According to recent statistics, in the third quarter of this year, Guangdong Province exported clothing and textiles worth US $2.90 billion down by 26 percent compared to the same last year.
In addition, exchange rate of RMB has increased in the past two years adversely affecting the textile and clothing industry of Guangdong Province. As a consequence, textile dyeing and other supporting industries are also suffering a setback.
To add to this, the US and EU have started implementing the SA8000 society responsibility standards which is particularly aiming to enforce stringent rules over Chinese exports of textiles and clothing.
Following this, not only did the production cost of Chinese exports soar high, the domestic production cost like labor and raw materials have also gone up considerably. Besides, competition from countries like Vietnam and Bangladesh is also getting stronger.
Fibre2fashion News Desk - China
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