After a decline in 2023, China’s textile, clothing and accessories exports rose by 1.12 per cent in Jan-July’24 period. 

China exported goods worth $169.8 billion in these three categories over the seven-month period. Its textile exports increased by 3,3 per cent to $80,8 billion during these seven months as compared to the same period in 2023, according to the figures from Chinese Customs. However, clothing exports by the country fell by 0.8 per cent to $88.9 billion over these seven months. 

Although much smaller than the decline seen last year, this drop in exports reflects ongoing international economic challenges affecting Chinese manufacturers. 

Chinese clothing and accessories producers remain heavily reliant on Western orders, while textile manufacturers supply materials to several Asian countries that feed production chains for Europe and the Americas. Last year, consumer spending in these regions slowed due to inflation, causing buyers to place fewer orders.

The slow recovery in exports comes at a time when Chinese manufacturers cannot easily pivot toward domestic demand. Despite its size, the Chinese market is grappling with the effects of a property crisis, which lowered growth to 4.7 per cent in Q2, FY24 and limited household consumption growth to 2 per cent Y-o-Y. 

This economic strain led Chinese leaders to hold an emergency meeting in mid-July, which resulted in a surprise cut in short-term interest rates to encourage spending.

Despite these challenges, China's sub-council for the textile industry (CCPIT-Tex) remains optimistic. In addition to modernising and automating its industrial base to reduce costs and lead times, the council is betting on the positive impact of the New Silk Road initiative. Countries participating in the initiative, including Bangladesh, Cambodia, Indonesia, Myanmar, Pakistan, the UAE, Egypt, and Turkey, account for over 50 per cent of China’s textile and clothing exports, offering potential for continued growth in the sector.