China has the ambitions to increase the exports of clothing and textiles by 15% in 2007. If that happenes their exports to the world will rise by about 22 bln usdollars.
Are that ambitions covered by the present performance of the chinese industry. As per the figures of their statistics the exports for the period from january to november 2006 in us dollars are:
- Total exports - world - 133.471 bln + 24.6 %
- Exports to USA - 20.371 bln + 15.37 %
- Exports to Japan - 18.025 bln + 8.38 %
- Exports to Hong Kong - 16.351 bln + 21.3 %
- Exports to EU - 20.676 bln + 18.32%
- Total exports non-EU and US - 92,424 bln + 28.38%
The percentage shows change compared to the same period in 2005.
EU is the biggest market for the chinese goods with about 15.5% share before Bulgaria and Romania to join the union on 1st of january 2007. That means that the exports to EU will increase by about 3-3.4 bln usdollars in 2007.
That market share will be on the account of intra EU players and will be mainly in the categories which are still under control - pullovers, blouses, trousers, t-shirts and home textiles.
However we see that the quantitive increase of the Chinese exports to EU is just about 1.5%, which means that China raised price with over 15% in 2006. The trend of price increase will continue in 2007 due to the cut in the chinese export rebate and will slow down the exports in the second half of 2007.
Another reason for Chinese slow down is the need for fast fashion, taking bigger share in the EU trade. The EU imports from the region of the Balkans (Romania, Turkey, Bulgaria, Macedonia and Serbia) increased by about 5% in quantitity.