Chinese textile and apparel exports plummet by 8.35%
China experienced the steepest drop in its exports in the first half of the year since the beginning of the health crisis. Customs data reveals that the textile and apparel industry was not immune, registering the equivalent of 130.8 billion euros, marking an 8.35% decrease during the period.
Exports of clothing and accessories fell to 68.7 billion euros, a decline of 5.9%. The decline was more pronounced on the side of yarn and materials exports, which were 10.9% lower than the level seen in the first half of 2022. These exports stood at approximately 62 billion euros for the first half of the year.
The inflation affecting European clothing consumption is playing a key role in this downturn. And the effects are being felt even among countries supplying China with textile production materials. Indeed, facing a more uncertain market, China reduced its imports of yarn and materials by 19.6%, amounting to 4.9 billion euros.
In 2022, China exported 296.6 billion euros worth of textiles and apparel. This represented a modest increase of 2.5% over the year. Apparel exports to Europe, where demand was experiencing the early effects of inflation, had surged by 32% to 28.8 billion euros, a figure that no longer surpasses its closest contender by the same margin as in the past: Bangladesh (21.8 billion euros).
Nevertheless, exports are just one specific indicator of the Chinese textile industry, which also serves the vast domestic market of the country. As the country emerges from Beijing's 'Zero Covid' strategy restrictions at the end of 2022, domestic consumption is said to be the primary driver of the national recovery, with a 10.6% increase in retail sales as early as March. This marks the strongest growth observed since June 2021.
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