Textile & apparel exports up 25.73% yr-on-yr in H1

Price hike will also accelerate the trend of outward transition of China apparel processing industry. Southeast Asian countries can enjoy GSP (Generalized System of Preference) when they export to Europe and America, and these counties give foreign enterprise considerable preference in terms of tax policy. With the increases of labor cost in China, some labor intensive and low-value links in the production chain such as garment processing are gradually transferred to Southeast Asia, but the links with much technology content such as textile shell fabric still remain in China. Since this year, domestic and overseas branded apparel enterprises have strengthened their efforts in overseas OEM. Some textile shell fabric is exported to Southeast Asia from China and made into ready-to-wear garments there, which are then distributed to Europe, America, Japan, and Korea. Insiders believe that China's position in the industrial chain of textile and apparel export is gradually changing, and the trend will be more obvious in the future.

Although China textile and apparel export has achieved favorable and continuous development since this year, there are still many factors that restrain the development of the industry. Besides the possibility of export orders might reduce, enterprises are also faced with the upsurge of cost of production factors such as raw materials, labor forces, and energy and the restraint from appreciation of the RMB and environmental protection. Textile and apparel enterprises in China should catch the market opportunity and further explore and deepen emerging markets by increasing technology content, improving quality, and promoting additional value of original brands, so as to achieve better long-term development.