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
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.
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
“Exports are a lagging indicator of the industry,” said Alex Chen, secretary general of Wenzhou Garment Chamber of Commerce.
“The garments exported in July were finished in June or earlier, while the orders might have been placed by downstream clients in the second half of last year.”
Garment exports from Wenzhou, a manufacturing hub in eastern China, increased by 42.55 per cent in the first five months of 2022 compared with the same time last year, according to Chen, but he anticipates increased challenges for the rest of the year.