China’s textile and garment industry recorded a surprising surge in export value last month. Monthly exports of textiles and garments beat expectations and increased by 17.5% compared with a year earlier to a record high of US$33.22 billion in July, according to data released by China Customs. The value also increased by 5.3% from June, when Washington’s Uygur Forced Labour Prevention Act was enacted.
Garment exports from Wenzhou, a manufacturing hub in eastern China, increased by 42.55% in the first five months of 2022 compared with last year, but he anticipates increased challenges for the rest of the year. However, industry insiders said the momentum is not a true reflection of the industry’s strength, as July’s exports were mainly from the orders placed months earlier, while rising prices may have also caused the surge.
Despite the sweeping United States ban on products from the region that produces 90% of the nation’s cotton, China exported 3.62 million tonnes of cotton products in the first half of the year, a 2.73% year-on-year increase, while the export value increased by 15.
05% to US$43.07 billion, according to Beijing Cotton Outlook Consulting. As one-fifth of global cotton is effectively banned from entering the US market, the price has been pushed further on top of the pressure caused by the Ukraine war. But the price of Xinjiang cotton has continued to fall as it has been increasingly shunned by downstream manufacturers who are wary of running afoul of the US ban, despite state stockpiling having started last month.
