Textile Tax Rebate Policy Has Been Passed And Will Be Selected.

China's textile industry is expected to regain its vitality under the pressure of cost.

Informed sources told reporters that the textile tax rebate rate callback policy has passed, and will be selected.

"The tax rebate of two points will mean an increase of two profit."

Wang Qianjin, editor in chief of China's first textile network and industry observer, said that for many Chinese textile enterprises whose profits have just exceeded 3%, "this has become the most direct way of rescue."

It is understood that in the export tax rebate policy, textiles will be callback from 11% to 13%, clothing from 11% to 15%.

At the time of the press release, the relevant departments did not confirm the details and time of the new deal, but the industry generally agreed that the tax rebate callback was already in the firing line when the macroeconomic background changed significantly.

"In fact, the plan has already been determined, but because the management has great differences in judging the industry situation, it is still making a comprehensive trade-off."

A textile enterprise official told reporters.

But like many other colleagues, he believes that with the release of textile and clothing export data in the first half of this year, the judgment of the plight of China's textile industry will become clearer.

"As a representative of China's labor-intensive industries, the impact of China's textile industry in the past year has been indisputable."

In order to alleviate the pressure of continuous trade surplus, the export tax rebate was drastically adjusted in July 1st last year.

Once the news was released, it aroused strong repercussions in various sectors of the country, and the profits of textile exporting enterprises were further diluted.

Chinese textile enterprises have been gaining competitive advantage by increasing production and squeezing profit margins.

Recently, however, more and more numbers begin to describe the industry's helplessness.

According to reports from global resources, 93% of the Greater China region's promotional clothing suppliers plan to raise export prices in 2008, due to rising labor and raw material costs. The increase in raw materials and manpower costs and the strengthening of the renminbi make it difficult for textile manufacturers to digest.

The price rise is also a reduction in volume. Since this year, the growth rate of China's textile exports has continued to decline, especially clothing exports. In May, the total export volume grew by 1.1% over the same period last year, a record low this year.

Wang said that the current tone of the country has been determined, that is, moderate support for the industry to tide over difficulties.

"Obviously we can not completely upgrade the industry and eliminate it."

Wang Qianjin believes that after the introduction of the textile tax rebate policy, it is not possible to exclude shoes, hats, toys and other industries from the possibility of launching relevant support policies.