2/3 Textile Enterprises At Present Zero Profit

With the cancellation of global textile quotas in 2005, China's clothing exports have increased rapidly.

The high trade surplus made the US and EU frequent restrictions on China's textile exports.

In order to adjust the trade balance and promote industrial upgrading, the export tax rebate rate of some industries has been cut down many times since 2006, in order to reduce the high trade surplus, enhance the competitiveness of export enterprises, and change the business mode of relying solely on cost to win.

At the beginning of the implementation of these policies, the impact on exports was not obvious. However, since the end of last year, with the slowdown of the US economy and the acceleration of RMB appreciation, many enterprises have fallen sharply in a few months.

The export growth rate of China's textile and clothing has been declining this year.

According to customs statistics, Guangdong textile and clothing exports in the 1-5 months of this year amounted to US $11 billion 510 million, down 15.7% from the same period last year, and the growth rate also dropped by 40.3%.

Wang Qianjin, editor in chief of the first textile network, said that at present, domestic 2/3 textile enterprises are operating at zero profit, while 20% of the textile enterprises are in a situation of half production and half stop production.

"Of the more than 80 textile companies, no more than 10 profits are made.

And profitable manufacturers are high-end brand manufacturers such as YOUNGOR (11.69,0.27,2.36%), and profits are also shrinking from last year's total of $3 million.

He said.