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According to statistics provided by NDRC, during January to October this year, textile industry profits reached 66.4 billion yuan, a 31.1% year-on-year increase.

Besides the means of pricing to transfer to purchasers the pressure from RMB appreciation, textile mills in China has take other measures to cushion the pressure.

In an interview, a trader says that RMB appreciation has small influence on their company’s export. On the one hand, this company has taken advantage of bank service to avoid the foreign exchange risk; on the other hand, it has increased efforts on R&D, trying to reduce cost and improve export prices. The bank indicates that RMB appreciation has not impacted large export-competitive companies’ bottom lines this year.

A source with Youngor Group Co., Ltd. says that "China’s advantage in human resources still exists. As a labor-intensive industry, China’s textile mills should be competitive in the world market. Although RMB appreciation and export tax downward adjustment will have some influence on these companies, these factors will drive those lacking competitiveness out of the market, reduce vicious competition and improve the whole trade. The rate of gross profit of our company from garment export has been 30%, higher than other exporters. Thus, we have more maneuver space for RMB appreciation. Meanwhile, we will quicken the transformation from OEM to ODM and further improve our performance. "

source:cncotton.com