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China's textile export situation to remain grim
Aug '12
The value of textile and apparel exports from China rose by 1.3 percent year-on-year and 1.9 percent year-on-year, respectively, in the first six months of the current year, according to the data released by the Monitor and Coordinating Bureau under China Ministry of Industry and Information Technology.
The growth rates are much lower compared to a 9.2 percent growth recorded by China’s overall exports during the same six-month period.
Wang Tiankai, President of China Textile Industry Association, on a visit to Jiangsu province, said the gap between growth of China’s textile and national exports is widening and the textile export situation is likely to remain grim.
The pressure on Chinese textiles is from the difference in the price between domestic and imported cotton. The price gap is continuing to weaken international competitiveness of China's textile industry, he said.
The increase in price gap is owing to poor demand in international market. International cotton prices have been decreasing from September 2011 onwards.
In addition to the difference in prices of domestic and foreign cotton, the continuing shift of processing orders from China to neighbouring countries is also further weakening the competitive advantage of China's textiles, said Wang Tiankai.

Fibre2fashion News Desk - China

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