China's textile products are losing competitiveness

0 Comments | AFP, February, 2007

BEIJING (AFP) — Textile products from China are losing competitiveness as export tax rebates are being lowered and the currency is gradually rising, state media has reported.

The whole industry will lose strength in overseas markets if the yuan rises too much, the Beijing Morning Post said, citing a statement from the National Development and Reform Commission, the top planning agency.

A growing number of anti-dumping cases against Chinese textiles filed by trading partners also makes conditions tougher for the industry, the statement said.

It said the average profit margin of the textile sector was under 3.7 percent, or about two thirds of the average national industrial profit margin.

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