The frequent depreciation of the dollar has driven down profits over the last month, as the company normally negotiates and changes the prices of orders with clients quarterly.
"Textile-export trading companies have been destroyed with the worsening economies in European countries, and we are struggling with a small number of clients making nearly zero profit in the past year," said Ye Fang, the manager of Michele Clothes Co Ltd.
The company expects negative growth in earnings for the past year and demands from European countries to continue to gradually decline.
Ye said she planned to shut down the company next year if the situation gets worse because she cannot afford to lose more money.
Chen from the Bank of Communications expects to see improved export conditions in 2013, while Wang warned that a 10 percent trade growth goal for 2013 will be very difficult to attain because of uncertainties in developed markets. Also, foreign trade can no longer be the driving force of China's economic growth, Wang said.
He said the foundation for an economic recovery is not steady, and the government needs to expand domestic demand with measures including structural tax reductions.
Convenience-for-people measures for senior citizens in Beijing
Feedback
RSS
