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Growth of Chinese textiles & garment exports slows down
Jul '11
The growth rate of China's textile and garment exports has slowed down this year, according to China's Ministry of Industry and Information Technology. This is in spite of the fact that production, exports and profits of the textile sector have witnessed a steady growth so far this year.

In terms of volume, Chinese exports of cotton goods to the US have seen a year-on-year decline of 13.4 percent during the first five months of the current year. Similarly, the country's exports of wool items and garments to the US have also decreased year-on-year by 5.7 percent and 0.8 percent respectively.

During the same period, US imports of these items from Bangladesh, Indonesia and Vietnam have increased in volume. This shift in orders from China to other countries reflects the declining competitiveness of the Chinese textiles and garment sector in the global market.

In fact, many Chinese companies have reported a 20 percent reduction in their orders this year.

Hike in labour costs, the variations in the price of raw inputs, the appreciation of the RMB, and higher interest rates – have all affected the global competitiveness of Chinese textile sector. These factors have raised the cost of business operation in China, resulting in the rise in manufacturing costs.

Industry experts say that capturing more high-end market would be the key to China retaining its status of being a world's factory. Hence, Chinese enterprises would have to upgrade their operational facilities in order to withstand the intense competition, they say.

Fibre2fashion News Desk - China

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