The textile export still maintains a growth of 22% even with various difficulties in the first year of 2010. This rise is much higher than that predicted by experts at the beginning of this year. However, experts still hold the opinion that the textile export will decline in the second half year and the business of processing low value added products will shift out of China.
Statistics from Customs show that the export value of textile and garments from January to June reaches 88.88 billion US dollars, up 22% compared to the same period last year. The export value of textile is 35.65 billion US dollars and export of garments is 53.28 billion US dollars.
It is found that although the garment export is good in the first half year, export of OEM garments decline 9.83% compared to the same period last year. Experts think that OEM is textile enterprises' developing mode at early stage. Most these textile enterprises are located in Guangdong province, whose profits are very low. Since labor costs increase in recent years, this kind of trade shrinks gradually. As a result, these enterprises move to South East Asia.
Analysis by Sinolink Securites even says that the prime time for China textile export has gone. The global textile production base has shift from China to India, Pakistan and South East Asian countries.
In terms of expectation of textile export in the second half year, experts say that many disadvantageous factors exist but the key is the change of these factors. For example, will the European sovereign debt crisis worsen in the future?
Relatively, textile export in the second half year is not optimistic. Appreciation of RMB and rise of salary will cut the tiny profits.
The topic of price rise appeals among enterprises because of the heavy pressure caused by all above factors.
