As per different investigation it has been reported that Chinas exports of textile goods reached up to US$ 171.3 billion. And with this, China has covered up the position of doing one-third of the total global textile exports.The measured growth is around 20 percent in the year 2009. The export trade wasgradually developed after implementing an open policy by Mainland (China) in the year of 1978. During 2009 the Mainlands all major foreign trade partnerswere under scarcity. Mainland exports mainly the necessity products such astextiles and clothing in U.S.A. market and restructuring the U.S.A. economy. Year 2009 was a disappointing year for export sector. In this year, China's textile and garment exports was cut down by 11 percent as compared to year 2008,which was around US$ 154.12 billion.


But after that, due to deteriorated demand from majormarkets, China's textile exports achieved a growth of 25.2 percent in December2009, but apparel exports indicated a decline of 4.8 percent as compared to theprevious year. Since April 2009, there was a silence in the fast turn down ofChinese textile and garment exports to the Europe, U.S.A. and Japan, with thewhole-year figures were standing at US$ 36.06 billion, US$ 26.4 billion and US$21.33 billion respectively. Even if orders show a growing trend, some apparelcompanies not dare to lift up the prices, as they are worries that customerswill transfer orders to other regions.


From the present exports figures, it is obvious that RMBappreciation will impact positively, but by looking at the imports rates oftextile industry, the positive role of imports is still not unclear. During 2009,Chinese textile industry imports were reported to be around US$ 15.5 billion. Asthe textile industry contributes relatively high proportion of exports, theimpact of RMB appreciation will be great. Since, July 2005 total appreciationof Yaun is by 21 percent. For maintaining the relatively high growth rate,textile industry was under the situation of appreciating the Renminbi. But thesituation changed in 2009. When the worldwide exports decreased by 100 millionUS$, Chinas exports lowered down by US$ 18 billion. If the Yaun has risen morethan five percent, a significant number of small and medium scale textileindustry firms will face disaster as the average net profit margin of suchindustry not more than five percent. Many small and medium enterprises (SMEs)organization depends on exports, so lot of stop production altogether closed;household / local market is not likely to change overnight. Also these SMEstake in the surplus manpower is to promote the employment of the importantsocial unit. Generally flat, small step appreciation of the organization is moreeasily digested as once the closing is bound to a certain level, and pushed theunemployment within the rate is not conducive to social stability.


RMB exchange rate was affected bythe global crisis in 2008. RMB rose quicker with bigger margin against US$. InApril 2005, RMB exchange rate was around Yuan 8.8244=1US$, In June 2005, RMBexchange rate was around Yaun 8.2765=1US$, around 17.5 percent depreciation ofUS$, was reported against the Yuan and around 21.3 percent depreciation of US$ wasreported against the renminbi.


On 21st April 2010, RMB exchange rate was around Yuan6.8254=1US$ and on 27th May 2010, it was around Yuan 6.8297=1US$, Thanksto special attention on import and export business of cotton and textileindustry. The opening of the China-ASEAN Free Trade Area is expected to boost China's textile and garment exports. China's textile and garment export industry is likelyto see growth in both revenue and profits this year, but the gains likely notmore than ten percent. It has been predicted that by the end of this year, RMBexchange rate will be appreciated by another 3 percent. RMB exchange rate may be reachingup to Yuan 6.62=1US$.


In the present industrial situation, for the survival anddevelopment of textile based industries, it is very important to keep the RMBexchange rate stable. By keeping the RMB exchange rates stable China can provide sound financial environment. Not only that, it also needs to speed up theindustrial restructuring and correction in many things like export ratio, hardwork to develop domestic / local demand. All of these are not possible withoutGovernment support.


With the government support, textile industries also requireto accept the upgraded technology for improving the products quality, by thisway product value as well own export market can be improved.


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