Chinese textile and clothing exports increased by 11% in the first six months of 2008 although EU imports from China rose by only 5.1% and US imports from China increased by just 0.7%. As a result, domestic output grew by a smaller margin than in the past. Textile imports fell, implying weaker activity in textile and clothing manufacturing although clothing imports soared by 25%.

In South-East Asia, textile and clothing exports from Indonesia expanded only moderately during January-September 2008 as US imports from the country decelerated and EU imports declined. At the same time, domestic demand for textiles and clothing within Indonesia surged. In Malaysia textile and clothing exports declined by 3.2% in 2007 after growing in the previous two years. The importance of the sector has declined in recent years, but the Malaysian government has provided a guide for textile and clothing producers which aims to develop the industry further.

Its objectives include the promotion of investment in the sector and the promotion of exports in targeted areas. In the Philippines clothing exports were particularly lethargic during January-September 2008 in the face of fierce competition from China and several other low cost Asian producers. In Thailand, however, clothing exports grew during the period following a drop a year earlier. Exports from Vietnam, meanwhile, soared in the first ten months of 2008 and the industry is expected to meet, or even surpass, its US$9,500 mn target for the whole of 2008.

In South Asia, Bangladesh has performed well in the post-quota era, despite fears that it would suffer in the face of competition from China and India. In the 2007/08 financial year, which ended on June 30, 2008, clothing exports rose by 16.2% while production of clothing, leather goods, jute goods and cotton was up by 10.7%. India's textile exports grew by a vigorous 16.7% in 2007/08 but its clothing exports expanded by a slower 6.8%. Pakistan's textile and clothing exports declined by 2.3% as a result of significantly weaker demand in the EU and the USA. Sri Lankan exports, meanwhile, grew by 8.5% in 2007 but by a more modest 3.7% in the first four months of 2008. The industry is being helped by a gradual shift to the manufacture of higher added value products.