Chinese Textile Exporters Abandon Dollar Valuation.

More and more textile and garment exporters in China are adopting measures to influence the appreciation of RMB. According to an enterprise survey, most textile exporters are no longer using the US dollar valuation. In order to avoid exchange rate losses, they have adopted non US dollars or even RMB denominated pricing. Even in the US dollar bargaining, the exchange rate has been shortened to 1-2 weeks from the past 1-2 months.

When interviewed by a large textile manufacturer, the company said that the annual export volume of the company was about $30 million, which could be avoided without dollar valuation, but the degree of customer demand and exchange rate loss should still be considered.

Experts say that in addition to abandoning the US dollar valuation, raising the selling price has become the main strategy for the enterprises to cope with the appreciation of the renminbi. However, the price increase needs to be taken into consideration. Because of the fierce competition in the international textile export market, the market for medium and low price products is oversaturated, and the selling price may lose the market. However, China's textile industry is faced with such factors as the export tax rebate reduction, the labor contract law and other policy adjustments, the accelerated appreciation of the renminbi, and the rising cost of raw materials, which have increased the production cost by more than 10%, and can not survive without raising the selling price.

People in the industry say that in fact, foreign customers can understand the policy adjustment, but they can accept that the price increase is limited. Now the price of textile exports in India, Pakistan, Vietnam and other neighboring countries of China is lower, and China's comparative advantage is no longer there. Manufacturers certainly want to raise prices, but there is little room.