Ministry of Commerce: Domestic textile and garment export faces greater pressure

At the inaugural "Zhengzhou Agricultural Products (Cotton) Summit Forum" held recently, Ren Feng, from the Textiles Import and Export Division of the Ministry of Commerce's Foreign Trade Department, highlighted that China's textile and garment exports are still grappling with significant internal and external challenges. In 2023, the total export value of textiles and apparel exceeded $180 billion, but the industry is under pressure due to a range of factors. Ren explained that rising costs of raw materials and freight, along with increased labor expenses, have placed additional strain on the sector. The appreciation of the Chinese yuan and the growing trend of trade protectionism further complicate the situation. He noted that the average profit margin for domestic textile companies is currently between 3% and 5%, which limits their ability to absorb cost increases or raise prices significantly. Moreover, recent developments in U.S. policy have raised concerns. A proposed 2010 security bill by some members of the U.S. House of Representatives could have a direct impact on China's textile and apparel exports. If passed, it might restrict market access and disrupt supply chains. In response to these uncertainties, some major international buyers have started to diversify their sourcing strategies, shifting some orders to Southeast Asian countries. Despite these challenges, Ren remains cautiously optimistic. He believes that while the second half of the year may see continued steady growth in the textile and apparel sector, the overall annual export increase could be either higher or lower, depending on how these external pressures evolve. The industry will need to adapt quickly and remain resilient in the face of ongoing global economic shifts.

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