SARS hinders Jinjiang City’s footwear industry
Some idea of the impact that SARS is having on the Chinese footwear industry is provided by the latest figures from the shoe producing city,
During January-April, 2003, over 50% of the city’s larger footwear factories halved production, while the majority of the region’s 600 smaller factories virtually ceased production completely due to a slump in foreign orders. Domestic sales of branded footwear meanwhile declined 10%, leading to an inventory of over 500,000 pairs.
During the period, the city’s tax rates declined 2.8% to $11.8 million, year-on-year. Analysts predict that during the second and third quarters of 2003 income tax will drop $84.6 million. Exports are expected to decline $53.2 million and domestic sales $31.4 million.
The city’s winter trade is also expected to suffer as several Chinese trade fairs have been cancelled and business in the region is currently restricted.
