**Shanghai, China – ** The value of Chinese textile and apparel exports plunged by 8.35% year-on-year in the first half of 2023, falling to US$143.25 billion, according to data from the China National Textile and Apparel Council (CNTAC). .
The decline was largely attributed to shrinking demand in major export markets, particularly the United States and the European Union, due to soaring inflation, rising interest rates, and the ongoing war in Ukraine..
**Weakening Demand, Rising Costs**.
The US, China’s largest export market for textiles and apparel, saw a 12.6% decrease in imports from China in the first half of the year. The EU, China’s second-largest export market, experienced a 7.6% decline..
Weakening demand in these key markets was compounded by rising production costs in China, driven by higher raw material prices and labor costs. The Russia-Ukraine conflict further disrupted supply chains and pushed up transportation expenses..
**Shifting Production, Market Diversification**.
In response to the challenging export environment, Chinese textile and apparel manufacturers are exploring alternative production bases in Southeast Asia and other regions with lower labor costs. They are also seeking to diversify their export markets by targeting growth opportunities in emerging economies..
**Government Support**.
The Chinese government has introduced various measures to support the textile and apparel industry, including tax incentives, export subsidies, and infrastructure investments. However, industry experts believe that the sector’s recovery will depend on the broader economic outlook and the easing of global headwinds..
**Outlook**.
The outlook for Chinese textile and apparel exports remains uncertain in the second half of 2023. While some analysts predict a gradual recovery as inflation moderates and consumer spending rebounds, others remain cautious due to geopolitical tensions and the lingering effects of the pandemic..
The industry is closely monitoring global economic developments and adapting its strategies to navigate the challenging environment. Continued innovation, cost optimization, and market diversification will be crucial for Chinese textile and apparel manufacturers to weather the storm and emerge stronger in the long run..
