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 continue to face significant internal and external challenges. Despite the annual export value exceeding $180 billion, the industry is under pressure due to a combination of rising costs and shifting global trade dynamics. Ren explained that the primary factors contributing to this pressure include increasing raw material prices, higher freight costs, growing labor expenses, the appreciation of the renminbi, and the intensifying trend of trade protectionism. He pointed out that the average profit margin for domestic textile companies is currently between 3% and 5%, which limits their ability to pass on increased costs to consumers. Additionally, recent developments in U.S. policy have raised concerns. A proposed 2010 security bill introduced by some members of the U.S. House of Representatives could significantly impact China’s textile and apparel exports if enacted. Under the influence of such protectionist measures, several major international buyers have started to diversify their sourcing strategies, reducing their reliance on China and shifting part of their production to Southeast Asian countries. However, despite these challenges, Ren remains cautiously optimistic about the future. He believes that China's textile and apparel exports are expected to maintain steady growth in the second half of the year. While the overall annual increase may vary, the industry is likely to remain resilient amid ongoing adjustments in the global market. The coming months will be crucial in determining whether the sector can sustain its momentum in the face of evolving economic conditions.