The Main Problems Faced By The Textiles And Apparels Export In China At Present

    As the traditional labor intensive export products, the textiles and apparels always occupied the international market relied on the price advantage. However, since 2010, the cotton stock supply was tight in the world, the cost of raw materials and workforces increased rapidly, various technical trade barriers and the trade protection like recall emerged frequently, it made the textiles and apparels industry faced the pressure never undergone.

    First, the RMB exchange rate changed dramatically. Influenced by the quantitative and easing monetary policy of the FED, the RMB speed up the appreciation and the export pressure in China enhanced. In 2010, the middle price in the yuan against the USD rose to 2055 base point accumulatively; the exchange rate increased 3.01%. It is estimated that once the RMB exchange rate increased 1%, the profit of textiles and apparels enterprises would drop 6% at least. It is terrible to the traditional textiles and apparels enterprises whose average profit is less than 10%. The continuous appreciation of RMB made traditional textiles and apparels enterprises undergo more pressure, and the export superior of them decreased more.

    Second, the labor cost increased rapidly. Because the CPI increased, the cost of living increased and the labor cost increased, difficult of employing became the main problem of enterprises. It is estimated that the domestic labor cost of textiles and apparels industry increased 20%-30% averagely, the factories in Jiangsu, Zhejiang employed just 70%-80% workers of last year, some were just less than 50% of last year.

    Third, the price of raw materials increased dramatically. The cotton cultivated area decreased in China, 2010 and the cost of textiles industry increased continuously. Meanwhile, the international cotton price increased dramatically, and the purchasing cost of imported cotton enhanced.

    Fourth, the international trade friction is frequent. It is estimated that tough the export volume of china was less than 10% of global volume, 47% of new launched trade remedy survey and 82% of finished cases were towards China. The more and more international trade frictions restricted the export of textiles and apparels in China and increased the export risk of enterprises.