The booming textile market in China

China is one of the world's biggest textile producing and exporting countries. Long period of growth and development has enhanced its competitiveness and established more efficient and comprehensive industrial supply chains to support world demand. China's domestic demand for garments and accessories pushed profits to US$10.8 billion in the first eight months of 2008 with revenues from export hitting US$120 billion in the same period. Domestic demand and export are projected to rise to US$17.5 billion and US$190 billion, respectively.

Prospects for international trade remain bright with the abolition of EU-China textile trade restrictions in 2007 and the impending removal of trade barriers under the Sino-US textile agreement in 2008. More than 60% of the global textile market will soon open to China to bring greater opportunities to China textile producers.

In the domestic front, local consumption of textile products remains high. At present, 80% of China's textile products is for the local market. Rapid growth of the domestic economy and higher consumer income are expected to push further the development of China's textile market.

Recent China Government initiatives such as the reinstatement of VAT tax credits and incentives for makers to upgrade and produce higher quality/value added products will help ensure continued growth of the industry and the need for makers to upgrade equipment and materials used in the manufacturing process.

Source: Ringier