In the first five months of 2009, China's export of textiles and clothing maintained a favorable balance. Domestic sales became a driving force for the industry s growth. However, indicators show that the foundations for recovery are still unstable.
Between January and June, because of a continuing decline in the demand from overseas markets, total exports of China's textiles and clothing dipped to 60.42 billion USD, a decrease of 11.13 percent year-on-year.
Declining international trade and the global economy have not bottomed out and the future of the overseas market is not optimistic. These factors are the main risks for China's textile and clothing industry.
In addition, the problem of insufficient domestic demand still remains. The difference in income between businesses within the industry is growing larger and it is hard for small to medium businesses to obtain financing.
The pressure caused by rising resource prices and falling prices in retail markets is also growing.
