Textile Enterprises Profit Margins Continue To Shrink

Ding Youyi, chairman of Fujian Jinjiang WorldCom Footwear Co., Ltd., said that in the past two years, the total cost of enterprises has increased by about 20%.

"Two years ago, the average price of a pair of shoes was $6, but now the price must be above 7.2 dollars."

Influenced by such factors as the sharp increase in costs, the weakening of external demand and the appreciation of the renminbi, the export growth rate of China's textile, clothing and other labor-intensive industries has slowed down sharply this year. Many small and medium-sized enterprises in the Yangtze River Delta and the Pearl River Delta are facing difficulties in shutting down or even closing down.

As one of the "three carriages" driving China's economic growth, exports play a very important role in China's economic development.

The figures for the past 7 months show that China's exports grew by 22.6% over the same period last year, and the growth rate is still relatively optimistic. However, compared with the same period last year, export growth slowed down by 6 percentage points.

"Enterprises, especially small and medium-sized enterprises, need to speed up product upgrading and technological innovation to improve their competitiveness, and also need to create a relatively relaxed environment in policy."

Chen Naixing, director of the SME research center of the Chinese Academy of Social Sciences, said.

The slowdown in export growth and the decline in profits of some export enterprises have attracted the attention of the central government and relevant departments.

Recently, the state has increased the export tax rebate rate of some textiles and clothing, and commercial banks will be allowed to increase the new credit line in the second half of the year. A series of measures such as financial "blood pfusion" and "burden reduction" have also been introduced all over the country, with the purpose of helping competitive export enterprises to tide over difficulties.

Faced with the "forced" environment at home and abroad, many export enterprises have also changed the "pressure" as a "driving force" to ease the difficulties by increasing investment in scientific research, adjusting the structure and taking the road of independent innovation.

The responsible person of the Ministry of Commerce said that our country will limit the export of products of "two high and one capital" while actively optimizing export structure, changing the mode of foreign trade growth, focusing on supporting the export of key products such as aerospace, shipbuilding, railway locomotives, automobiles and parts, machine tools, construction machinery, communication equipment, consumer electronics, new materials, medicine and so on; encouraging the export of private brand and independent intellectual property products; and studying and putting forward the adjustment plan of export tax rebates for electromechanical and high-tech products.

Since the beginning of this year, Suzhou has promoted the upgrading of processing trade, expanded the use of foreign capital and stepped up the pace of "going out" as a breakthrough to enhance the level and capability of participating in the international industrial division of labor, extending the manufacturing industry with processing industry to the "smile curve" at both ends of R & D and sales.