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China Textile Industry Report: 2009 Review and 2010 Outlook (04/06/2010)

Updated: 2010/4/6 10:18:00

In the year 2009, China textile industry reversed the downward trend and maintained rapid growth, thanks to industrial upgrading, raised export tax rebates and other favorable policies.

Textile industry signaled recovery
"Revitalization Plans for the Textile Industry" was passed in early 2009. One year after China launched the stimulus package and regained economic growth momentum, the textile industry has overcome serious difficulties and has made new developments.

Domestic markets returned to the spotlight
In 2009, many Chinese textile and garment enterprises have felt the chill and turned their eyes away from European and American markets and focused back on the domestic market. From Jan. to Nov., domestic sales of above-scale Chinese textile enterprises edged up 14.05 percent year on year to CNY 2674.033 billion, accounting for 79.89 percent of the total. It is important to note that garment sales in the domestic markets have jumped by more than 21.77 percent. Besides, construction and auto fields are new growth points for nonwovens. Data shows that sales of textile belts and curtain fabrics in the domestic markets were up 25.16 percent year on year.

Fig 1 The growth rate and proportion of accumulated sales in domestic market (above-scale textile enterprises)

---the proportion of accumulated sales in the domestic market
----the growth rate and proportion of accumulated sales in the domestic market

---------Source: National Bureau of Statistics of P.R. China

Manufacturing and sales rebounded . Manufacturing and sales of China textile industry rebounded in 2009. Looking further, the total industrial production value of 52963 above-scale Chinese textile enterprises increased 9.71 percent y/y to CNY3426.804 billion in Jan.-Nov. 2009, 4.62% higher than the growth rate of the Jan.-Feb. 2009 period. The sales value wAS CNY 3347.067 billion in Jan-Nov. 2009, 9.82% year on year, 6.69% higher than the growth rate of the Jan.-Feb. 2009 period.

Fig 2 The growth rate of total industrial production value and sales value (above-scale textile enterprises)

The decline in exports narrowed
Fresh data shows that, in Dec. 2009, China´s textiles and garment exports registered first positive growth since Apr. 2009. According to China Customs, exports value of textile and garment amounted to $16.787 billion in Dec. 2009, up 4.49 percent year on year. Accumulated exports value of textiles and garment (not including No.94 category) in the Jan.-Dec. 2009 period amounted to $167.024 billion, down 10.07 percent year on year. The decline in accumulated textiles and garment exports was being constantly reduced and the tendency of rebound is increasingly obvious. Continuity in the demand for the Chinese textiles covering in the world market was keeping the hopes of exporters alive that after the recession. From Jan. to Nov. 2009, China´s accumulated textile and garment export value to the United States, EU and Japan amounted to $78.818 billion, which accounted for 51.14 percent of China’s total textile and garment export value. According to CNTAC, in Jan.-Nov. China´s textiles and garment exports value to the United States edged up 1.53% year-on-year to $25.34 billion, accounting for 40.22 percent of overall United States textile and garment imports; China´s textile and garment exports value to Japan edged up 0.26% year-on-year to $20.1 billion, accounting for 78.45 percent of Japan’s total textiles and garment imports
.

Leading index turned upward
As seen from table 1 , most industrial index in 2009 have sent clear signals that the growth of industry is accelerating. From Jan. to Nov. 2009, total profit for above-scale textile enterprises was CNY133.149 billion, up 25.39%, 36.40 percentage points higher than the growth rate of the Jan.-Feb. period.

Authority in Charge: China National Textile and Apparel Council (CNTAC)

Sponsor :China Textile Information Center (CTIC)

ISSN 1003-3025 CN11-1714/TS

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