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BIZCHINA> News
Yuan appreciation impacts textiles
By Tang Fuchun (China.org.cn)
Updated: 2006-05-29 10:24

Their Say:

Jiang Zhe, Vice President of the China Chamber of Commerce for Import and Export of Textiles (CCCT):

Because it is not the first time for RMB exchange rates to be adjusted, the impact (on the textile sector) is probably not big.

Wang Yong'an, Assistant to the Head of the Foreign Trade Department of Zhejiang-based Langsha Group:

Once the yuan trades at more than 8 yuan to one US dollar, some orders signed before will report losses. Fortunately, manufacturers now don't take long-term orders any more. Thus, the small slight appreciation causes no big losses. More important, my company added the clause "price to be adjusted in accordance with any change in exchange rates" to all our contracts last May. Our clients have agreed to accept such a clause.

Zhang Qingzeng, Board Director of Guangdong Silique Int'l Group Garment Co. Ltd:

Since last year, my company has taken measures to counter changing RMB exchange rates. For example, we only take short-term and small-scale orders, and negotiate with clients to split a big order into small ones so that we can ward off risks. Moreover, at the 99th China Export Commodities Fair in April, my company raised prices by five percent. This allows us to endure any currency appreciation.

Yang Shuncheng, Head of the Foreign Trade Planning Department of Jiangsu-based Hongdou Group:

The fluctuation of (the yuan) will definitely have negative effects on the textile sector and will further squeeze profits of textile manufacturers. Yet, if the exchange rate is adjusted slowly, the majority of manufacturers might be able to endure any currency appreciations.


(For more biz stories, please visit Industries)

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