Chinese cotton textiles producer Weiqiao Textile Company Limited saw its profits soar in the first half of the year, thanks to booming domestic demand.
A statement by the company said that the Chinese economy had maintained steady growth momentum for the company. It said the country’s Government had implemented a series of positive fiscal policies and stimulus measures to expand domestic demand.
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Based on statistics released by China Customs, Weiqiao said accumulated exports of the PRC textile and apparel products amounted to approximately US$88.9bn, representing a period-on-period growth of approximately 22.0%.
Zhang Hongxia, Chairman of Weiqiao Textile, added: “Uncertainties will still remain in the PRC textile industry in the second half of 2010. In the second half of 2010, with the continuing recovery of the PRC economy, RMB is likely to resume appreciation. In addition, in face of the challenges such as rising cotton prices, increasing labour costs and energy costs, the profit margin of the PRC textile enterprises may be squeezed further.
“Trade friction, to a certain extent, may also affect the future growth of the industry. However, the PRC textile industry may also benefit from a number of favorable factors. The external economic environment has been picking up gradually with rising demand while the domestic market grows steadily. The continuing structural changes and transformation, and the operational advancement would generate opportunities to the PRC textile industry.”
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