Jiangsu Port Textile And Garment Exports Continued To Fall

Since August, the export of textile and clothing at Jiangsu port has been decreasing month by month. In October, it exported only 180 million US dollars of textile and clothing, an increase of 12.9% over the same period last year, a decrease of 10.4% compared with the same period, and the export volume dropped for 3 consecutive months.

At 1~10 month, the export of textile yarns, fabrics and products at Jiangsu port increased by US $1 billion 140 million, an increase of 28.7%, an increase of 26.3 percentage points, a contribution of 78.7% over the same period of Jiangsu port's overall export growth of textile and clothing, and a 730 million increase in export clothing and accessories at Jiangsu port, an increase of 7.5 percentage points.

At 1~10 month, Jiangsu port exported 1 billion 130 million US dollars of textile and clothing in general trade mode, an increase of 21.4%, accounting for 60.2% of the total value of textile and garment exports at Jiangsu port. During the same period, the export of textiles and garments by processing trade reached US $720 million, an increase of 21%, accounting for 38.3%.

At 1~10 month, Jiangsu port exported 370 million, 320 million US dollars and 310 million US dollars to the European Union, the United States and Japan respectively, which increased by 17.4%, 5.3% and 7.1% respectively. Three of them accounted for 53.2% of the total export volume of textile and clothing at Jiangsu port.

At 1~10 month, foreign-invested enterprises in Jiangsu port exported 990 million US dollars of textile and clothing, an increase of 23.1%, accounting for 52.7% of the total value of textile and garment exports at Jiangsu port. In the same period, the state-owned enterprises and private enterprises at Jiangsu port exported 470 million and 380 million US dollars of textile and clothing respectively, representing an increase of 15.3% and 25.3% respectively.

With the spread of the world financial crisis, the textile and apparel market in Europe and the United States continued to shrink. According to the latest data from relevant market research companies, textile and garment production, new orders and procurement in the European Union fell to the lowest level in 10 years.

Meanwhile, retail sales in the US dropped 1.2% in September, the biggest drop since August 2005.

The sharp weakening of international market demand has led to a sharp fall in China's textile and garment exports.

Influenced by the accelerated appreciation of RMB and the substantial increase in labor costs, China's textile and garment export competitiveness has weakened.

With the gradual formation of the scale effect of textile and clothing in India and Vietnam, the obvious labor cost advantage has posed a great challenge to the export of China's textile products.

China's textile exports to the US decreased by 3.1% in 1~7 months, but India's exports to the United States increased by 0.9% during the same period, while Vietnam's textile and clothing exports reached a record $5 billion 100 million, an increase of 20.5% over the same period last year.

However, since August, Jiangsu textile and garment exports continued to fall, the effect of export tax rebate rate increase is not obvious.

Since November 1st, the state has again raised the export tax rebate rate of some textiles and clothing by 1 percentage points to 14%. However, the impact of the world economic downturn caused by the US financial turmoil has yet to be observed.

In 1~8 months, the deficit of China's textile industry above Designated Size Enterprises expanded from 19.1% in the same period last year to 21.3%, and the deficit of loss making enterprises increased by 66% over the same period last year, 52.1 percentage points higher than that of 13.9% in the same period last year.

According to the China Textile Industry Association estimates, with more and more textile enterprises below the scale down or shutting down, about 3 million of the country's employees will be affected.