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Chinese T&C exports touch record highs
Jan '11
China's textile and apparel exports reached US $206.53 billion in 2010, a record high and an increase of 23.59 percent year on year. Of which, textile exports achieved US $77.051 billion, an increase of 28.44 percent year on year, exports of clothing and accessories fetched US $129.478 billion, an increase of 20.88 percent year on year.

December, textile and apparel exports registered US $19.915 billion, a growth of 4.72 percent from the previous month, of which, textile exports were US $7.372 billion, an increase of 4.22 percent from the previous month, exports of clothing and accessories marked US $12.543 billion, a gain of 5.02 percent from the previous month.

Output of textile enterprises above the scale will exceed 4 trillion Yuan in 2010; profit is expected to exceed 200 billion Yuan, according to preliminary estimates of the China Textile Industry Association.

Industry sources point out that export growth of China's textile and garment has maintained a steady increase so far since it reversed the negative growth by early 2010. China's textile exports hit the highest growth level since the reforms were undertaken.

The rapid growth in textile and clothing exports was mainly due to the gradual recovery of international markets and increased demand for replenishment from buyers. Meanwhile, the industry also gradually boosted industrial structure adjustment and industrial upgrading.

However, the industry also faced some adverse factors in 2010. Domestic labor costs increased by 20–40 percent on average, raw material prices too broadly increased by 30–100 percent, the RMB appreciated nearly 3 percent since the second reform.

But enterprises found it difficult to increase prices, as foreign buyers generally could not accept price increase by over 20 percent; some European and American customers cut back purchases in China and shifted more purchases of low-end goods to Southeast Asia.

Experts predict that the average annual growth rate of China's textile exports will remain at 5 –8 percent during the "Twelfth Five-Year Plan" period, and will reach US $250-280 billion in 2015. Of which, value growth will become the important engine driving export growth of China's textiles.

Fibre2fashion News Desk - China

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