China's textile exports in 2010 have totaled nearly 200 billion U.S. dollars. In 2011, the situation for China's textile export enterprises will continue to be difficult as in the previous year; export volume is likely to show single-digit growth. Exporting will no longer be the major profit source for large enterprises; part of SMEs will face severe survival challenges.

The year 2010 is faced with high costs, enlarged exchange rate fluctuations, expanded debt crisis from Europe as well as many other negative impacts, yet the textile exports have undoubtedly remained double-digit growth. The year 2011 will see more export difficulty, which can leads to the slowing down of growth.

After the outbreak of financial crisis, western countries terminated the de-inventory process, and brought up an explosive increase in demand due to inventory refilling; all of this has caused the increasing trend of exports in 2010, but this effect is short-term based and would not continue, while the actual consumer purchasing power is yet to recover. Exports in 2011 will clearly see the lack of such tensioned demand pull, and will change from rapid recovery growth to the range of normal development.

Raw material prices continue to see frequent ups and downs, coupled with the uncertain prospects of RMB exchange rate appreciation, which means a greater market risk for China. Inevitably, the export orders will shift to Southeast Asia. The textile industry in 2011 expects Chinese government to pay more attention to labor-intensive industries, and to make proper policies guiding and regulating the raw material prices.