The Impact Of RMB Appreciation On Small And Medium-Sized Clothing Industry In Taizhou City And Countermeasures

Under huge pressure from Western countries,especially pressure from US and Japan,TMB has been in the state of appreciation since the July of2005.This has had a major impact on China’s export,particularly on the exportation of the clothing sector.Taizhou,which is known as "China’s garment city",is an important city in China’s clothing production and exportation. The clothing industry is one of the pillar industries of the city, and plays an dispensable role in economic development,social progress,employment and foreign exchange generation.But in recent years, with the continuous appreciation of RMB, the clothing industry of the city is now facing many difficulties and challenges.How to cope with the difficulties and challenges and open up a new way of development is a task which brooks no delay.Based on the theoretical analysis of the background and process of the RMB appreciation as well as the research document and research ideas of some domestic and foreign scholars, this thesis will explore the impact of RMB appreciation on export trade of small and medium-sized clothing enterprises in Taizhou from positive and negative aspects. Then, through the interviews and investigation of office departments and some enterprises, the thesis will further conduct detailed research and on-site interviews of three major small and medium-sized clothing enterprises in Taizhou to master their basic situation and problems and get an idea that Taizhou has been endowed with a richly natural environment, the obvious regional advantages, rich human resources, advanced equipment and the high attention of the government and other advantages. Facing the RMB appreciation impact, however, some clothing enterprises, with products of low added value, weak payment ability and weak anti-risk ability, suffered from one disaster after another. Combined with the increased prices of domestic raw materials, labors pay-rising and the cost growth of pollution control, these enterprises have experienced cost growth, decrease in profits and exports blocked.Then, with the help of various types of charts and data, the thesis will concretely analyze exports of Taizhou clothing industry and draw a conclusion that Taizhou clothing industry still has a strong competitive advantage in the international market and will usher a bright sunny day in future development prospect.In conclusion, the author thinks that the appreciation of RMB has brought both opportunities and challenges to the clothing industry in Taizhou. The enterprises should seize the opportunities. Through gradual adjustment of the business strategy, optimization of their industrial structure and promotion of product mix, the enterprises are to innovate their products and promote related branding strategy. Meanwhile, based on the preferential policies offered by the local government and advantages of the trade association,the concerned enterprises are to speed up the pace of cultivation and introduction of the business talents to achieve the resources superiority and optimize combination. Therefore, the enterprises could finally seek a new developing path in the near future to ensure the transformation and upgrading of themselves and enhance the competitiveness both home and abroad.