Home / Knowledge / News / Textiles / RMB appreciation alarms textile sector of likely recession
RMB appreciation alarms textile sector of likely recession
16
Apr '08
RMB appreciation has virtually paralyzed the textile industry and the situation is likely to worsen if the trend is allowed to continue for even a little longer.

Expert estimates show that with every one percent appreciation of RMB, profits of the export products would decline to a certain level. Individually, textile industry would see a drop of 12 percent, wool industry of 8 percent and apparel sector of 13 percent.

Being the highest revenue earner, the garment industry is bound to suffer greater losses. Moreover, large companies with higher profit margins may only face a marginal loss but with increased revaluation of RMB, the extent of negative effects is sure to get expanded.

Professor Wang Kangmao of East China College of Political Science and Law anticipated a drop of 30 percent in textile exports if RMB appreciates by 3 percent. The brutal consequences of such negative trend will largely be borne by SMEs relying on low value-added products and low price competition.

These small enterprises will have no other alternative but to head for a closure throwing thousands of people out of work.

One of the major advantages of RMB appreciation is that it will help check the prevalent inflation of China. An increase of 10 percent in RMB will relatively increase the prices of certain commodities by 10 percent.

On the other hand with similar assumptions, export of Chinese products will drop by 4 percent. Already, under present situation, textile and apparel exports are witnessing a recession.

Fibre2fashion News Desk - China

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search