China's textile and apparel exports in the first three quarters of 2024, was mixed, with growth slowing down in the latter part of the year. While the overall export value increased by 0.5 per cent year-on-year to $238.55 billion, the momentum weakened in the third quarter, particularly in September.
Key trends
Total export value increased by 0.5 per cent year-on-year to $238.55 billion in the first three quarters of 2024. In terms of market share, in the four traditional markets of ASEAN, US, EU, Japan, China still dominates accounting for 53.2 per cent of total exports.
Exports to the US increased by 5.7 per cent year-on-year, with a rebound in the economy and easing monetary policy. Exports to ASEAN grew by 6.1 per cent year-on-year, benefiting from the region's economic recovery, especially in Vietnam and Cambodia. However, at 2 per cent year-on-year exports to the EU was not much, despite a weak economic recovery. On the other hand exports to Japan declined by 9.9 per cent year-on-year, due to economic recovery, declining inbound tourism, and high inflation.
In terms of products, knitted and woven apparel exports increased by 4.6 per cent year-on-year, while yarn and fabric exports to ASEAN grew by 10.8 per cent. However, geopolitical uncertainties, exchange rate fluctuations, and weakening demand from emerging markets pose significant challenges for the future.
Data Table: China's Textile and apparel exports by market (Jan-Sep 2024)
|
Market |
Export value ($ billion) |
Year-on-year change (%) |
|
ASEAN |
38.82 |
6.1 |
|
US |
37.78 |
5.7 |
|
EU |
30.09 |
2 |
|
Japan |
11.82 |
-9.9 |
|
Belt and Road Countries |
118.55 |
-0.4 |
China's textile and apparel exports were impacted by a combination of factors, including global economic conditions, geopolitical tensions, and domestic policies. The strong performance in the first half of the year was primarily driven by a recovery in key markets like the US and ASEAN. However, the slowdown in the third quarter reflects the challenges posed by weak demand in some emerging markets and rising geopolitical uncertainties.
To maintain its position as a global textile and apparel powerhouse, China needs to focus on product innovation, value addition, and diversification of markets. Additionally, addressing challenges related to labor costs, environmental sustainability, and intellectual property rights will be crucial for long-term growth.
