1, RMB upvaluation .
　　 from the begining of exchange rate reform , the rate has been
　　 increased by 7%,that means we have suffered higher cost by 7%.
　　
　　 just as Mr. Henry Paulson, the finance minister of America said :
　　 from a long term way , the upvaluation is helpful for the quality
　　 improvemwnt of the China product . help to change the CHina from
　　 "world factory "to "world market ". help to change from "made in
　　 chane" to "created in China ".
　　
　　
　　2, tax refund
　　 the centural government has suddenly cancelled all the tax refund for
　　 the reactive dyestuff from 13% to zero .
　　 we have just conformed the price with some big customer , now we need
　　 discuss with them again to increase the price by 13%, to them , it is
　　 rather nonsense . every customer considered this was unfair and
　　 harmed by the policy .
　　
　　 we have only 3% profit before the new regulation . now if we can not
　　 increase the price successfully by 13%, we will suffer 10% loss .
　　
　　 3, environment protection .
　　
　　 we have 3 kinds of company in China.
　　 have built effluent treatment plant and kept in operation .
　　 have built ETP and operated only when inspection by the government
　　 without any ETP .
　　
　　 that means we are not under the same game rule .
　　
　　 we belong to the first company , we have our ETP , we operate it ,
　　 meet the requirment of national standard. it increased our cost
　　 dramatically .
　　
　　4 compare to the INDIA competitors
　　 sudden upvaluation of india Rupee make them more cheaper to purchase
　　 intemediates from CHina to produce dyestuff and compete against us .
　　
　　 language advantages : English is the first foreign language in
　　 CHina . but it is the sencond official language in INdia . it is more
　　 easy and convenient for them to conmunicate world wide /
　　
　　 technical service advantage : from the histry of the dyes . it moved
　　from Europe to Janpan and Korea , and then to Taiwan and india .then to China . India has longer histry than us , and they have more institutes and universities which majored in dyestuff .
　　
　　 5, Pakistan and Bangladesh and Viet Nam
　　
　　 the advantages of textile industry of china will be replaced by
　　 the above mentioned country.
　　
　　 even in Pakistan , more and more dyeing houses are moving to Bangladesh recently , in Bangladesh , the company can get 7% tax refund if they export the textile , and if they export to europe ,
　　they have zero duty , but from China and other contry need to pay 7% duty .
　　
　　 so companies in Bangladesh have 14% lower cost as compare with companies in other company .
　　
　　 Viet Nam :
　　 according to the report of > of Viet Nam , the Viet Nam Textile association society indicated that , the target turnover of textile in the year 2010 will be USD 120-150 , EXPORT will be 100-120 USD .
　　 they take the textile industry as the main industry . all the industry will get more privilege from the goverment .