Coping Strategies On RMB Appreciation For Textile Export Enterprises

The textile industry is the traditional industry of China, but also has been the vitalindustry of our national economy. As the largest export industry in China, however thetextile industrial was tied to the foreign market, also it’s very sensitive to the RMBexchange rates. However, since the exchange rate reform in2005, accumulatedappreciation of the RMB against USD has continued up to23.5%, this have badly effect onthe textile exports. Thus, the study of the countermeasures for China’s textile enterprisesagainst the exchange rate risk have became a very important and practical theory.This article take the static analysis and the comparative analysis as the combinedmethod to study the development of textile industry in China, based on the XX knittingcompany as the example, verified that the RMB appreciation would badly effect on theexporting of China’s textile products, and found that the enterprise only whom move fastand think forward can be successful, and those enterprises would seek change in businessmodel to keep survive in competitive global market. Last but not least, in the currentsituation of accelerated appreciation of the RMB, China’s textile enterprises should beself-started, the management should have positive thinking of RMB appreciation. At thesame time, in accordance with the production and management characteristics of China’stextile enterprises, this paper presents a wide range of effective measures to guardenterprises against exchange rate risks.