In 1998, corporate profit margin of companies involved in exports was over 20 percent, which slipped to 12-15 percent in 2002.

However, margins fell to 5-8 percent before 2008 and further plunged to 3 percent in 2008, the year in which the sub-prime crisis struck.

In 2011, many of these same companies reported zero profit or even losses. Currently, apparel exporters are in panic mode and are either reducing or fully shutting down operations.

Experts widely predict that this year will the most difficult year since the financial crisis. Perhaps, China could even witness a trade deficit this year, as exports would be hit by cold wave. 

Fibre2fashion News Desk - China