Home / Knowledge / News / Textiles / Numerous Chinese textile mills may go bankrupt
Numerous Chinese textile mills may go bankrupt
14
Jul '10
Five percent appreciation of Yuan against dollar may drag half of the Chinese textile mills into bankruptcy, as mills would badly lose their meager margins due to Yuan appreciation. The country is currently experiencing growing world pressure for revaluing its currency.

Profit margins of the country's textile mills are just three to five percent. Those of the labour-intensive textile units will witness one percent decrease with one percent appreciation of Yuan, revealed a Yuan stress test undertaken by the Government in the month of March.

The statistics of the Ministry of Commerce showed that, China's textile industry directly employs over 20 million people, while more 140 million are engaged in cotton farming. So, millions of jobs will get affected with high upward revaluation.

Appreciation of yuan along with rising raw material and labour prices has already reduced profit margins of China's textile companies. During 2005 and 2008, Yuan witnessed 21 percent appreciation against US dollar. And, recent relaxation of restrictions on the appreciation of Yuan, by the country, led to its 6.80 to 6.76 percent appreciation against dollar.

Fibre2Fashion News Desk - India


Must ReadView All

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Global growth to pick up in 2017 and 2018: IMF

The pickup in global growth anticipated in the April World Economic...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


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



X