The Pain Of RMB Appreciation: The Textile And Garment Industry Is Under Great Pressure.

"If RMB appreciates by 2%, after the apportionment with the customer's price, fold into each item of clothing.

A pair of export jeans, which sell for 8 dollars, is being eaten up by a variety of rising costs, and only a few cents are left. Once the appreciation of RMB exceeds 5%, its "home" - export processing enterprises will be abandoned because of its inability to digest costs.

RMB appreciation is like a double-edged sword.

"Any further appreciation of the renminbi will be possible.

In January 30th, the national development and Reform Commission Industry Coordination Division published an article saying that under the influence of multiple unfavorable factors, the economic operation of China's textile industry this year will maintain a steady growth.

The pressure of RMB appreciation will become one of the unfavorable factors, which will weaken the competitive advantage of China's textile and apparel in the international market.

Gao Yong, vice chairman of the China Textile Industry Association, said in an interview recently that the average net profit margin of the entire textile industry is now at 3%~4%, and will not exceed 5%. If RMB appreciation exceeds 5 points, more than half of the enterprises will be strongly affected.

If the import quota of cotton in the future is not properly liberalized, then the textile industry may lose a large number of orders after the appreciation of the renminbi, and the average profit will return to zero.

Not only the textile and garment industry, toys,