2010: Chinas textile on the mend, problems remain-Texglobe

Since the second half last year, China's textile industry has suffered from big difficulties never seen before as the result of global economic crisis. Now the industry does gradually step out of the shadow. Industry exports point out that textile exports will still be on the mend this year.

Chinese government raised the export tax rebate of textile and garment for consecutive four times in the face of economic crisis in 2009, adjusting it from 11% to 16%, and released a stimulus package for the industry in an effort to boost China's structural upgrade of the sector. In October last year, textile industry achieved a year-on-year increase 11.8%, the first time since Nov 2008 it came back above positive territory. In November last year, the community realized a year-on-year increase of 11.2%.

According to statistics from the Customs released on Jan 10, China exported 167.024 billion USD worth of textile and garment in twelve months to December 2009, dropped by 9.8% from a year earlier.

As per news posted in MIIT( Ministry of Industry and Information Technology )'s offical website, China's textile industry grew by 11.5% year-on-year in Nov 2009, down by 0.3 percentage point from previous month; export value increased 7.8% in the month, up by 7.7 percentage points from October.

Data from the General Administration of Customs available recently displayed good trend too. The exports of yarns and fibers, fabrics, garment and accessories came up a lot in December 2009. Exports of commodities in yarn, fiber and fabric category totalled 6.22 billion USD, up by 15.8% from Nov’s number, the maxium of the year.

According to the Customs, foreign trade totalled 2.2 trillion USD in 2009, down by 13.9% from 2008 and slightly higher than 2007’s value. Trade surplus amounted to 196.1 billion USD, down 34.2%.

"Global demand will continue to recover as world economy warms up this year. Yet the impact of the crisis remains, and the increase of textile exports in 2010 is more a kind of recovery than a persisting growth as before",Wang Qianjin pointed out, an export in textile industry. He added, protectism and change of RMB exchange system may cap the exports of China's textile and garment in the future.