Chinese textile and clothing exports confirm stabilization

In 2023, China saw its textile exports fall by 8.1% and its clothing exports by 2.9%. But the first seven months of 2024 show a return to balance, with a 1.12% increase in exports of textiles, clothing and accessories.

China exported goods worth $169.8 billion in these three categories during the January-July period. Textiles were the main driver of the slight growth observed, reaching $80.8 billion in seven months. This represents an increase of 3.3% compared to the same period in 2023, according to Chinese customs figures.

But the outlook is less rosy in the case of clothing. Exports fell 0.8% in seven months, to $88.9 billion. This is a much more contained drop than last year, but it reflects the international economic difficulties faced by Chinese manufacturers.

Chinese clothing and accessory makers are still heavily reliant on Western orders. Likewise, material manufacturers supply several Asian countries, whose production supplies Europe and America. These are markets where consumer spending slowed last year due to inflation, leading customers to be more cautious with their orders.

This slow export recovery comes at a time when Chinese manufacturers cannot afford to redirect their efforts toward domestic demand. Although huge, the Chinese market is feeling the effects of the housing crisis, which reduced growth to 4.7% in the second quarter of 2024 and limited year-on-year growth in household consumption to 2%. This stalemate prompted an emergency meeting of Chinese leaders in mid-July, which resulted in a surprise cut in short-term interest rates in hopes of boosting spending.

The Chinese sub-council for the textile industry (CCPIT-Tex) is optimistic. In addition to modernizing and automating its industrial base to reduce costs and delivery times, the organization is betting on the effects of the New Silk Road. Participating countries (including Bangladesh, Cambodia, Indonesia, Burma, Pakistan, the United Arab Emirates, Egypt and Turkey) account for more than 50 percent of China's textile and clothing exports.