It Is Difficult To Adjust The Export Policy Of Forced Export By Textile Enterprises.

There may not be any significant adjustment in export policy during the year, but the "warming up policy" expected by enterprises is also unrealistic.

Yesterday, people close to the decision-making level disclosed the above policy orientation.

Recently, some enterprises and associations including footwear industry and textile industry have made suggestions to the Ministry of Commerce. They hope that the government will observe the present situation of export enterprises, and do not introduce stringent export policies during the year. It is also hoped that the processing trade policy and export tax rebate policy introduced last year can be loosened.

People in the Guangdong business community say that many enterprises, including shoemaking and textile companies, and business associations have made suggestions to the Ministry of Commerce. They hope that the policy level will not be put pressure on them, and that they hope to introduce a "warming up policy" to help enterprises tide over difficulties.

Beginning in 2006, under the pressure of reducing surplus, the export policy has tightened again and again. The decision-making level has reduced the export tax rebate rate of commodities in several ways. It has speeded up the adjustment of "natural surplus" processing trade, expanded the catalogue of prohibited products in processing trade, and promulgated the catalogue of processing trade restricted commodities at the end of July last year.

However, this policy has been fermented and released this year, but the influence of the US subprime mortgage crisis has worsened and the export situation is very delicate.

In addition to the appreciation of the renminbi and the implementation of the new labor contract law, a number of labor-intensive enterprises in Guangdong and other places have collapsed in large scale.

In fact, at the end of March, the China Textile Industry Association has completed the field investigation of the 6 provinces, and will submit its findings and policy recommendations to the policy research center of the State Council in the near future.

It is reported that the association has made suggestions in the report, hoping that the state will give full consideration to the export tax rebate for textile and clothing, or at least stop the tax rebate reduction.

In the past two rounds of export tax rebate adjustment, the textile and garment industry tax rebate rate dropped from 13% to 11%.

In terms of shoemaking, the relevant organizations of Guangdong also submitted the report to the policy research center of the State Council in March, including similar policy recommendations.

Last Saturday, the Ministry of Commerce issued a new catalogue of prohibited categories of processing trade.

On the basis of last year's catalogue, the government added 39 prohibited categories.

This slight adjustment has little effect on the foreign trade industry. However, the timing of this policy has led to speculation about the export policy of the whole year.

Close to the Ministry of Commerce, the researchers said that the adjustment of the policy is not very strong, which is consistent with the expectation that the export policy will not be substantially adjusted in the whole year.

The continued expansion of the prohibited catalogue also shows the government's determination to continue to tighten up processing trade and regulate "two high and one capital" (high pollution, high energy consumption and resource based products).

People close to the decision-making level said yesterday that the central government should worry about the impact of subprime lending and other events, and that there should be no significant adjustment in the export policy during the year. However, the "warming up policy" expected by enterprises is also unrealistic.

He said that the government could not negate the previous policy unless the export situation was "very, very miserable".

The current situation is not the same. He said that policymakers are still observing export data. Although exports were not optimistic in February, policy decisions could not be made based solely on monthly data.

In February, China's export growth dropped to 6.5%, far below the level of 25% last year.

A local economic and trade system yesterday also said that in February, the Ministry of Commerce had a research group to go to Guangdong for research. At that time, the local government was informed that the export policy would not change much throughout the year, and that the expansion of the prohibited catalogue of processing trade was also expected to be postponed.

However, he said at the same time that it is hard to say that "these decisions are not has the final say of the Ministry of Commerce and the key is the attitude of the central government."

Those who are close to the decision-making level also say that the Ministry of Commerce has a very firm attitude towards the adjustment of the prohibited catalogue of processing trade, and the views are also consistent. Enterprises and parts of the region hope that this year's policy can be callback. It is very unrealistic to ensure that the turnover of gold and Taiwan accounts is not expected to be loose, and colleagues expect that the pace of the adjustment of processing trade policy may slow down.

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