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Silk products made in Jiaxing, East China's Zhejiang province. [Photo/cnjxol.com]

The accumulated export proceeds of silk product enterprises in Jiaxing, East China's Zhejiang province, have reached $420 million since the beginning of this year, a year-on-year increase of 57 percent, local media reported on Aug 26.

Eighty percent of the world's raw silk comes from China, of which one third comes from Jiaxing. The Jiaxing silk price index has become a weathervane for international silk prices.

The Jiaxing central branch of the State Administration of Foreign Exchange has encouraged enterprises to change production and sales paths, expand sales channels and facilitate the settlement of funds to help Jiaxing silk foreign trade enterprises solve problems caused by the sporadic COVID-19 pandemic and rising labor costs.

Zhejiang Jiaxin Silk Co Ltd was encouraged to adopt overseas consigned processing to carry out production and sales, thereby reducing labor costs.

With the help of Alibaba and Amazon, many silk production enterprises in Tongxiang have become involved in cross-border e-commerce, completing more than 30 export proceeds.

"The cross-border e-commerce sales model not only gives us access to more customers, but also facilitates capital settlement. According to the net settlement, the company's capital occupation and the risk of exchange rate fluctuations have been greatly reduced. Bank charges and exchange losses are reduced by more than 50 percent a year," said relevant personnel.