The situation in the Middle East is turbulent and the silk industry is not affected by cold exports.

The turmoil in the Near East, which began at the end of 2010, has created widespread instability across the region. As protests and uprisings spread, several neighboring countries found themselves affected. In Egypt, mass riots escalated into violent conflict, leading to the resignation of President Hosni Mubarak on February 11, who handed power over to the military. Meanwhile, in Bahrain, pro-Shiite demonstrators continued to take to the streets starting from February 14. In Libya, opposition leader Muammar Gaddafi faced growing resistance, with protests breaking out on February 15. In response to the crisis, China and the European Union activated emergency protocols to assist their citizens in evacuating Libya. The unrest in the Middle East and North Africa not only caused political upheaval but also had significant economic consequences. Global financial markets experienced sharp fluctuations, with oil, cotton, and precious metal prices surging. These price increases inevitably led to a panic in global stock markets. Given the strategic importance of the region in terms of energy and shipping, many industry leaders are concerned that rising oil prices could lead to higher sea freight costs. More worrying still is the potential for inflationary pressures to cause broader price hikes, which could negatively impact silk exports to the Middle East, North Africa, and even the EU. Despite the regional tensions, the domestic silk reel market showed relatively stable pricing. Market demand remained strong, with prices reflecting fundamental conditions rather than being overly influenced by geopolitical events. According to customs data, China's main export markets for silk products include the United States, the European Union, South Asia, and Northeast Asia, with the Middle East and North Africa representing a smaller share. Countries such as Saudi Arabia, the UAE, Iran, Lebanon, Oman, and Malaysia are major importers of Chinese silk products. China's silk apparel, raw silk, and other commodities account for about 1% of total exports in these categories. However, silk satin exports to the region are more significant, with the UAE accounting for 3.26% of China’s total silk satin exports and Saudi Arabia for 0.7%. Overall, imports from North Africa and the Middle East make up roughly 5% of China's silk exports. In the Middle East and North Africa, silk consumer goods such as Persian carpets, tapestries, robes, and shawls remain popular. High-income groups in oil-rich nations have a particular preference for silk clothing. While recent regional tensions may have had some impact on silk exports to the area, the overall effect remains limited compared to the scale of China's broader silk trade. The region's share in China's silk export market is not large enough to significantly affect either exports or the domestic silk industry. On the other hand, positive developments in key consumer markets are helping to offset some of the negative impacts. The Conference Board's Consumer Confidence Report released on February 22 showed that U.S. consumer confidence reached its highest level in three years. With major silk-consuming countries experiencing increased consumer confidence, this could help counterbalance the challenges posed by the Middle East and North Africa market. "Apart from the situation in the Near East and its impact on silk exports, we are more worried about the upcoming small trade fair and the 2,500-ton raw silk tender in India," said the head of a Chinese silk export company. "These are more immediate concerns that could have a direct impact on our business."