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Synopsis of exports from textile & garment sector

Dec '08
According to customs statistics, from January to October this year, China's textile and garment exports (including textile yarn, fabrics and products, apparel and clothing accessories amounted to US $153.68 billion, an increase of 8.6 percent over the same period last year, though growth rate fell 11.5 percentage points from the same period last year. Of this, exports in October alone touched $16.75 billion.

The first main feature of China's textile and garment exports in the first ten months of the current year is that general trade took a dominant place and border trade volumes also doubled. From January to October this year, China's general trade exports of textile and garment scored $106.5 billion, an increase of 4.1 percent, accounting for 69.3 percent of China's export value from the sector over the same period of 2007. Processing trade exports fetched US $34.32 billion, an increase of 6.5 percent in the period under review.

Secondly, shipments from the private sector continued to occupy the first place, though growth rate has significantly lowered. From January to October this year, China's textile and garment exports of private enterprises marked $64.21 billion; an increase of 9.8 percent, but growth rate fell 34.4 percent from the same period last year and accounted for 41.8 percent of all exports from the sector. Exports on the other hand of foreign-invested enterprises and state-owned enterprises totaled $50.65 billion and $29.96 billion respectively, representing an increase of 12.2 percent and 2 percent, respectively.

Thirdly, exports to the EU alone delivered excellent performance while those to Hong Kong received a set back. For the first ten months of 2008, the EU, US, Japan and Hong Kong continued to be the main markets for the sector and cumulatively accounted for 55.4 percent of China's total exports from the sector. From amongst them, exports to the EU stood at $32.51 billion, up 39.8 percent; exports to the US scored $21.64 billion, an increase of 2.5 percent; exports to Japan touched $17.5 billion, an increase of 7.3 percent, while shipments to Hong Kong fell to $13.51 billion, down 11.3 percent.

Fourthly, while enterprises in Zhejiang achieved a strong export growth those from Guangdong dropped significantly. In the period under review, the top three export provinces were Zhejiang, Jiangsu and Guangdong with all these three accounting for 57.3 percent of China's total exports from the industry. Among them, exports from Zhejiang registered $35.79 billion, an increase of 21 percent; exports of Guangdong completed $27.49 billion, down 21.5 percent while exports from Jiangsu reached $24.74 billion, an increase of 17.4 percent.

The fifth and the last, growth rates in export of clothing fell alarmingly, but the sector was compensated by the increased pace in textile yarn, fabrics and related products. Again in the first ten months of 2008, exports of clothing and accessories showed $98.27 billion, an increase of 2.8 percent, while shipments of textile yarn, fabrics and related products fetched $55.41 billion, an increase of 20.6 percent.

From amid key policies, announced by the government to control the fall from the sector was that on July 31, 2008, the state increased export tax rebate rates of the sector from 11 percent to 13 percent. Again, on October 21, the state raised export tax rebate rate from 13 percent to 14 percent which was once again raised in November to 17 percent.

Fibre2fashion News Desk - China

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