Facing weakened global demand and increasing trade challenges, China’s clothing export industry is actively exploring emerging markets, innovating trade models, stabilizing export volumes, and continuously seeking new avenues for growth.
According to customs statistics, China’s clothing exports (including accessories) totaled $61.38 billion in the first five months of this year, a slight decrease of 1.1% compared to the previous year. However, certain categories of clothing products witnessed notable growth despite the overall trend. Scarves/ties/handkerchiefs, socks, and suits/casual wear sets were among the categories with significant increases.
During the period from January to May, scarf/tie/handkerchief exports grew by 26.7%, suits/casual wear sets by 11.1%, socks by 5.1%, brassieres by 4.7%, shirts by 2.5%, and knitted T-shirts by 1%. Categories experiencing a decline in export value included infant clothing, sweaters, sportswear/swimwear, among others. Specifically, infant clothing exports decreased by 21.1%, sweaters by 9.7%, sportswear/swimwear by 9.2%, underwear/sleepwear by 6.7%, and gloves by 4.5%.
In response to this, a representative from the Clothing Branch of the China Chamber of Commerce for Import and Export of Textiles stated that despite the subdued global market demand, China’s clothing industry has demonstrated resilience, potential, and strong competitiveness. It is expected that China’s clothing exports will continue to face pressure but move forward.
Increased Share of Emerging Markets
During the first five months of this year, there has been a structural change in China’s clothing export market. The growth rate and market share in traditional markets such as the United States, Europe, Japan, the United Kingdom, and Canada have declined, while exports to emerging markets such as ASEAN, South Korea, Australia, Russia, and Central Asia have maintained rapid growth.
Data shows that from January to May, clothing exports to ASEAN amounted to $6.76 billion, with a significant increase of 19%, accounting for 11% of China’s total clothing exports, an increase of 1.9 percentage points. Clothing exports to the United States reached $12.5 billion, a 16.7% decline, accounting for 20.4% of China’s clothing exports, a decrease of 3.8 percentage points. Exports to the European Union amounted to $9.37 billion, down 19.9%, accounting for 15.3% of China’s clothing exports, a decrease of 3.6 percentage points. Exports to Japan reached $5.08 billion, a 7.1% decline, accounting for 8.9% of China’s clothing exports, a decrease of 0.5 percentage points.
Looking at major regional markets, clothing exports to countries along the Belt and Road Initiative, RCEP member countries, and other emerging markets have shown year-on-year growth. From January to May, clothing exports to countries along the Belt and Road Initiative amounted to $17.85 billion, an increase of 23.1%. Exports to RCEP member countries reached $17.28 billion, an increase of 7.6%. Exports to the six GCC countries in the Middle East increased by 11.8%, reaching $2.24 billion. Exports to Latin America increased by 0.9%, totaling $3.63 billion. Exports to Africa increased by 41%, totaling $4.19 billion. Exports to the five Central Asian countries surged by 63%, totaling $4.32 billion, with exports to Kazakhstan skyrocketing by 260.8% to $1.77 billion.
Opportunities and Challenges
Regarding the outlook for China’s clothing exports in the second half of the year, the aforementioned representative mentioned several opportunities that should be of concern to clothing export companies. Firstly, the pressure of market inventory is expected to ease, and international market demand is likely to rebound. Secondly, emerging markets continue to demonstrate sustained growth, offering opportunities for Chinese clothing exporters to adjust their strategies and seize new market opportunities. Thirdly, with the implementation of the RCEP agreement, ASEAN has become a new bright spot for China’s clothing export growth. With the continuous release of the agreement’s benefits, combined with the strong economic growth in Southeast Asia and the immense potential of new formats such as cross-border e-commerce, China’s clothing exports will gain new opportunities. Lastly, cross-border e-commerce exports continue to grow rapidly, providing assistance to China’s clothing export industry. Additionally, the cumulative depreciation of the Chinese yuan against the US dollar by nearly 4% this year contributes to enhancing the export profitability for Chinese foreign trade enterprises and helps stabilize orders and markets.
However, alongside these opportunities, China’s clothing exports also face various challenges. Firstly, it will take some time for global market demand to recover. Secondly, the uncertainty resulting from changes in trade rules between the United States and Europe will also impact Chinese clothing enterprises’ exports. Moreover, it is necessary for clothing export companies to anticipate and respond to fluctuations in exchange rates.
In the post-pandemic era, the global clothing supply chain has undergone profound adjustments, with significant changes in international political and economic environments, trade patterns, and market rules. The clothing export industry in China is facing unprecedented challenges. However, with the support of national policies to stabilize foreign trade, it is believed that China’s clothing export industry can withstand pressure, overcome obstacles, maintain existing markets, and explore new development opportunities, concluded the aforementioned representative. Source