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    How To View The "God Growth" Of Textile And Garment Industry In February

    2015/3/25 15:52:00 10

    ClothingExportsExport RebatesDevaluation Of RMB

    January, China's textiles

    clothing

    Exports fell sharply by 10.8% over the same period last year.

    When people had not yet seen the collapse of the January crash, they received the news that the export surged by 99.3% in February.

    From 10.8% to 99.3%, it's like going from bottom to top.

    The heart of a textile worker is also like a roller coaster.

    Should we rejoice? Is the spring of export coming? Will the trend of the future increase significantly as in February?

    Be calm and objective before finding the answer. It may be too early to judge the future.

    First of all, the decline or growth is all compared with the same period last year. From the absolute value of exports in January and February this year, textile and apparel in January

    Exit

    It totals about $25 billion 540 million, while exports in February totaled $21 billion 680 million, down 15%.

    In addition, industry experts also said that because of the year February and the year before and after the Spring Festival, the change of data is also normal.

    Usually before the Spring Festival, businesses in all parts of the country rush to concentrate on shipping, making the first month after the holiday worse.

    In the past few years, most of the Spring Festival appeared in January, so the data in February tend to be "ugly", and the low base is an important reason for the "God growth" in February this year.

    Experts say that one or two months' data are not enough to judge the trend of the industry.

    To study export situation, please take quarterly observations for at least 3 months.

    Nevertheless, the driving force behind data fluctuation is not to be ignored.

    Why is "God growth" coming this year? Besides the low base, I am afraid there are two other important reasons.

    First, starting in January 1st this year.

    Export tax rebate

    In the new deal, the export tax rebate rate of many textile and clothing increased from 16% to 17%.

    Under the bad situation, the adjustment of the export tax rebate rate has greatly relieved the pressure of enterprises.

    In order to enjoy the export tax rebate, some enterprises make a request for postponement of delivery for non urgent orders, because they know that the new deal often has time lag from announcement to implementation.

    From this we can see that our new export tax rebate policy has great significance for the industry, and greatly mobilized the export enthusiasm of enterprises.

    In the current high production costs, they have high hopes for the 1 percentage point increase.

    The second and most important driving force is the depreciation of the renminbi.

    Exchange rate changes have been playing a huge role in import and export trade. Since last year, the RMB has obviously depreciated against the US dollar. In the first two months of this year, the depreciation rate of RMB against the US dollar was almost 1%.

    This is undoubtedly a great advantage for export enterprises.

    Especially in February, the spot rate of RMB against the US dollar approached the limit price several times.

    A number of enterprises surveyed said they expected the textile and garment exports to be exhilarated in the near future.

    The change of exchange rate is probably one of the most mysterious things.

    Devaluation of RMB

    It will last for some time, and with the recent fluctuation of exchange rate, people's expectations are no longer as positive as before. Therefore, this year's overall export trend remains to be seen.

    In a word, you don't have to be too nervous for the big ups and downs.

    Do a good job of your own business, and do well in your products, no matter what circumstances the outside world, good companies can settle down.

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