China's exports saw a sharp increase in 2010, including clothing. Textile and garment exports showed positive figures in December, 2009, foreshadowing a promising export market in 2010. China's exports have been on the mend since Q1 2009. According to statistics from Chinese Customs released recently, December textile and garment exports increased 4.48% from the same period a year earlier, the first time the year it turned positive.
The elimination of quotas of the Agreement on Textiles and Clothing (ATC) on January 1, 2005, brought about the end of decades of quantitative restrictions on the international exchange of clothing and textiles. Trade analysts around the world expected that the final lifting of import limits would foster increased growth in clothing and textile trade, as well as a restructuring of clothing and textile production. In particular, some market watchers predicted a dramatic shift of clothing and textile production to China at the expense of many other nations.