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Exporters scout for new trade domains

24
Apr '08
There has been a speculation that in order to compensate the loss resulting from the exchange rate of US dollar, Chinese textile and clothes enterprises have started transacting business in European dollars instead.

Depreciating dollar, rise of labor cost and raw material and reduction of export rebate rate have been severely affecting the profits of local exporters. Ironically, even increasing the export unit prices would not help since that would again increase the cost of goods, making them less price competitive than the supplies made by its competitors from India, Pakistan and Vietnam.

In 2007, Government of China reported that the profit rate of Chinese textile industry was less than 3.7 percent which was just two thirds of the industrial average profit. Experts have pointed out that the textile industry depended too much on imports and fell short of independent innovation.

With continued care and persistent determination, exporters can find a way out to revive the textile industry which is presently in a deplorable plight.

Fibre2fashion News Desk - China


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