Home / Knowledge / News / Textiles / Exporters bear bitter upshots of US credit crisis

Exporters bear bitter upshots of US credit crisis

18
Apr '08
US credit crisis has played its part in dampening the enthusiasm of thousands of Chinese exporters, who are pessimistic about the ongoing biannual Canton fair being held in Guangzhou City of Guangdong Province.

Although, it is still too early to predict the outcomes of the exhibition, domestic manufacturers and traders have witnessed a sluggish growth in the orders placed by purchasers. Infact, some of them have also witnessed a drop in their business compared to the previous year.

Cao Xiaojian, Vice Chairman of Jiangsu Shuntian Co Ltd stated at the fair that export orders in the first quarter of 2008 surprisingly fell to as low as 20 percent from 140 percent in the same period of last year.

On the other front, the unbridled rise in yuan has done the remaining bit to make matters worse. With every one percent increase in the currency, sales profit of the manufacturers and traders would witness a drop of 2-6 percent. Nearly a quarter of factories under the largest Chinese textile enterprise have been devastated by such vicious circumstances.

Experts have observed that the most ravaging effects are the consequences of lower external demand on small and middle enterprises. Reports brought in by industrial sources show that of the 100 clothing manufacturing units in Zhoucun District, only 70 commenced operations after the Spring Festival this year.

Statistics show, that the increase in exports of machinery products slowed to 18.9 percent in 2007, down from 26.4 percent in 2006. Growth is likely to slow even further this year.

Starting from January to March this year, total exports of China rose by 21 percent to US $206 billion, 6.4 percentage points lower than the previous year.

Although exports to US grew 5.4 percent to 53 billion yuan, it was still 15 percentage points lower than the same period last year.


Must ReadView All

Pic: Shutterstock

Textiles | On 12th Aug 2020

Chinese textile companies' revenues decline in H1

Revenues of major Chinese textile companies with an annual turnover...

Pic: Shutterstock

Textiles | On 12th Aug 2020

Bangladesh's BEZA, Yabang Group sign land lease agreement

Bangladesh Economic Zones Authority (BEZA) recently signed a land...

Pic: BAIRD GROUP

Retail | On 12th Aug 2020

UK's Baird Group unveils CVA proposals

The Baird Group is the latest UK retailer to launch a company...

Interviews View All

C. Dhandayuthapani, Mag Solvics Pvt. Ltd

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Karel Williams, Dow Microbial Control

Karel Williams
Dow Microbial Control

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

Top executives, Textile industry, India

Top executives
Textile industry, India

The event should be organised every year

Paolo Crespi,

Paolo Crespi

Japan's Epson, a leader in digital textile printing, Italy's For.Tex, a...

Amol Bhagwati,

Amol Bhagwati

A textile finishing solution provider, Inspiron Engineering Private...

Zillur Rehman,

Zillur Rehman

Cornerstone Systems offers consultancy to businesses for enhancing their...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

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

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Igor Chapurin, Chapurin

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

Leave your Comments


August 2020

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


Advanced Search