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The export value of China's textile and garment industry reached a record US$117.535 billion in 2005 -- an increase of 20.7 percent over the previous year. This figure accounted for 15.4 percent of the country's total export value, reported the China National Textile and Apparel Council (CNTAC) on Monday.

The total export/import value last year was US$134.63 billion -- up 17.9 percent and taking a 9.5 percent share of the overall foreign trade value.

There are five provinces and municipalities whose textile export value surpasses US$10 billion -- Zhejiang, Guangdong, Jiangsu, Shanghai and Shandong. Their combined export value accounts for 76 percent of the country's total.

Renminbi (RMB) appreciation, the increased cost of raw materials and transportation are factors that could hinder further textile export growth. But the highest hurdle to overcome to achieve additional growth is the 'quota system' in operation in China's main export destinations.

Although the global quotas on textile and apparel trade were removed in accordance with the World Trade Organization (WTO) Agreement on January 1, 2005, the US and the EU still imposed quotas on many categories of Chinese textile products. This had stifled further growth since the third quarter of last year. 

The top three export destinations of Chinese textiles are the US, Japan and Hong Kong while the main 'importers' are Japan, Taiwan and South Korea.

(China.org.cn by Tang Fuchun, February 24, 2006)