Arab Today, arab today global economic crisis hits china\s exporters
Last Updated : GMT 18:01:58
Arab Today, arab today
Arab Today, arab today

Global economic crisis hits China\'s exporters

Arab Today, arab today

Arab Today, arab today Global economic crisis hits China\'s exporters

Shenzhen - AFP

Wedding dress maker Wang Lujia earns a living making brides happy, but the global economic crisis is casting a chill over her small business in southern China. At her workshop in the manufacturing hub of Shenzhen, workers stitch and bead by hand wedding gowns designed for brides in the United States and Europe, which are now reeling from financial turmoil. \"The external crisis had a big impact this year. Business was not so good,\" Wang, founder of Divine Bridal Co, told AFP in her showroom filled with 600 wedding and party dresses. Over the past three decades, Shenzhen has grown from a sleepy fishing village to the heartland of China\'s export juggernaut. But as demand from China\'s key markets slows, companies here are suffering. As orders have tailed off, the cost of raw materials and labour have surged, with workers striking to demand higher pay. Meanwhile, China\'s gradually appreciating yuan currency is making products more expensive on overseas markets, trimming profit margins. And the worst might be yet to come for Europe and the United States, key export markets for China. Chinese officials have warned that the eurozone debt crisis and sluggish recovery in the United States threaten the world\'s second-largest economy. Export growth has fallen from 31 percent in 2010 to an annual rate of 21 percent in the January-November period of 2011, and is predicted to slow further next year. Struggling exporters are seeking ways to survive the economic crisis by exploring new overseas markets, turning to domestic consumers and finding new products. One company, Shenzhen Rongen Technology, is moving away from the LED screens it makes to high-end medical devices. \"The number of orders may be less, but the profit margins are higher,\" salesman Lu Daqing said. Dressmaker Wang is finding a new market for her bespoke wedding gowns, which can sell for up to $1,000, by turning to domestic consumers with cash to pay for luxuries like imported fabric and Japanese beads. \"Exports are not as good as the domestic market. The overseas market is weak,\" she said. Wang estimates the price of fabric has risen by as much as 40 percent in the past four years and says the rising cost of material and salaries for workers are pushing up her prices and discouraging overseas customers. Shenzhen city, her base, has the highest minimum wage in China and the local government plans to hike the level by another 14 percent to 1,500 yuan ($240) per month in 2012. Wang is already paying her employees far more, up to 4,000 yuan a month, and she plans to raise salaries to retain workers with skills to operate the sewing machines and do the labour-intensive beading for the dresses. \"If my costs are higher, then I have to sell for a higher price,\" she said. \"China\'s inflation is too high. If salaries don\'t rise, people will be in difficulty.\" China\'s inflation peaked at 6.5 percent in July -- the highest level in more than three years. It has since eased, but workers are feeling the pinch. In recent months, thousands of workers across China have downed tools in a series of strikes over low payment as persistent inflation raises the cost of living. The labour strife comes at a bad time for companies already struggling with higher costs and shrinking profits. Zeng Xiangjin, who manages a textile firm, said a stronger Chinese currency was erasing his narrow profit margins for exports like upholstery fabric. The yuan has risen steadily against the dollar since mid-2010, when Beijing relaxed a de-facto peg to the US currency imposed in 2008 to protect its exporters. Major trading partners have called for greater appreciation. \"Increasing material prices and labour costs contributed to our difficulties to some extent, but I still think the main cause is the exchange rate,\" said Zeng of Shenzhen Welltex Housewares Co.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today global economic crisis hits china\s exporters Arab Today, arab today global economic crisis hits china\s exporters

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016

GMT 05:15 2017 Tuesday ,21 February

Gold firms as markets await Trump tax plans

GMT 04:58 2017 Tuesday ,21 February

EU, IMF in ‘common position’ on Greece crisis

GMT 14:57 2017 Monday ,20 February

A giant initial public offering on track

GMT 14:50 2017 Monday ,20 February

Energy Market Research
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday