Affected by factors such as the decline in consumer demand in Europe and the United States and the increase in labor costs, the orders of processing trade enterprises in the Pearl River Delta region decreased in the second half of the year, and the sharp decline in profits became more prominent. Due to the lack of work and the rising cost of living, many migrant workers voluntarily quit their jobs and embarked on the road back to their hometowns.

Since 2008, the appreciation of the renminbi, the rise in raw material prices, the increase in labor costs and environmental protection costs have all squeezed the profit margins of enterprises, the era of low cost is no longer, and the competitiveness of the manufacturing industry has decreased sharply. Due to the unprofitable, some companies are eliminated in the fierce competition, and some companies simply close their doors or move to other industries. Taking the textile industry as an example, Shanshan has tested the water in the field of non-ferrous metals, Youngor has entered the real estate industry, and Vosges has set foot in the photovoltaic industry. In addition, some textile business owners want to sell their factories, but it is difficult to do so.

Especially since 2007, affected by factors such as increasing pressure on the development of the industry and declining profitability, textile enterprises have obvious lack of confidence in the investment prospects of the industry. In addition, affected by macroeconomic control, the capital environment of enterprises has generally tightened, the scale of fixed asset investment in the textile industry has shrunk, and the growth rate of investment has dropped significantly, which directly reflects the recession of the industry.

Exports are less optimistic, relevant statistics show that since 2008, the European Union has contributed 64% to the growth of China's textile and garment exports, and it is precisely because of the high growth of exports to the EU that textile and garment exports can still achieve a year-on-year growth rate of 8.92%.

Recent fluctuations in the euro exchange rate indicate that the euro seems to be going to enter the downward channel, many textile export enterprises obviously feel the pressure of orders, if this trend can not be changed in the short term, the rapid decline in the growth of textile and garment exports to the European Union is inevitable, which will mark the growth of China's textile and garment exports will be downward, at the end of 2008 or early 2009 there may be zero growth or negative growth situation.

Due to concerns about the global economic outlook, the uncertainty of the euro exchange rate and the consumption expectations of the euro area market has increased, and the relevant data and changes indicate that the trend of depreciation of the euro against the yuan or the downward fluctuation cycle will be extended, and perhaps in half a year or a year, exports to the EU will be like the United States, and the number and amount will also show a pattern of decline. The decline in exports to the EU will mean that the textile manufacturing industry will have a more difficult time, the adjustment cycle is bound to be further extended, and the confidence to support enterprises through the winter is facing a severe test.

Of course, it is too early to conclude that the EU economy is already in recession. The EU will gradually implement a series of policy combinations to deal with the crisis, but there is considerable uncertainty about whether it will be able to reverse the economic decline in the medium term. If EU consumption and investment can be carried out steadily under the stimulus of strong policies, and GDP continues to grow, then the EU economy may only temporarily slow down, and the impact on China's textile exports will not be significant. Once the EU economy really falls into recession, it seems that it is difficult for China's textile exports to avoid a period of bad prosperity.

To sum up, it is not difficult to see that a series of difficulties and uncertainties have emerged in China's economic operation, which have stinged the most sensitive cost "nerves" of the processing and manufacturing industry. In addition, a series of policies to promote industrial transfer and structural adjustment have been introduced, energy conservation and emission reduction and labor contract laws have been implemented one after another, the threshold for environmental protection has been raised, and labor rights and interests such as minimum wage standards have been compulsorily restricted. The high cost of various complex factors, so that China's textile industry in the scenery is no longer at the same time, both lost a large number of labor, its labor costs are gradually rising, is expected in the first half of 2009 textile industry labor costs will continue to remain high.