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Monday, 17 April 2023 00:09

What led to the unforeseen surge of YoY 19.7 % in China's T&A exports in March?

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China's textile and apparel exports showed an unexpected surge in March, with a year-on-year increase of 19.7%, leaving industry experts to wonder about the reasons behind the growth.

This positive development is particularly noteworthy given the concerns expressed by the industry in the first quarter about the significant drop in export orders. The growth is primarily attributed to a 31.9% increase in the export of garments and accessories, while yarns, fabrics, and related products also experienced a modest rise of 9.1%. However, the exact factors contributing to this unexpected rise are not entirely clear.

Some market observers believe that the epidemic prevention and control policy, which led to an increase in orders, played a role in the rise. However, the outbreak of the virus in December and the Spring Festival in January affected domestic production and overseas orders, which might not have been reflected in the data until March.

On the other hand, some experts believe that the stock of fabric and apparel enterprises was not extensive, and there was demand for replenishment overseas, which further stimulated the downstream production in China. It is also possible that the downstream fabric mills resumed works after the Lantern Festival, leading to a wave of hot sales.

Furthermore, cross-border e-commerce orders also received positive feedback, providing a significant boost to terminal exports. However, it is difficult to account for the 32% growth in apparel exports, despite the above-mentioned reasons. As a result, industry experts believe that it is essential to monitor the trend in the coming months to see if the growth continues or if it was a temporary phenomenon.

The monthly export report and detailed data of exports issued by China customs in late March will provide a better understanding of the situation. Additionally, China's future textile and apparel exports to Europe, the US, and Japan will help confirm whether the export growth will sustain or not.