Industrial Policy Department of State Development and Reform Commission has recently forecast that state macro-control policy will further lower the growth rate of China's textile and garment exports in 2007. It is estimated that China's annual export volume will achieve US $165 billion, an increase of 16 percent over the previous year.
The trade surplus still exists in second half of this year. It is expected that RMB exchange rate will maintain its appreciation trend, in turn continuing to weaken the price advantage of China's textile and garment exports and bring greater pressure to textile exports.
There are three major reasons for the drop in growth rate of China's textile exports. Firstly, continued appreciation of RMB has weakened export price advantage. Secondly, instability of trade environment, technical barriers and increased export risks have posed impediments and thirdly, lowered export tax rebate rate has brought pressure onto textile and garment exports.
In addition to these, countries like EU, the USA and others are imposing anti-dumping and countervailing duties and erecting technical barriers against Chinese products. These have seriously threatened the country's textile exports.
According to customs data, from January to May, China's textiles and garment exports reached $57.373 billion, a rise of 15.55 percent over the same time last year, nearly nine percentage points below the growth level of the same time last year and lower than the national export growth rate of 12.25 percent.
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