Jintan Garment Enterprises Are Greatly Influenced By RMB Appreciation.

　 Author in China Foreign exchange spanactions The central official website saw that on the day of the domestic inter-bank foreign exchange market, the central parity rate of RMB against the US dollar was 6.7110, and the rate of continuous foreign exchange earnings has changed to a new high.

According to this trend, the exchange rate has broken through the 6.7 pass. Compared with the binding level of 6.83 during the financial crisis, the current appreciation rate of RMB has exceeded 1.5%.

This year, 1~8 month, Jiangsu Province Jintan The city's export volume reached US $845 million. According to the September 20th middle price of 6.7110, the total export volume will be as high as 8 billion 500 million yuan per year. The huge fluctuation of each exchange rate has made our export-oriented enterprises nervous: the average delivery value of our monthly export is nearly 700 million yuan RMB. If we continue to maintain the range of exchange rate changes last week, the export economy of our city will be reduced by 1000~1500 million yuan.

Textile and garment industry is one of the traditional pillar industries in Jintan. As of August, textile and garment products accounted for 24.92% of the total export volume of the city. "The textile and garment industry has a great impact on the textile and garment industry because of the low added value and the export price changes," said a person in charge of a well-known clothing company in Jintan. RMB rate The change is more sensitive. Especially in the large number of SMEs in the industry, the lack of bargaining power can tolerate a smaller appreciation, so the appreciation of the renminbi will have an adverse impact on the export of the entire industry.

In addition, the raw materials and labor costs faced by the textile and garment industry have been increasing gradually, which has added a pressure to the industry which is already in a low profit state.

In the context of appreciation, enterprises must cut prices if they want to maintain their overseas market share, while the rise in domestic costs will further narrow the decline in the prices of terminal products. The clothing industry claims that under the conditions of internal and external difficulties, the clothing and textile industry will have two choices if it wants to continue to survive and develop. First, it should actively promote product upgrading, develop towards low energy consumption, high added value and brand advantage; two, shift the production chain to developing countries that undertake low-end manufacturing industries by directly setting up factories or outsourcing, so as to maintain low cost production advantages.