According to the latest data from the General Administration of Customs, China's textile and clothing exports reached a record high in 2010, totaling USD 206.5 billion, marking a year-on-year increase of 23.59%. Among this, textile exports amounted to USD 77.05 billion, rising by 28.4%, while apparel and accessory exports reached USD 129.48 billion, showing a growth of 20.88%. In December alone, textile and garment exports totaled USD 19.92 billion, up 4.72% compared to the previous quarter. Textile exports rose by 4.22% year-on-year to USD 7.37 billion, while apparel and accessories exports increased by 5.02% to USD 12.54 billion. Preliminary estimates from the China Textile Industry Association suggest that the output value of large-scale textile enterprises in 2010 exceeded 4 trillion yuan, with profits expected to surpass 200 billion yuan. Analyst Wang Qiang noted that since early 2010, the growth of China’s textile and clothing exports reversed from negative to positive, showing consistent improvement. If measured in foreign currency, the export growth has reached its highest level since the exchange rate reform. The surge in textile and apparel exports can be attributed to the gradual recovery of global markets and increased demand as buyers replenished their inventories. Additionally, industrial restructuring and technological upgrades have contributed to improved efficiency and competitiveness. However, the industry also faced challenges in 2010. Domestic labor costs rose by 20%-40%, while raw material prices surged by 30%-100%. Following the second round of exchange rate reforms, the renminbi appreciated nearly 3%, leading to a sharp rise in production costs. Export prices, however, remained stagnant, as many foreign buyers were unwilling to accept price hikes above 20%. As a result, some European and American customers began shifting purchases to Southeast Asian countries, especially for low-end products. Wang Qianjin predicts that during the 12th Five-Year Plan period, China’s textile exports will maintain an average annual growth rate of 5%-8%. By 2015, the total value of textile and garment exports is expected to reach between USD 250-280 billion. Value-driven growth is set to become a key factor in sustaining the industry's expansion in the coming years.