Textile industry: out of the shadow of the crisis to show real growth

In 2010, it is a year of great joy for China's textile and apparel exports. Not only did the annual export exceed the 200 billion yuan mark for the first time, but also the indicators data strongly implied that the export of textile and clothing has gone out of the shadow of a crisis that lasted for more than a year, shifting from recovery growth to substantial growth.

In particular, garment exports experienced a multi-year downturn in international demand during the financial crisis. In 2010, it has basically returned to its pre-2009 level. In particular, export value has been improved.

The annual export value of textile and garments tops 200 billion. According to customs statistics, in 2010 China exported 206.53 billion US dollars of textiles and apparel (including textile yarn fabrics and products, textiles, clothing, and accessories), an increase of 23.6% over the previous year, and the annual export value exceeded for the first time 200 billion mark.

In the middle of this year, textile and apparel exports showed a continuous upward trend. In the first quarter, exports maintained a pick-up trend at the end of 2009, a year-on-year increase of 15%, and an increase of 4.3% over the same period of 2008. In the second quarter, the export growth rate began to accelerate, and the export value hit record highs repeatedly. In the third quarter, the total export value exceeded 20 billion U.S. dollars. In the second and third quarters, the year-on-year increase in exports all reached more than 20%, and the growth rate also exceeded 10% compared with the same period in 2008. In the fourth quarter, the cumulative amount of exports in October exceeded the full year of 2009. In November, the cumulative export volume exceeded the full year of 2008, and the accumulated export volume exceeded 200 billion U.S. dollars by the end of the year.

As a textile and apparel manufacturing and exporting country, in the past 10 years (except for 2009), China's textile and apparel export growth has always been higher than the growth rate of imports. However, since 2010, this situation has changed, and imports have seen a trend of acceleration. In January, March, April and May, cumulative import growth exceeded exports, and the cumulative increase in imports for the full year also reached over 20% for the first time after 14 years. Although the trade surplus is still high, it has begun to show a trend of balance.

Apparel Exports Appear to Resume Growth In 2009, China’s garment exports fell into double-digit negative growth. In 2010, under the strong demand for library supplements, clothing exports basically recovered to levels before 2009. According to customs statistics, in 2010, China’s export of clothing and clothing accessories was US$129.48 billion, an increase of 20.9%.

From the monthly export situation, from the beginning of March, it showed a sustained growth of 4 consecutive months. In July, both the export amount and the export volume reached the highest level in the calendar year, and after the export peaked in August, it fell back, but the export amount still remained. Higher than the same period of the previous year. In November, the number of export hikes was significant in the single month, with the increase in export value and export volume reaching 39.01% and 21.73%, respectively. The monthly export value hit record highs, mainly due to improved export product structure, unit price increase and *** appreciation.

From the perspective of the composition of export companies, private enterprises achieved export volume of 67,150,675,000 US dollars, a year-on-year increase of 30.46%, accounting for more than 1/2 strong, reaching 51.87%. Private enterprises occupy the vast majority of private enterprises' exports. A total of 6.921938 million U.S. dollars; state-owned and state-owned enterprises have achieved an export value of 22,229.937 million U.S. dollars, an increase of 12.89% year-on-year, accounting for 17.17%. In terms of the year-on-year increase in the unit price of exports of enterprises, the rate of foreign-funded enterprises was the largest, reaching 186.48%. Among the foreign-funded enterprises, the increase rate of the Sino-foreign joint ventures was the largest at 200.06%.

In 2010, China's garment industry picked up its global exports. The clothing exports of these traditional markets in the United States, the European Union, Japan, and Hong Kong all increased. The export value increased by 26.35%, 22.77%, 5.74%, and 0.19% year-on-year respectively. In terms of exports from emerging markets, the value of Latin American exports in Latin America in 2010 was US$5,948.55 million, a year-on-year increase of 72.99%; the value of exports to Africa was US$408.129 million, an increase of 32.1% year-on-year; the value of exports to ASEAN was US$422.834 million, a year-on-year increase of 20.89%. The value of exports to Russia was 468.208 million U.S. dollars, a year-on-year increase of 54.98%. Reflecting the obvious economic recovery in the traditional export market, the emerging market has great potential for demand.

Judging from the situation in the provinces and cities, the exports of traditional large provinces rebounded sharply, and Heilongjiang and Sichuan grew rapidly. The clothing of the top five provinces showed a significant rise in both export value and export unit prices. The export value of Guangdong Province was 276.23224 million U.S. dollars, an increase of 23.04% over the same period of last year. The export unit price increased by 116.29% year-on-year; the Jiangsu export value was 19,244.78 million U.S. dollars, an increase of 18.65% year-on-year, and the export unit price increased by 166.92% year-on-year; the Shanghai export value was 128,807,300 U.S. dollars. The year-on-year increase of 14.48% and the export unit price increased by 98.10% year-on-year. Among the top 10 export provinces and cities, the export amount of Heilongjiang Province was 305.887 million US dollars, an increase of 73.18% year-on-year. Among other provinces, the export value and export volume of Sichuan Province increased by 36.42% and 64.08% respectively year-on-year. Hebei Province and Jiangxi Province also showed good growth.

The two major factors have helped boost export growth. In the past year, the European and American markets have shown that the economic recovery momentum is one of the main factors that contribute to the growth of China's textile and apparel exports. According to the data released by the American Institute for Supply Management (ISM) on January 3 this year, the US ISM Manufacturing Purchasing Managers Index (PMI) was 57.0 in December, which was higher than November's 56.6, and the growth rate reached a record high since May 2010. In December, the new orders index increased sharply to 60.9 points, a record high since May 2010; the December output index also achieved a quarter-on-quarter increase. According to data released by the US Department of Labor, the unemployment rate in the United States fell to 9.4% in December 2010, the lowest since May 2009, and the U.S. economy showed signs of recovery. On the other hand, according to European Commission data, the manufacturing purchasing managers' index (PMI) in the euro zone in December expanded for the fourth consecutive month, rising to 57.1, and remained above the 50-thirst limit for the 15th consecutive month. With the economic recovery in countries such as Europe and the United States, the demand for textiles and garments in the external market continues to increase, and China’s textile and apparel exports to major markets such as Europe and the United States continue to maintain rapid growth.

Another important factor is the result of the concentrated release of our country’s positive fiscal policy effects. Under the stimulation of the country’s RMB 4 trillion active fiscal policy, the textile industry as one of the revitalizing industries, the cumulative effect of fiscal policies was released, the textile industry continued to recover, and domestic production and exports continued to increase.