Extraordinary Growth in Garment Exports Question

Garment exports this year is very good, 1 to June garment export growth is double the entire garment exports in the first half was 23.178 billion U.S. dollars, up 26.4%, which increased 22 percentage points over last year, the total apparel look inside and in the textile trade in the national growth rate of the total amount which it was not the highest.

From the country perspective, China’s exports to Japan is now number one, Japan has replaced Hong Kong more than two years, and had exported to Hong Kong is the largest in the first half of woven garment exports to Japan is 30.42 100 million U.S. dollars, up 7.8%, which is the minimum of the countries to increase, knitted apparel exports to Japan, 2.114 billion U.S. dollars, an increase of 17.12%, this increase is the lowest, and in the major exporting countries we are the smallest, it can be said that almost around the world had the smallest increase. Hong Kong’s woven garment exports 1.894 billion U.S. dollars, up 13.01%, this increase is not very high, but it is the growth of recovery in 2000 when we are down to Hong Kong. The third one is the U.S., the United States during the first half of this year exports of woven garments 1.378 billion U.S. dollars, up 38.49 percent, knitting is a 655 million U.S. dollars, up 30.22%, the EU is 1.375 billion U.S. dollars, up 42.23 percent. Woven apparel exports to South Korea is 495 million U.S. dollars, knitwear exports 499 million U.S. dollars, up 20.82%. From now it can be seen for the first half our country’s exports to the United States and the EU is the fastest growth. Inside the past in the industry how often will say how good we export, up to how fast it is to promote as a success, but this year I have some different views, I think too fast growth of garment exports after the band will to many relevant issues.

Now we state the growth rate of apparel exports, and prices are linked, which category the faster growth rate, the price of the category followed by the decrease in the maximum, rapid export growth in Europe and the United States this year, this price competition is very tough situation . Now look at our production and export situation seems to be very good, but I think now the situation is precisely the existence of our industry for many years, many problems and contradictions, is rapidly intensifying. I think the companies should be prepared for extraordinary growth in our exports this year, hit by the SARS and also the speed, particularly in the United States, Mexico is now the biggest increase exports of the State. Exports to the U.S. is the biggest increase in May, had reached 40.27% of woven garments, knitwear has reached 30.21%. Now the U.S. Commerce Department report showed even higher than we, he said that we increase as much as 66%. U.S. Department of Commerce addressed the issue in time, found a significant increase in Chinese textile and apparel, has been offset by other countries, the U.S. textile exports to decline, resulting in an overall upward U.S. textile and apparel phenomenon, the U.S. textile exports over the past decade this phenomenon has never , reached 656 million square meters, an increase of up to 66%, Chinese textile exports to the United States already accounts for the month, total U.S. exports of 19.3 percent. Therefore, this rapid growth is a very dangerous signal, we should say that the tree attracts the wind. Because the Chinese textile and apparel products have increasingly become the United States, Europe, Canada trade restrictions object, these countries may use at any time and our trade agreements, in particular, terms of product protection, or anti-dumping products to limit the terms of the clothing.

In fact, the rapid growth which category, while the export unit price will quickly drop down our country has been 6 years, and low prices make us the industry actually have feelings for each enterprise, up to now we have a lot of companies, the actual already felt the pressure and difficulties, low prices have become a vital bearing on the question of our industry. Export prices continued to drop, it should be said to threaten the survival of our industry in the future. Rapid export growth and external demand factors, but also the joint action of internal factors, the developed countries to reduce the economic downturn led to income, consumption and thus turned to high-quality and cheap Chinese goods, which with lower prices are relevant. Price changes in the environment also increased the number of opportunities for garment industry, many countries, the war continued, giving a sense of security to reduce China’s stability and security for the development of the apparel industry provides an opportunity for customers around the world continue to increase in China’s orders. From the inside of the main reasons there are six areas.

One is China’s accession to the WTO on non-tariff measures changes in the quota to make a positive response. Textile quotas, mainly in Europe and the United States, this part of the quotas were lifted, foreign investors will be excluded the value of this part, after the elimination of quotas in Europe and the United States, when foreign place an order, immediately press down the price, the original company that needed to get quota removed immediately lost part of the cost.Second, foreign direct investment expanded the size of our national production for export, but also increased the export channel, there are a lot of foreign investment in China, to China as an export base, which is growing rapidly in recent years we reason.Third, the proportion of export manufacturing enterprises increased diversification of export channels, I have carefully studied the information last year, less the amount of border trade in clothing the fastest growing, and this is our country’s export growth.Fourth, thanks to China’s garment export market diversification.Fifth, the garment enterprises have entered the cross-chain sales network, through a large flow of international drive international large-scale production, many large international groups in doing so, this link also and prices, and businesses through cross-border retail Group, directly into the retail market, more and more domestic enterprises and multinational corporations to establish good relations of cooperation, multinational corporations through marketing, bulk purchase of Chinese clothing products, and their general orders and large quantities, but the unit price is low, so this is Let’s exports rose, unit price decline.

Sixth, China two years in the development of new fabrics are also effective, and now the grades and varieties of clothing are also increasing, orders for export enterprises to create the conditions for a wide range, which is export growth, unit price decline. In 1994 our country had previously funded enterprises are not entitled to water policy, this part of the company’s price came down because of tax rebates, foreign investors now control our country’s policy is very clear, so some Zhengce is to own clothing industry, will soon be foreign-eaten. Very few companies really get very little benefit. In the clothing sector, the problem of declining unit price is quite a serious problem, in which there is a major factor is the disorderly competition within the industry. In so many factors, we should be concerned with is this.

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