As RMB appreciation rate reached 6.64 percent, a piece of shirt exported to America from the Hubei province became cheaper by 10 RMB. This goes on to show the effect that RMB appreciation had on all export industries, particularly the textile and clothing sectors.
A textile exporter from the province said because of increase in RMB value, export decreased by three percent.
It is estimated that if RMB exchange rate goes up by even one percent more, the profit of textile and clothing industry will decrease by three percent and six percent respectively.
Clothing Association, situated in Wuhan city, suggested that though domestic enterprises must consider rate of RMB appreciation when signing contracts with foreign purchasers, the best way to deal with this problem was to increase the added value of products.
Fibre2fashion News Desk - China
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