The Impact Of RMB Appreciation On Chemical Fiber Textile Industry

1.

China is currently the leader of the world's textile giants. Under the influence of the international financial crisis, not only the export has declined, but also the pressure of RMB exchange rate appreciation has made the traditional export industry difficult.

In the first half of the year, a senior industry veteran admitted that China's textile industry, generally speaking, the current product profit is around 5%, which is still relatively good, most of which can be controlled at 3%.

If RMB appreciation is 1% now, nearly 20% of the enterprises have reached the extreme point of the profit balance point.

If the renminbi appreciates by 5%, he estimates that more than half of the enterprises are facing bankruptcy.

Second, the appreciation of the renminbi has weakened the export competitiveness of textile products.

In the case of RMB appreciation, the relative price of China's textile products in the international market has increased, and it has become more difficult to sign the bill with foreign merchants. The export sales revenue has declined, leading to some export enterprises turning to domestic sales, thus aggravating the competition of domestic textile enterprises.

At the same time, the rise in prices has also led to the loss of orders.

At present, many foreign orders have been sent to rival countries such as Vietnam, Kampuchea and India.

2.

In 2009, China's textile and apparel exports totaled 171 billion 332 million US dollars, accounting for 14.26% of the total export volume of our country. The textile industry, as an obvious competitive industry with international competitive advantages, has always been an important part of China's exports of goods. The stability of the RMB exchange rate is particularly important for the growth of textile exports.

In the first half of this year, the Ministry of Commerce made a stress test of RMB appreciation.

The results show that the RMB appreciation will be 1 percentage points while the cost and price of other production factors remain unchanged, and the profits of textile and garment export enterprises will also be reduced by 1%.

Exchange rate losses are rigid losses, and can not be digested through consultation with customers and improvement of supply chain management.

3, employment impact

Last year, China's total export textile industry was nearly $18 billion.

In general, thousands of workers may lose their jobs at a reduced cost of one hundred million dollars. If the renminbi continues to appreciate, the industry's ability to bear may be lower and lower.

Textile and clothing is a labor-intensive industry with at least 25 million jobs and 80% of them are migrant workers.

This does not include other enterprises under the scale, as well as enterprises outside the textile and garment industry.

At the same time, the textile industry digested nearly 10 million tons of cotton, wool, linen and silk natural fibers in the year of agriculture, benefiting 100 million farmers.

The problem of employment is directly related to social stability, which is the biggest threat to the textile industry caused by the appreciation of RMB.