China's garment exports drop 15% in June

11 July 2008 10:34  [Source: ICIS news]

SHANGHAI (ICIS news)--The value of China’s garment exports plunged 15% year-on-year in June to yuan (CNY) 9.87bn ($1.44bn), according to China Customs, the sharpest drop in 2008.

First half garment export growth slowed to 3.4% year-on-year compared with an increase of 12.7% in the first half of 2007. China’s first half 2008 garment exports were worth CNY49.96bn.

There was no official announcement on a rumour, circulating since early 2008, that China would hike export tax rebates on textiles and garments.

Export tax rebates could possibly increase from the current 11% to 13% and 15% for textiles and garments respectively, a polyester producer in China said, adding that an announcement would be made in late July.

“The textile industry will likely recover to a certain extent if the policy is approved by the government,” an upstream producer said in Mandarin.

“However, it is difficult to say if the policy could save the textile industry in the light of rising feedstock values, high energy costs and Chinese currency appreciation,” he added.

China’s cut in the export tax rebate for textiles and garments by two percentage points to 11% on 1 July 2007 hit the labour-intensive industry hard.

($1 = CNY6.84)

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By: Tina Liu
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