In January-June 2011, China's textile industry realized the industrial output value of CNY 2,393.80 billion, increasing by 30% YOY.
Since 2011, China's textile industry has overcome influence of many unfavorable factors such as RMB appreciation, sharp price fluctuations of cotton and other raw materials, rise in the costs of labor and energy and sluggish export market. Production, export and profits grew steadily, but the growth rate showed the momentum of decline and some small and medium-sized textile enterprises faced difficulties in operation.
In 2011, China's textile industry was confronted with an extremely complex macroeconomic environment. Externally, the global economic recovery slowed down. Internally, there were problems such as an increase in interest rates, rise in the deposit reserve ratio and other tight monetary policies, rising costs of production factors and continued appreciation of RMB against the U.S. dollar. Rises in labor costs, RMB appreciation, price fluctuations of raw materials, increases in the loan rate, increased the operation costs of enterprises and influenced the international competitiveness of textile enterprises. In January-June 2011, China's textile and clothing export value reached USD 111.73 billion, increasing by 25.73% YOY, and the growth rate increased by 3.69% over the January-June 2011 period. The main reason for the rise in textile and clothing export value was the rapid rise in export prices.
China has formed a complete textile industry chain and it owns obvious competitive advantages. However, China's textile industry also faces such problems as rises in raw material prices, rises in labor costs made emerging developing countries pose a direct challenge and competition to China's traditional textile and clothing industry (especially for the clothing industry).
At present, China's textile industry still faces such problems as price fluctuations of cotton, increasing pressure of production cost, financing difficulties in textile enterprises and increases in financing costs. It is predicted that the textile industry in 2011 H2 will still maintain the momentum of growth and face intensified risks.