Large Textile And Garment Enterprises Are Shutting Down This Year.

Textile exports tighten policy loosening for two years

China's economic tone

In the precarious cost and international market, China's textile and other low-cost manufacturing industries were pushed into the most difficult position in history in 2008.

However, as the risk of economic downturn has increased, the export tightening policy that has been two years old is gradually loosening.

The tax rebate policy is expected to be introduced this month.

Yesterday, some sources revealed that the export tax rebate of viscose fiber will have a huge adjustment, which is expected to be announced in mid 7.

"Up to 10 percentage points, up from 5% to 15%," he said.

Although the final result will have to wait for the announcement of authoritative departments, the surprising adjustment is enough to make many textile enterprises jump.

Market rumors, most textile export tax rebate rate will increase by 2 percentage points, clothing export tax rebate rate increased by 4 percentage points.

Viscose fiber is widely used in textile and garment manufacturing as a raw material of chemical fiber.

Due to the "two high and one capital" products (high pollution, high energy consumption, resource type products), the tax rebate rate was reduced by 5 percentage points in the export tax rebate adjustment in July last year.

The expected pullback seems to be a footnote for the difficult situation of the textile industry.

China has cut down the export tax rebate rate of some industries since 2006, so as to reduce the high trade surplus and promote the industrial upgrading of enterprises.

Since July 1, 2007, the duty rate for garment export tax rebates has dropped from 13% to 11%.. However, the reduction of tax rebates has added to the worsening export of textile products.

Under the pressure of cost, enterprises dare not take orders.

According to statistics, at present, the profit margin of 2/3 of China's textile industry is only 0.62%.. For these enterprises, "pformation pains" are often related to life and death.

"Foreigners are all Chinese experts now. They are better than us."

Yu Weiqiang's predicament is quite representative in Shaoxing. His clothing manufacturing company is mainly engaged in exporting garments to the United States. However, in the case of rising internal costs, his desire to raise prices is wishful thinking.

"The price depends on whether the customer agrees or not, so we are afraid to lose money in order."

In distress, not only small and medium-sized enterprises, but in early April of this year, the famous cherry blossom textile in Shandong was brought to a great shock by the fragmentation of capital chain. After that, the news of the recent closure of Laiwu Galaxy textile in Shandong also spread like wildfire.

Data from the first textile network show that in the 12 large textile listed companies selected, the gross margin of sales of 9 companies has declined to varying degrees, and the cotton textile industry investment has also suffered negative growth for the first time in the first quarter of this year.

Supporting policies do not violate industrial upgrading.

At present, there are still differences in policy adjustments.

On the one hand, lobbying by the association has already started. They say that raising the export tax rebate rate is conducive to reducing the export cost of textile enterprises. On the other hand, people worry that the export tax rebate rate will protect a large proportion of low profit enterprises, which is a historical setback.

Informed sources told reporters, in fact, the latter situation is precisely the decision-making level concerns.

"In fact, as early as March this year, the ministries and commissions' research has been launched."

In this regard, industry observers Wang Qianjin believes that the introduction of supporting policies is not contrary to industrial upgrading.

"The policy is adjusted according to the changes in the external situation.

This year, the subprime mortgage crisis, the accelerated appreciation of the renminbi and the aggravation of inflation were not anticipated in the previous policy context.

In the increasingly severe environment, enterprises are no longer able to cope with industrial upgrading independently.

On the other hand, the textile and garment industry has 20 million working population. Once the textile and garment enterprises collapse in large areas, they will also have a greater impact on social stability.

Statistics show that the increase in the export tax rebate rate will increase the net profit of the textile industry by about 13 billion 229 million yuan.