08 Years, The Overall Export Price Of Textile And Clothing Has Increased By About 7.18%.

Yesterday, China's first textile network chief analyst Fan Min said in an interview that in order to deal with the exchange rate issue, it is expected that in 2008 China's textile and clothing export prices will rise by around 7.18%.

The "made in China" known as "cheap and good quality" is worth "value for money" in the future.

"In order to survive, the company has to raise the price of its products," said the head of a clothing trade company in Beijing who was awarded the textile export to Europe at the beginning of the year.

Another textile company in China said, "foreign customers understand our policy adjustment in recent years, but they can only accept a small increase in price. Our price increase is based on the fact that many customers turn to other countries for procurement."

Because of the fierce competition in the textile export market and the over saturation of the middle and low grade products market, the price hikes will not be profitable, and the market will be lost.

On the other hand, the export tax rebate, labor law and other policy adjustments, the accelerated appreciation of the renminbi, soaring raw material costs and other comprehensive factors have made the textile industry production costs generally rise by more than 10%, without raising prices can not survive.

"When the price of textile exports rises to catch up with the speed of appreciation of the exchange rate, the appreciation of the exchange rate will wipe out the meager profits of the exporters."

Fan Min said, because the appreciation rate of RMB may reach more than 10%, only one appreciation will squeeze about 3% of the profits of the textile and garment industry.

This situation also exists in electromechanical equipment, toy enterprises and other domestic traditional export industries.

//cn.daxia123