Guangzhou Xintang Denim Enterprises Hundred

Xintang Town, Zengcheng, Guangzhou, is the largest export base of jeans in China. It enjoys the reputation of "cowboy watching China and Chinese Cowboys watching Xintang".

When the financial tsunami invaded, almost every link contained the pressure of rising labor.

Xintang town is getting colder this winter, rising raw material prices, rising labor force, appreciation of the renminbi, and shrinking international orders.

Since the beginning of this year, as China's foreign trade has entered a severe winter, the denim industry is facing an unprecedented challenge.

According to statistics, at present, there are more than 2000 denim clothing enterprises and related production enterprises in Xintang Town, and over 60% of all cowboy garments in China are from Xintang.

At the same time, Xintang cowboy exports account for 30% of the total export volume of China.

However, the deterioration of the foreign trade environment has resulted in a sharp shrinkage in export orders while the profits are also being squeezed.

A cowboy clothing workshop owner said that this year's output value should be 40 percent off.

"In the first half of the year, it has been reduced by 90%."

It is reported that not only export sales are shrinking, but domestic sales are also shrinking.

"Almost every day there are business failures," Zhan Xueju, President of the Xintang chamber of Commerce, estimates that more than 100 enterprises have gone bankrupt this year.

"Last week, a factory that had been working for more than 20 years failed."