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    Change In Pain Is The Foundation Of Textile Industry.

    2008/4/22 16:17:00 18

    Change In Pain Is The Foundation Of Textile Industry.

    A recent survey conducted by the China Textile Industry Association showed that the number of textile and garment exports in China increased by 1.78% from 1 to February this year, and the increase in export volume also dropped to 8.19%, a 10.58 percentage point decline over the previous year. The profit margins of textile industry 2 / 3 in Jiangsu, Zhejiang, Shandong, Guangdong, Fujian and Hebei were 0.62%.

    A livelihood industry that accommodates about 20 million workers is facing a more difficult living predicament. The long term efforts of the textile industry to occupy the international market share are being "handed over to others".



    Experts analyzed that the restrictive policies such as the appreciation of Renminbi, the cost of raw materials and labor and other factors, the export tax rebate rate reduction, the processing trade margin system, the cotton import slip tax and the implementation of the new labor contract law and other restrictive policies, too much pressure on the textile industry, so that most textile enterprises in the short term can not digest the pain caused by these factors.

    Among them, the impact of RMB appreciation on China's textile industry is the most prominent.

    In China, the majority of small and medium-sized textile enterprises are mainly processing, the added value of products is not high, the premium is very low, and the ability to withstand a large appreciation of RMB is very fragile.

    At the same time, the textile industry as a whole is a labor-intensive industry. The increase in labor costs has brought about an increase in product prices. Coupled with the appreciation of the renminbi, the overall price of textile products has increased by 10% in the first two months of this year, and some foreign manufacturers have shifted their orders to other countries.

    In the international environment, various factors also have a negative impact on the export of textile products.

    As the main importing country of China's textile products exports, the economic situation in the United States has obviously declined, making the total export volume of our textiles from 1 to February this year increased by only 8.19%, compared with 40% in the same period last year, the growth rate has dropped by more than 30%.



    Chen Deming, Minister of Commerce, said recently that more attention will be paid to the textile industry, clothing industry, bags, shoes, toys and other industries that contain more labor and employment.

    Experts suggest that in the current situation, besides the policy buffering, such as the abolition of cotton import slip tax, the reduction of processing trade margin, the reduction and exemption of textile industry import machinery and equipment and other industries to encourage value-added tax policy, the fundamental way out for the textile industry lies in its own adjustment and painful changes.



    The industry pointed out that, in view of China's textile enterprises are mostly small and medium-sized enterprises, it is very important to improve the scientific and technological content and increase the value-added of the products and enhance the competitiveness of the market.

    At present, some large enterprises have the ability to "break through" from the international market competition through technology import and independent research and development.

    It is reported that China Textile Industry Association and other agencies in the more than 140 industrial cluster areas provide intermediary services for some small and medium-sized textile enterprises, and do the "bridge" between small and medium-sized enterprises and leading enterprises, so that small and medium-sized enterprises can match production with large enterprises, improve industrial efficiency and total body competitiveness.



    In addition, faced with severe export pressure, China's textile industry should also turn its attention to expanding domestic demand.

    The textile industry itself has 75% of its products for the domestic market.

    At present, domestic demand for textile industry has increased rapidly. The growth rate of clothing category is 28% this year, which is higher than the 16% growth rate of the whole social retail industry.

    Therefore, expanding domestic demand and easing the current plight of the textile industry can not be ignored.

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