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    The State Is Studying New Policies To Support The Textile Industry.

    2008/8/19 16:31:00 19

    Textile Industry Supporting Policy

    Recently, Zhu Hongren, director of the Bureau of operation and coordination of the Ministry of industry and information technology, publicly stated that following the increase in the export tax rebate rate of textile and clothing in the previous period by 2%, there are still some policies and measures that are being formulated in the process of research, including credit, taxation, support for small and medium enterprises, and the encouragement of enterprises' independent innovation.

    "At present, the textile industry is facing three major pressures: the first is RMB appreciation, and the second is the rise in labor prices. In the case of economic downturn and rising costs, the shortage of funds ranks third.

    "Analysts say that the first two factors are the general trend and difficult to change. Relatively speaking, with the support of the government, the funds may be eased.

    Recently, the central bank has the conditions to relax the credit scale of about 230 billion yuan, mainly to small and medium enterprises, to ease the financing difficulties of SMEs.

    Specifically, the four state-owned commercial banks and joint-stock banks increased their loans by 5%, for special loans such as small and medium-sized enterprises, and local financial institutions such as city commercial banks increased by 10%, mainly for SME loans.

    But the industry is not optimistic.

    It is hard for analysts to interpret the issue of credit line loosening and whether it will benefit the textile and garment industry.

    "This is because banks have autonomy, and they love the poor. Considering the risk of loans, the scale will be held by the banks.

    Zhao Meiling, an analyst at Anxin securities textile industry, said that the vast majority of the textile and garment industry is small and medium-sized enterprises. Although the credit scale of this increase has additional conditions, the loans to small and medium-sized enterprises that are really short of money should not be too large. Most SMEs in the industry still have difficulty obtaining loans from banks.

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    Read the next article

    The Adjustment Of Policy Is Limited. The Integration Of Textile And Garment Industry Is Difficult.

    Garment and textile industry is an exception. Although the clothing and textile enterprises are all over the world, the survey found that the textile industry or clothing giants did not intend to integrate them. They were more willing to invest their energy and capital in such areas as brand building, channel building or cross industry diversification.

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