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Yuan Revaluatin Impact of the Textile Industry in Zhejiang Province and Countermeasures

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Yuan Revaluatin Impact of the Textile Industry in Zhejiang Province and Countermeasures
yuan revaluatin impact of the textile industry in Zhejiang Province and Countermeasures
Abstract: The appreciation of yuan in Zhejiang textile Industry is a "double-edged sword." In this paper, both negative and positive aspects of their analysis of the impact proposed to overcome its negative impact on some of the feasibility of countermeasures. Keywords:: RMB appreciation impact of countermeasures, Zhejiang textile Industry Since at 19 o'clock on July 21, 2005 onwards, China began to implement a market-based, with reference to a basket of currencies in a managed floating exchange rate system. Immediate appreciation of the RMB against the U.S. dollar the day 2%, or 1 U.S. dollar to 8.11 yuan. This change in exchange rate regime indicates that: the future of China's exchange rate reform will be further deepened, the appreciation of the yuan is expected to continue. Insiders estimate that the yuan could appreciate by 10%. In a sense, the result of revaluation of capital costs and revenue enhancing long-term change in China's Economic structure, to restore the growth rate of different industries, different sectors of the enterprise performance and make any division. For the textile industry, the impact of RMB appreciation can not be belittled. According to the research, if the yuan appreciated 5% ~ 10%, the textile Industry profit margins will drop 10% to 60%. In particular, a high degree of dependence on the export garment industry more damage. Zhejiang province, as a textile and garment, its appreciation of the textile industry in the exchange rate adjustment can be described as a great influence. An appreciation of the renminbi to the textile industry of Zhejiang Province (A) the negative impact of 1. "Capacity to run the main" Business model may not be broken, the declining trend in growth rate of textile exports On the one hand, will continue to "run quantity-based" business model. 2006 1 April, Zhejiang textile and garment export performance of enterprises
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