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China blames currency fluctuations for decline in textile exports

China's Ministry of Industry and Information Technology has said that the country’s textile and garment exports continued to decline last year, mainly due to the good performance in the previous year and exchange rate fluctuations.

The sharply depreciated yen and Euro had a direct negative impact on textile exports, as Japan and Europe have been China's main textile export markets. From January to October in 2015, the textile industry saw positive growth in exports to the United States, Africa, South Korea, but exports to other markets dropped during the same period.

China's textile export to the European Union reached $44.86 billion, falling by 10.6 per cent year-on-year, the export to Japan reached $18.8 billion, dropping 12 per cent, and the export to ASEAN countries hit $29.03 billion, slipping 1.7 per cent, according to customs data.

In November, retail sales revenues of clothing of China's 100 key retail enterprises fell by 5 per cent year-on-year. Meanwhile, from January to November, national online sales reached 3.45 trillion yuan, surging 34.5 percent year-on-year, and sales of clothing jumped 23.5 percent, the ministry said. As China is undergoing an economic transformation, high-tech industries are springing up in China's developed coastal regions to replace labor-intensive industries such as the textile industry.

During the same period, the added value of the textile industry increased 6.4 per cent year-on-year, and the sector continued to expand the scale of production. But the decreasing quality of domestic cotton has forced enterprises to largely import cotton from India and Pakistan. In addition, weak domestic consumption, shortage of orders, increasing costs of labor and electricity, and environmental controls have left Chinese textile companies striving to cope with international competition, the ministry added.

www.gov.cn

 
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