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

Topics: International trade, Foreign exchange market, United States dollar Pages: 7 (2539 words) Published: April 29, 2013
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 5488, an increase over the previous year 394. Among them, the private sector 2789, 1940 foreign-invested enterprises, collective enterprises, 411, 340 state-owned enterprises, individual industrial and commercial households 9. Over the same period, foreign-invested enterprises in textile and apparel exports 2.247 billion U.S. dollars, an increase of 35.4%, private enterprises exported 2.08 billion U.S. dollars, an increase of 64.4%. However, the number grew faster than price increases, Zhejiang's textile and apparel export price index was 1.05 over the same period, the number of index 1.24, that is, the average export price increase of 5%, export volume growth of 24%. Tax textile export price index is 1.07, the number of index 1.15. On the other hand, with "running volume-based" mode of operation of Zhejiang textile exports growth rate dropped significantly. In February 2006, Zhejiang's textile exports were 1.4 billion, down 5.3% compared with same period last year. Among them, clothing and accessories exports 780 million U.S. dollars, down 2.3%; textile yarn, fabrics and products exported 620 million U.S. dollars, down 8.9%. According to Ningbo Customs statistics, in February, Zhejiang textile products exported 143 countries, of which 67 countries of the export growth rate is falling, and its exports accounted for 87.3% of total exports. Zhejiang Province, the European Union and the United States particularly evident decline in textile exports, which exports to the EU 370 million U.S. dollars, exports to the U.S. 250 million U.S. dollars, decreased by 11% and 7.6%. 2. The lack of independent brands, products with low added value and technological innovation, low in the short term are difficult to overcome the shortcomings of Zhejiang textile and garment enterprises are mostly varieties of products are not high-grade, value-added products only advanced a few one-tenth of the country, and less Innovation and variety. Like all things Lee, Shanshan are so few independent...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Impact of Yuan Appreciation Essay
  • Essay about Impact of Globalisation on Indian Textile Industry
  • Textile Industry Essay
  • Textile Industry Essay
  • Technological Factor of Textile Industry Essay
  • The Impact of the Wto on the Textile and Clothing Industry in the United States Essay
  • Impact of Recession on It Industry Essay

Become a StudyMode Member

Sign Up - It's Free