Domestic
Textile face triple preesure export profits slashed
Suffering:
Steady high appreciation of the RMB.
Since the central bank reiterated the reform, the RMB central parity rate against the U.S. dollar was continuing upward.
Distress:
Raw materials keeps "up".
Raw material prices and rising labor costs in the textile export enterprises have always been the agony which is unable to escape.
Pressure:
Euro crisis continues to deepen
From the beginning of the year to June 25, the euro's depreciation against the RMB rate has reached 14.73%. Some experts pointed out that by the current uncertain economic situation of the EU, the "turning point" of the growth of Chinese textile and apparel exports to the EU may appear. Although 90% of Chinese textile and garment exports are in U.S. dollars and effect of the depreciation of the euro is limited. But with the European sovereign debt crisis widening the adverse effects, the impact is still difficult to predict.
From: www.tnc.com.cn
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