The Export Tax Rebate Rises And The Textile Industry Gets Sick.

China's textile industry is verifying this ancient Chinese saying that the prescription of the export tax rebate increase can not immediately restore the deeply involved Chinese textile industry.

"Now the industry has entered a bad situation, I hope the government can give more concessions."

Gao Yong, vice president of the textile industry association, said that the export tax rebate adjustment of the textile industry is the "care" that the textile industry association has written to the State Council for 4 months.

However, the NDRC is obviously unable to meet the further requirements of the textile industry association. "In fact, we have been studying the situation of textiles, but it is difficult to reach a unified view."

People from the Economic Development Bureau of the NDRC told reporters, "we must see that the labor-intensive enterprises are faced with the plight of survival, and the rescue policy for the textile industry alone can not be too much."

It has been revealed that the focus of the two sides' policy is the tax preference for the textile industry.

Raising export tax rebates is hard to save

From the second half of 2007 to 2008, China's coastal manufacturing enterprises suffered from export disadvantageous and large scale closure due to the factors such as lower demand in the United States, appreciation of the renminbi, rising labor costs and rising raw material prices.

In the 1~6 months of this year, China's textile and clothing exports were 81 billion 700 million US dollars, an increase of 6.4 percentage points from the same period last year.

The bailout policy is always tardy. In the textile industry association's letter of the State Council's request for raising export rebates for nearly 4 months, the bailout policy was released.

Since August 1st, the export rebate rate of some textiles and clothing has increased from 11% to 13%, and the export tax rebate rate of some bamboo products has increased to 11%.

"4 months ago, the industry was just not very good. Now it's a bad situation. We can't expect this policy to change the industry situation."

Gao Yong, vice chairman of the textile industry association, was disappointed. "Raising 2 percentage points is just a part of the loss of the enterprise."

Written by the State Council, after the two sessions were held in April this year, the textile industry association organized the national survey to complete the compilation of the information and submit it to the State Council.

"The results of the survey are quite unexpected," the survey participants said. "Guangdong's bankruptcy is the most serious."

Subsequently, the textile industry association predicted that in the second half of 2008, the textile industry will reach the bottom of the valley, and the export tax rebate will be lowered at this time.

In addition, employment problems caused by the closure of factories are coming.

It is understood that the scale of employment in the textile industry reached 20 million.

In the industry, there is an incident of arrears of factory workers' wages.

In recent years, Li Dongsheng, vice president of Si Li group, who has encountered many labor shortage, has told reporters that the problem of shortage of migrant workers has not appeared this year. "Instead, we are choosing workers."

According to people of the NDRC, "it is precisely because of the large number of people employed in the textile industry that the government has given high attention."

Textile enterprises "sell themselves" to survive

Not to sell themselves will face greater losses. "Many medium-sized enterprises have come to look for buyers," Han Jiasheng, a textile industry association project manager, recently met with many old friends in the industry at a textile machinery exhibition held in Shanghai. These people are all worried. "They want to see at the exhibition what companies are rich enough to buy them."

Han Jiasheng introduced, "in fact, most export oriented enterprises should sell themselves to domestic enterprises."

The dealer, who once made clothes for Adidas and WAL-MART, was a member of the "selling" people. In 2006, he spent 6 million yuan on sewing machines and other clothing machinery. Now, because of the unfavorable export, he turned off the factory and the equipment could only be sold. "This morning, someone offered 500 thousand yuan to buy the equipment I bought at 6 million yuan."

Lou min is very helpless, "I hope to find a better buyer."

However, enterprises in good condition are unwilling to accept the offer.

Chen Yongbin, general manager of M·SUYA trousers, told reporters, "not long ago, there was a government introduction that wanted us to buy a clothing company, but we did not consider it."

M·SUYA is an enterprise that mainly focuses on domestic sales and chain development. "We are doing a good job and are expanding to buy new production lines.

We prefer to build new production lines or buy bankrupt enterprises. "

Chen Yongbin's acquisition of the factory is not a matter of money. "The relationship with the local government, the unemployment of workers, and the integration of the original team will be hindered."

Only part of the restructuring of the government will make progress.

Not long ago, the Shandong Sakura group, the top 20 of the original textile industry, was integrated by Ruyi group under the help of the government.

Textile Industry Association told reporters, "this enterprise already has some production lines to stop production."

Sakura Group Office official said, "there has not been any information about the production line shutdown, but the survival of the enterprise is indeed very difficult."

Debate on policy bailout

It is understood that the textile industry association's application for saving the city has been awarded the two instruction of "the highest level" and "pay close attention to it".

"The key point of policy consideration is that the textile industry is related to the employment of 20 million migrant workers, and the two is that the export of textile industry has a large advantage, and now it is under a great impact. It should be emphasized and supported by policies."

People of the NDRC revealed the policy orientation to reporters.

Gao Yong, vice president of the textile industry association, told reporters that the next policy will come from the financial sector.

"Now textile enterprises are facing a major problem is credit tightening, loans are difficult, some enterprises even seek loans through private lending."

Gao Yong said, "now we need to increase the scale of credit for textile enterprises."

It is understood that the content has also been written into the textile industry association's "letter to the State Council".

Because the textile industry is a low profit industry, liquidity is particularly important for enterprises.

Shandong Sakura group, the top 20 of the original textile industry, was integrated by Ruyi group because of its liabilities of 890 million yuan. "After integration, a portion of bank loans can be returned."

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