With the RMB appreciation and lowering of export rebate rate Chinese textile and apparel products are struggling in the export market. Even though shipments from the country have increased, profit margins of the exporters have gone down.
Few enterprises are earning profits as low as 3 to 5 percent and many others are reaping zero profit or even facing losses. Experts believe that although a rise in the textile exports can be observed, that does not mean that export situation for the industry is good, however, Chinese textile exporters have no choice.
According to a textile export company, profit margins will gradually decrease in the future because of new rules like EU REACH. But companies cannot divert to other businesses as a lot has been invested here, and if they give up at this point the losses will be unbearable.
Few enterprises are earning profits as low as 3 to 5 percent and many others are reaping zero profit or even facing losses. Experts believe that although a rise in the textile exports can be observed, that does not mean that export situation for the industry is good, however, Chinese textile exporters have no choice.
According to a textile export company, profit margins will gradually decrease in the future because of new rules like EU REACH. But companies cannot divert to other businesses as a lot has been invested here, and if they give up at this point the losses will be unbearable.
