If RMB Appreciates &Nbsp, China'S Textile Exporters Will Face Disaster.

Chen Shujin, vice chairman of the China Textile Industry Association, said on Monday that if the RMB exchange rate appreciates, Chinese textile exporters will go bankrupt and enterprises will not be able to bear it.

He told Reuters on the sidelines of the meeting that he had not heard about the RMB exchange rate pressure test, but the textile industry, as a traditional export industry in China, was "afraid" of the appreciation of the renminbi.

"Once the value is appreciated, our exporters will not be able to pass it.

If you increase 1%, we will cut 1%, which is very fierce. "

Chen Shujin said that the profit margin of China's textile industry is relatively low at present, only around 4%.

Zhang Wei, President of the China Council for the promotion of international trade, said recently that the appreciation of the renminbi is a disaster for China's labor-intensive export enterprises.

Exporters of labour intensive industries, such as clothing and furniture manufacturing, earn a minimum profit margin of 3%.

The recent dispute between China and the United States on the value of the renminbi has escalated.

US Congressmen say that if the Chinese government does not allow the renminbi to appreciate, it will raise tariffs on Chinese products.

The Chinese Vice Minister of Commerce, Zijin Mountain, said earlier that during the visit to the United States, China and the United States maintain the basic stability of their currencies in a responsible manner. It is very important for the current global economic recovery to remain unstable, and it is wrong to force the appreciation of the renminbi.

The semi annual exchange rate report will be issued by the US Treasury in April 15th or will label China as a currency manipulator. This will bring greater pressure to China and deepen differences between China and the United States.

Since the middle of 2008, the exchange rate of RMB against the US dollar has basically stabilized at 6.83.