China's total apparel production during the January through February 2007 time period reached 2.665 billion pieces, which represented a very strong 18.0 percent increase from year-ago levels. This growth was led by a surge in knit apparel production and a rebound in the children's apparel sector. Knit apparel production increased 28.8 percent to 1.433 billion pieces, while woven apparel output only grew at a 7.5 percent rate, reaching 1.216 billion pieces. The children's apparel sector, which experienced a substantial downturn in 2006 output, posted a 19.1 percent rebound, with production at 55.9 million pieces.

The pace of growth in both domestic apparel retail sales and exports exceeded the growth rate in production, which should have left manufacturers with low inventories. The ability of exporters and domestic producers to raise prices has also helped the sector.