At the ongoing China Import and Export Fair, China's textile industry is feeling the pinch. Business is not as brisk as before. That's because price hikes for raw material, increased labor costs, and the RMB appreciation are all eating into exporters' margins.
Textile and clothes enterprises say their profit has dropped by nearly half in the first quarter of this year. Most enterprises have had to adjust their price three to five percent higher than previous quotes as production cost rises.
Industry insiders say although textile export to the United States has dropped in the past five months, demand from Europe and the Middle East are actually increasing. Insiders predict that China's textile products exports will continue to grow, but at a slower pace of around 13% compared to 17% last year.
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