The very prestigious Canton Fair commenced its 103rd edition in Guangzhou City, China, on April 15. Experts have reported that almost all the Chinese textile and clothes enterprises participating in the fair have increased their export prices by 3 to 5 percent.
The rate of appreciation of RMB against US dollar has crossed over 4 percent and in such grave circumstances, exporters are left with no other alternative but to increase their export prices.
Although, some other textile and apparel companies have directed their business towards the domestic market, the experience has not been very satisfactory because of inadequate sales channels.
Presently, a large number of Chinese textile and clothes enterprises have taken resort to using European dollars to escape the adverse impact of depreciating dollar. As a result, it is anticipated that the quantity of American exports will drop as low as 20 percent this year.
Fibre2fashion News Desk - China
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