According to Chinese customs statistics, from January to June this year, China's clothing exports (including clothing accessories, the same below) totaled US\$76.8 billion, a year-on-year decrease of 4.1%. June's exports reached US\$15.42 billion, a year-on-year decrease of 14.4%, with the decline expanding by another 2.2 percentage points compared to the previous month. Despite facing many unfavorable conditions, such as weakening demand in major global markets and supply chain adjustments, China's clothing export industry still maintains a competitive advantage, expanding into emerging markets, creating new trade models, and stabilizing export volume. Compared to the pre-pandemic period, clothing exports remain at a historically high level, increasing by 21.2% compared to the first half of 2019.
China's Clothing Exports from January to June Multiple Factors Lead to Widening Export Decline
The widening year-on-year decline in clothing exports is mainly driven by four factors. First, the high base of the same period last year, as June 2022 saw a faster recovery in production after the pandemic. Second, the end of the effect of accumulated orders from previous periods. Concentrated shipments in March and April led to double-digit export growth that significantly exceeded market expectations, but starting in May, the shipment of accumulated orders ended, and exports entered a downward trend. Third, overseas demand is still slowing down, although the speed and extent of the slowdown were unexpected. Fourth, the global supply chain landscape is adjusting faster, leading to significant changes in China's export structure, with a noticeable decline in exports to traditional markets such as the United States and the European Union.
Woven Clothing Exports Better Than Knitted Clothing
Woven clothing has relatively complex processes, high product added value, and a lower degree of industrial transfer than knitted clothing. Its export volume and growth rate are both better than knitted clothing. From January to June, woven clothing exports reached US\$33.76 billion, a slight decrease of 0.1% year-on-year; export volume was 6.16 billion pieces, a year-on-year decrease of 2.1%; and export prices increased by 2% year-on-year. Knitted clothing exports totaled US\$33.3 billion, a year-on-year decrease of 7.9%; export volume was 9.98 billion pieces, a year-on-year decrease of 6.3%; and export prices decreased by 1.8% year-on-year. Clothing accessories exports reached US\$7.39 billion, a year-on-year increase of 2.6%.
Exports of Cotton Clothing to US and Western Markets Accelerate Decline
The United States is accelerating the "de-Chinaization" of cotton products, which not only seriously affects China's cotton product exports to the US but also has a negative impact on major markets such as the European Union and Japan. From January to June, China's exports of cotton knitted clothing reached US\$12.9 billion, a year-on-year decrease of 15.2%; exports of cotton woven clothing reached US\$10.59 billion, a year-on-year decrease of 4.5%. Exports of cotton knitted and woven clothing to the United States decreased by 32.7% and 24.3% respectively, to the European Union by 30.3% and 24.8% respectively, and to Japan by 26.1% and 20.3% respectively. The export volume of chemical fiber clothing has far surpassed that of cotton clothing and continues to grow. From January to June, exports of chemical fiber knitted clothing reached US\$16.28 billion, a slight decrease of 2.6% year-on-year; exports of chemical fiber woven clothing reached US\$19.48 billion, an increase of 4.2%.
Mixed Performance in Major Export Categories
From January to June, exports of suits and casual sets increased by 7.6%, scarves/ties/handkerchiefs increased significantly by 20.1%, and bras and socks both increased slightly by 1%. Other major clothing categories saw declines of varying degrees, with sweaters, underwear/sleepwear, sportswear, and infant clothing experiencing larger declines of 12%, 9.1%, 9.9%, and 21.9% respectively.
Emerging Markets Show Strong Performance, Traditional Market Share Gradually Decreases
Affected by the international trade environment, China's clothing exports are undergoing structural adjustments. The export share to the United States, the European Union, and Japan is gradually declining, while exports to emerging markets such as ASEAN, South Korea, Australia, Russia, and Central Asia are showing strong performance, gradually becoming new highlights driving foreign trade growth.
From January to June, China's clothing exports to Western developed economies (US, Canada, EU, Japan, Australia, New Zealand) reached US\$43.54 billion, a year-on-year decrease of 14.4%; accounting for 56.7%, a year-on-year decrease of 6.8 percentage points. Exports to the United States reached US\$15.93 billion, a year-on-year decrease of 17.9%; accounting for 20.7%, a year-on-year decrease of 3.5 percentage points. Exports to the European Union reached US\$12.88 billion, a decrease of 18.9%; accounting for 16.8%, a decrease of 3 percentage points. Exports to Japan reached US\$5.88 billion, a decrease of 8.7%; accounting for 7.7%, a decrease of 0.4 percentage points. Exports to ASEAN reached US\$8.21 billion, a significant increase of 15.6%. Since last year, ASEAN has surpassed Japan to become China's third-largest clothing export market and the only one of the four major clothing export markets to achieve positive growth, accounting for 10.7%, a year-on-year increase of 1.8 percentage points.
From the perspective of major regional markets, from January to June, exports to countries along the Belt and Road reached US\$22.12 billion, an increase of 16.8%. Exports to RCEP member countries reached US\$20.66 billion, an increase of 5.5%. Exports to the six Gulf Cooperation Council countries reached US\$2.7 billion, an increase of 1.1%. Exports to Latin America reached US\$4.32 billion, a decrease of 3.3%. Exports to Africa reached US\$4.9 billion, an increase of 31.2%. Exports to the five Central Asian countries reached US\$5.41 billion, a significant increase of 37.6%, with exports to Kazakhstan and Tajikistan increasing significantly by 199.8% and 109.2% respectively.
From the perspective of major individual country markets, exports to South Korea, Australia, and Russia reached US\$3.36 billion, US\$2.88 billion, and US\$1.98 billion respectively, with increases of 14.2%, 4.4%, and 44.2% respectively; exports to the United Kingdom and Canada reached US\$2.1 billion and US\$1.22 billion respectively, with decreases of 21.7% and 19.4% respectively.
Rapid Growth in Exports from Central and Western Regions, Decline in Proportion from Eastern Provinces and Cities
From January to June, the top five export regions all showed a downward trend. Zhejiang's exports reached US\$16.33 billion, a slight decrease of 0.4% year-on-year; Guangdong, Jiangsu, Shandong, and Fujian's exports reached US\$12.36 billion, US\$9.13 billion, US\$8.59 billion, and US\$7.06 billion respectively, with year-on-year decreases of 12.9%, 18.9%, 2.6%, and 11.6% respectively. The combined share of the top five export provinces and cities accounted for 69.6% of the national total, a year-on-year decrease of 3.6 percentage points. The combined exports of the 20 provinces and cities in central and western China increased significantly by 21.8%, accounting for 21.1% of total exports, an increase of 4.5 percentage points. Among them, Xinjiang, Hubei, Guangxi, and Sichuan exported US\$5.27 billion, US\$1.4 billion, US\$1.35 billion, and US\$1.35 billion respectively, with increases of 53.7%, 30.1%, 149.7%, and 59.3% respectively.
China's Market Share in Developed Countries Continues to Decline
The trend of order transfer from the US and European countries is obvious, and China's share of clothing imports in developed countries has further declined. From January to May, China's share of US clothing imports was 19.8%, a year-on-year decrease of 2.1 percentage points; its share in the EU was 24.7%, a decrease of 2.1 percentage points; its share in Japan was 51.5%, a decrease of 3.1 percentage points; its share in the UK was 21.8%, a decrease of 2.1 percentage points; its share in Australia was 59.5%, a decrease of 2 percentage points; and its share in Canada was 28.1%, a decrease of 1.7 percentage points. Among developed markets, only the market share in South Korea increased, reaching 32.5% from January to May, an increase of 1 percentage point.
