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China Confirms Dramatic Growth in Textile Exports

posted on January 6, 2006

China, the worlds largest producer of cotton, announced recently it plans to boost production to 6 million metric tons annually. The Chinese will remain net cotton importers since the increased production will satisfy only 70 percent of demand from its domestic textile industry. According to the National Cotton Council of America, Chinas growth as a user of cotton and exporter of textiles is unprecedented in the history of manufacturing. This week the Chinese government confirmed what western nations have been saying for the past year: China has dramatically increased its textile exports.

China Confirms Dramatic Growth in Textile Exports

Over the past year, both the United States and the European Union have complained that a flood of low-priced Chinese textiles is hurting their producers after a global quota system ended last January. This week, the Chinese government confirmed a dramatic increase in textile shipments.

According to China's Chamber of Commerce, textile exports to the U.S. and Europe rose more than 62 percent in the first 10 months of 2005. Total Chinese textile exports in 2005 were valued at $116 billion -- up 20 percent from the previous year. And more than one-third of those exports were bound for the U.S. or Europe. Responding to the influx of textiles, the European Union negotiated export caps with China, while the U.S. imposed temporary unilateral restraints.

China's textile industry, which already was the world's largest, grew about 20 percent overall in 2005, with annual sales of $250 billion and profits of $8.2 billion. The Chinese government claims the growth is due to increased investment and innovation by Chinese producers.


Tags: China news trade