China'S Textile And Clothing Exports Are Now In The Past.

Appreciation of the renminbi, rising labor costs and rising global raw material prices have made Chinese textile and garment exports difficult in 2008, and manufacturers complain incessantly.

Some people sigh that the Chinese textile and garment industry has been "brakes the brakes" for 8 years.

The Ninth "China Textile and clothing trade exhibition" was launched in New York in June 18th.

China's textile and garment industry, which once once had a great prospect, is no longer seen for two years.

Appreciation of the renminbi, rising labor costs and rising global raw material prices have made Chinese textile and garment exports difficult in 2008, and manufacturers complain incessantly.

Some people sigh that the Chinese textile and garment industry has been "brakes the brakes" for 8 years.

"In 2008, our profit margin was only around 2%," said Zheng Bohua, general manager of Shanghai textile material company, one of the "pillar posts" of the domestic textile industry.

In the 1 quarter of 2008, the appreciation rate of RMB against the US dollar was 4.2%. Zheng Bohua sighed that "when there is a profit, there is still a profit. When the time of delivery, the profit is already negative."

This is not the only problem.

The labor contract law of China was formally implemented at the beginning of the year, and the average labor cost of many textile and garment enterprises increased by more than 2.

In Kampuchea and Vietnam, the skilled workers who earn only 700 yuan to 800 yuan per month need 1200 yuan or even 1500 yuan for clothing enterprises in southern China.

Huang Ying, head of Department of China Textile machinery and technology import and Export Co., Ltd., bluntly bluntly said that the labor contract law is a good guide, but for the current Chinese textile industry, there is great pressure to put it into practice.

Manufacturers seek alternative survival

The current situation of China's textile industry is that in 2007, cotton textile enterprises lost more than 40% of their losses, and the profits of the 60% of the whole industry were below 3%.

A large number of private enterprises have to go out of business to save themselves in order to keep their purse strings.

Huang Ying's Department has shifted its focus from ready-made clothes to fabrics.

This is because Vietnam and Kampuchea, though cheap labor, are far inferior to China in terms of weaving and printing and dyeing technology, and the export fabric of Chinese enterprises still has advantages.

Previously, the profits of export fabrics were much lower than that of garments.

Shanghai textile material company turned to high value-added products.

Shen Quanfang, department head of the new textile import and export company under the company, shows a "fireproof dress" that has been developed for several generations and costs tens of millions.

Shen Quanfang said that the future will depend on this expensive product with patent to reverse the decline.

But for a large number of small and medium-sized enterprises, self-help and pformation are all very difficult.

All sides conspire to defuse the crisis

In June 18th, Wang Tiankai, vice president of China Textile Industry Association, said that he did not agree with the formulation of the "depression of China's textile industry".

Wang Tiankai believes that the domestic demand of China's textile industry is still broad, and 3/4 products are sold domestically, and the reduction of exports has not fundamentally affected them.

But Wang Tiankai also admits that the export is not smooth enough to make the industry "big areas facing survival problems".

He believes that China's textile and garment industry is related to 20 million textile workers and 100 million cotton farmers. I believe the government will not sit idly by.

Wang Tiankai's China Textile Industry Association and many ministries and commissions have appealed for "raising the export tax rebate rate", hoping to make the company breathe.

But it is not easy to do so: with the export volume of China's textile and clothing close to US $170 billion in 2007, raising the 1% tax rebate rate means that the country has to invest $17 billion, which is obviously not conclusive at one fifteen.