China’s export machine accelerated sharply in June ****, but finished clothing remained on the margins of the boom. While China’s dollar-denominated goods exports rose ** per cent year on year, textile exports increased **.* per cent and apparel only *.* per cent. Across the first half, textiles gained *.* per cent to $** billion, while apparel slipped *.* per cent to $**.** billion.
The divergence points to a structural change with consequences far beyond Chinese garment factories. China is becoming less dependent on exporting finished clothing, yet it is retaining a powerful position in the yarns and fabrics used by apparel-producing competitors.
China’s textile and apparel exports reached $***.** billion in ****, only modestly above their **** level of approximately $***.** billion. Over the same decade, total merchandise exports rose from about $*.** trillion to $*.** trillion.
Textiles and apparel consequently fell from roughly **.* per cent of China’s exports in **** to *.* per cent in ****. Apparel alone declined from about *.* per cent to * per cent.
