With the gradual recovery of the global economy, as well asnational support policies for textile and garment industry, the cumulativeeffect is gradually emerging, China's textile and clothing exports are at acrucial stage of recovery stabilizing, but the textile and apparel industry isstill facing the following problems:


First, profit margins have been compressed textileenterprises. In 2009, along with cotton yarn, cotton cloth market conditionsimproved, the domestic cotton demand picked up, prices continue to rise. As ofFebruary 26, the domestic cotton prices had risen to 3 per ton, 14.99 thousandyuan, compared with the beginning of (14,879 yuan / ton) up 0.75 percentagepoints, with the same period in 2009 (11,436 yuan / ton) compared to per ton up3554 yuan, up a rate of 31.08%. Be sluggish in outer circumstances, acceleratethe rising prices of raw materials and end-markets in sharp contrast to lowerprices, corporate profit margins become smaller and smaller. Meanwhile, withthe domestic economy pick up, RMB appreciation will likely be repeated in 2010,which will further reduce corporate profits.


Second, increasing protectionism in international trade.After the outbreak of the financial crisis, governments to protect their ownindustries, by improving the safety, health, environmental standards and totake anti-dumping, countervailing measures, to build barriers to trade, China'stextile and clothing exports face trade frictions become more serious. In 2009,under the framework of WTO trade remedies, foreign exports of textile productsto China to investigate the project and the preliminary ruling had been morethan 30, which involves the chemical fiber filament, staple fiber, curtains,ribbon, blanket, curtains cloth, cotton yarn, bed sheets, linen, narrow loom,etc. from the raw material-to-end range of products. In January 2010, foreigncases on Chinese textile products on the recall of 14 cases, including fivechildren's plush toys, the children's clothing from 9 to inform countries includingthe United States, Canada, Hungary, Turkey, Oliver to other countries. So farthis year by foreign countries against China's anti-dumping, countervailingduty cases, there were more than 10 cases, involving products includepolypropylene, nylon filament yarn, circular looms, polyester staple fiber,weaving, heating pad and so on.


Third, carbon emission targets or restrict China's textile exports into Europe and the United States another pretext. With the global climateconference in Copenhagen, Denmark, the convening of low-carbon economy has beenwidespread concern, the state will have units of pollution emissions and energyconsumption level of more stringent regulation. On the textile and garmentindustry in terms of printing and dyeing industry, companies will have towithstand greater pressures. The same time, developing countries, mainlythrough the international carbon trading (CDM) market mechanisms to participatein international carbon emissions trading, carbon trading in China is at the bottom of the industrial chain, the carbon trading market and the standardsare abroad. In developed countries has long been its technical standards tolimit Chinese textile exports, carbon dioxide emission targets may restrict China's textile exports to become another excuse.


Fourth, after the Spring Festival, to varying degrees to a"labor shortage", Daobi companies follow the trend of salary. Unlikein previous years, this year the workers is not only tight Pearl River Delta,Yangtze River Delta, Anhui, such as areas of traditional labor exports began toappear the phenomenon of shortage of workers, "labor shortage" seemsto become a national issue. In the Yangtze River Delta and Pearl River Delta,many companies have raised wages, lower education, and age limits in order tosolve the employment problem of the shortage. Industry experts believe that, onthe surface, the economy pick up, orders for pick-up is difficult to fuse therecruitment, but the underlying reason is that the era of cheap labor are gone.And labor intensity is not proportional to the low wages of migrant workersless and less attractive, leading to "recruitment difficulties" themost direct reason. The textile industry is the traditional labor-intensiveindustries, "labor shortage" has a number of textile and garmententerprises have become a big problem.



Author is a professional editor from China Manufacturers


Source:www.goarticles.com