The Negative Growth Of Garment Export In May Will Increase The Export Rebate Rate Of Textile Industry.

Textile and garment industry, which has been at a low level in recent months, is expected to usher in a "rescue market" policy.

Recently, Chen Shujin, vice president of the China Textile Industry Association (hereinafter referred to as "China Textile Association"), told our reporter that the government will formulate special policies to maintain the healthy and sustainable development of the textile industry.

At present, Ou Xinqian, Vice Minister of industry and information technology, has taken the lead personally, and ministries and commissions including the Ministry of Commerce and the Ministry of finance will take part in this work.

"We are working with other departments to study relevant trade policies, including the adjustment of export tax rebates."

In June 26th, an official of the Ministry of foreign trade of the Ministry of commerce also confirmed to our reporter.

This reporter learned that the previous discussions included a two percentage point increase in the textile export tax rebate rate and a 4 percentage point increase in the export rebate rate of clothing exports.

Chen Shujin said that the specific support policies still remain to be approved by the Ministry of industry and information technology and the State Council.

Clothing exports negative growth in May

When Cao Xinyu, vice chairman of the China Textile Import and Export Chamber of Commerce (hereinafter referred to as "China Textile chamber of Commerce"), saw the latest customs data, he was surprised by psychological preparation.

Customs Statistics released in June 23rd showed that the amount of textiles and clothing exported to China was $14 billion 9 million in May, an increase of 8.22% compared with the same period last year.

Among them, textile exports amounted to 5 billion 969 million US dollars, an increase of 23.02%, and clothing exports of US $8 billion 40 million, a decrease of 0.64%.

"The slowdown in clothing exports approaching 1% is not only lower than the growth rate of China's exports, but also lower than the 6% average growth rate of world textile and garment trade."

Cao Xinyu said.

In fact, since the first year of 2008, the shadow of "loss" has always shrouded the textile industry.

In March, China Textile Association went to various places to investigate. The results showed that a large number of enterprises were marginalized and at a loss.

As the most extroverted industry in China, the sluggish textile industry is particularly evident in exports.

According to customs statistics, in 2008 1-5, China exported 64 billion 328 million US dollars of textile and clothing, an increase of 13.69% compared with the same period last year.

Among them, exports of textiles amounted to 26 billion 685 million US dollars, an increase of 24.65%, and clothing exports of US $37 billion 643 million, an increase of 7.03%.

"The growth rate of clothing exports has declined or even negative growth. It is definitely not the problem of clothing, but the whole industry chain of printing and dyeing and weaving."

Cao Xinyu said.

Since 2007, Shandong Wei Qiao, China's largest textile enterprise, has voluntarily lowered its factory quotations for some of its cotton yarn and grey cloth. The reason for its announcement is "the reduction of market demand".

Most of the downstream businesses of Wei bridge are clothing and home textile enterprises. Their output is reduced, which directly reduces the demand for cotton yarn and grey cloth in China, and the output and price decrease.

"The textile industry will directly affect China's Cotton (15355, -70.00, -0.45%, bar) market after the recession, thus affecting the farmers' income."

Cao Xinyu said.

In April 2008, the China Textile Association submitted the findings to the relevant leaders of the State Council. It suggested that considering the involvement of the textile industry in the employment of about 20000000 people, the small and medium-sized enterprises would have difficulty in surviving and support policies for the textile industry.

In May, the China Textile chamber of Commerce went to several provinces to investigate the export situation of textile and clothing.

According to the China Textile Association, the troubles mentioned by enterprises at that time include: the appreciation of the RMB is too fast and unpredictable; the relevant rules of the labor law are not very operable, and the employees have not received real benefits; the cotton slip tax on imported cotton brings burden to the cotton spinning enterprises; the processing trade accounts have turned the funds of enterprises into a worse situation.

Since then, the China Textile chamber of Commerce has submitted the report to the Ministry of Commerce and suggested that trade policies for the textile industry should be adjusted moderately.