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July 2010 Textiles and Garments Exports Maintain Stable Growth

In July 2010, China's textile and garment exports continued to show stable growth. The country exported $7.159 billion worth of textile yarns and fabrics, marking a 1.39% year-on-year increase. Meanwhile, apparel and clothing accessories exports reached $13.63 billion, reflecting a stronger growth of 17.5%. While the growth rate for textiles remained consistent with June, the apparel sector saw a notable acceleration in its expansion. From January to July 2010, total exports of textile yarns and fabrics amounted to $42.839 billion, rising by 32.8% compared to the same period in 2009. Apparel and accessory exports totaled $66.827 billion, an increase of 17.4%. These figures highlight the resilience of the sector despite ongoing global economic challenges. However, the momentum of industrial exports slowed down in July, with the growth rate dropping by 6.8 percentage points from June. Specifically, the textile industry’s growth fell by 9.34 percentage points, while the apparel sector saw a decline of 4.96 percentage points. This suggests that the strong growth drivers from previous months have started to weaken. The textile industry continues to face several unfavorable factors. The low base effect from the previous financial crisis still influences export performance. Additionally, the second half of the exchange rate reform is expected to lead to a further appreciation of the yuan, which could impact competitiveness. Rising raw material costs and labor expenses are also putting pressure on profit margins for export-oriented enterprises. Moreover, demand in key markets such as Europe and the United States remains weak, raising concerns about potential declines in textile exports in the coming months. As the global economy gradually recovers, the sector will need to adapt to new challenges and maintain its competitive edge in international markets.

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