According to the statistic from China Customs, export volume of apparel in March 2006 and from January to March amounted to 10.5 billion US dollars and 27.3 billion US dollars respectively, up by 33.96% and 22% year on year. The total increase of export volume of apparel from January to March is up by 3% comparing with the same period last year.

It indicated the active increase of export of apparel in the first quarter of 2006 and also predicted the export volume in April would not be lower than 10 billion US dollars. It was also obvious that macro governing would apply if GDP and credit keep on fast increasing. The pressure of appreciation of RMB and instability of trade environment would be caused by the high trade surplus as well. Therefore, the textile and apparel export in 2006 is not optimistic to maintain the 18% increase as predicted. Loosen the investment would ease the conflict between demand and supply. Since the cost of enterprises was comparatively fixed as the price of cotton in China was stable and there was a great complementary import of cheap cotton, we still maintain the optimistic prediction on the stable increase of enterprises' profit.