China trade: US’ Xinjiang ban looms large even as textile, garment exports surge to record US$33 billion in July

Export of textiles and garments beat expectations and increased by 17.5 per cent compared with a year earlier to a record US$33.22 billion in July

The Uygur Forced Labour Prevention Act went into effect in June, effectively banning US imports of all products from Xinjiang

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Monthly export of textiles and garments beat expectations and increased by 17.5 per cent compared with a year earlier to a historical high of US$33.22 billion in July. Photo: AFP

Published: 12:00am, 11 Aug 2022Updated: 12:48am, 11 Aug 2022

China’s textile and garment industry recorded a surprising surge in export value last month, despite the sweeping United States ban on products from the region that produces 90 per cent of the nation’s cotton.

Monthly exports of textiles and garments beat expectations and increased by 17.5 per cent compared with a year earlier to a record high of US$33.22 billion in July, according to data released by China Customs on Sunday.

The value also increased by 5.3 per cent from June, when Washington’s Uygur Forced Labour Prevention Act came into effect.

But industry insiders said the momentum is not a true reflection of the strength of the industry, as July’s exports were largely from the orders placed months earlier, while the surge may also have been caused by rising prices.

Exports are a lagging indicator of the industry

Alex Chen

“Exports are a lagging indicator of the industry,” said Alex Chen, secretary general of Wenzhou Garment Chamber of Commerce.

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