France Focuses On Textile Industry In China

In April 7th, a survey released that, in order to compensate for the losses caused by the US dollar exchange rate, most of China's textile export factories began to use the euro instead of the US dollar for foreign exchange settlement.

The report said that because of the depreciation of the US dollar, the rise in labor costs and raw materials and the decrease in export tax rebates, Chinese exporters were very concerned about their profit reduction.

But in the face of price increases and competition and challenges from Asian counterparts in India, Pakistan and Vietnam, these losses can not be made up.

The report said that in early 2007, the official website of China reported that its profit surplus in textile industry was less than 3.7%, which was about three points two of the industrial average profit.

At that time, the reason was attributed to the appreciation of the renminbi, the reduction of export tax rebates and the increase of environmental restrictions, but at the same time, it was emphasized that the textile industry was too dependent on imports and lack of independent innovation capability.