China's textiles exports growth regains momentum in 2010

Exports to the U.S. ballooned by 27.7 percent year on year to 33.73 billion dollars in 2010, or up by 33 percent compared to 2008, accounting for 16 percent of China's total exports.

Under the Multi-Fiber Agreement (MFA), the US bought textile products from China to the value of 35.7 billion dollars, accounting for 41.4 percent of its total imports of textiles and garments. This volume was up by 12 percent compared to 2006.

Consumption in the U.S. grew fastest of all the buyers. The country's GDP growth hit five-year high of 2.9 percent, as its government's proactive fiscal policies and quantitative easing monetary policies took effect. Consumption once again became a key driver of economic growth in the U.S.

By contrast, textiles exports to Japan saw the slowest yearly growth of 5.2 percent, or 5.3 percent compared to 2008. Japan's economic growth has almost stagnated in recent years as it failed to find a new motor for its economy. In terms of GDP, China overtook Japan to become the second biggest economy in 2010.

Though rivals from Southeast Asia and Central and South America emerged and expanded, textile products made in China gained increasing market share year by year, and maintained their dominant position in Japan, the US, and the European Union.

-- Exports to emerging market rebounded

Textiles export to emerging markets saw rapid growth in 2010. Of these markets, ASEAN, Russia, and Latin America became the three brightest spots. Products sold in these three markets climbed by 35.7 percent, 56 percent, and 61.6 percent respectively year on year.

Textiles trade volume between China and ASEAN increased by 37 percent year on year to 16.39 billion dollars, accounting for 7.2 percent of the total, as the establishment of China-ASEAN Free Trade Area on January 1, 2010 greatly facilitated bilateral trade.

By contrast, exports to the so-called "four traditional markets", including the European Union, the U.S., Japan, and Hong Kong, fell back by 2.5 percent, for consumer demand for low- and mid-end products was less in a reviving economy. These four markets once played a vital role in propping up China's exports by purchasing a large amount of mid- and low-end products in a sluggish economy. Last year, exports to these four markets totaled 115.78 billion dollars, accounting for 56 percent of total textiles exports in 2010.