Does Foreign Exchange Reform Have Little Effect On Shoe Companies?

When we discuss the negative effects of RMB appreciation on the employment of export oriented enterprises, we may as well recall the history. In fact, the appreciation of the renminbi in the past did not harm China's exports and employment. The renminbi has appreciated 17.5% against the US dollar since its decoupling from the US dollar in July 2005, but China's share in the US import market has continued to expand, even after the outbreak of the financial crisis.

CICC analysts pointed out that China's exports were not affected.

But the recent experience of Chinese clothing and footwear exporters shows that these worries are unreasonable.

The main competitors of Chinese clothing and footwear export enterprises in the US market are from Mexico.

In 2009, China's share of clothing and footwear market in the United States was 46%, while Mexico was 37%.

Although the renminbi has appreciated all the way since the Mexico peso in 2000, China's share of the textile and clothing market in the United States has risen from 21% in 2000 to 48% in 2009.

After the outbreak of the financial crisis, from September 2008 to March 2009, the yuan appreciated 39% against the peso in Mexico, which led to a substantial increase in the cost of Chinese export enterprises relative to its competitors.

The share of Chinese exporters in the US clothing and footwear market actually dropped from 46% to 42%, but as the renminbi stabilized against the Mexico Peso exchange rate, the market share of China's export enterprises rebounded rapidly, even higher than the level before the renminbi appreciated substantially.

Besides,