries, Japan, etc., which are restricted by green environmental protection and new technology quality standards.
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Experts from the China Textile and Apparel Industry Association said that China’s textile and apparel industry will be difficult to pick up in winter in the next 1-2 years, and this trend will be difficult to reverse.