Tax Rebate Rate Rises Hard To Change Industry Decline, Industrial Upgrading Is The Key.

The export rebate rate of some textiles and garments has been raised by 2 percentage points this month.

Zhang Bin, an analyst with state securities, believes that the increase in tax rebate rate will not change the trend of industrial efficiency growth, and will not have a significant impact on the annual earnings of listed companies.

Hu Fusheng, chairman of Hubei interstate 3542, a large state-owned textile company, said in an interview that "far from being able to get rid of near thirst", spinning enterprises are facing the problem of whether they can live.

"The tax rebate rate increase is mainly a one-time income for enterprises, and the net interest rate that will not be completed before the announcement will increase by 2%.

After the announcement, foreign dealers will adjust their prices according to the tax rebate rate, reduce the quoted price, the actual domestic enterprises' income comes from the increase of orders, and at least half of the increase in tax rebate rate will be taken away by foreign businessmen without compensation.

Zhang Bin said.

Zhang Bin believes that the increase in the tax rebate rate of spinning and weaving clothing is conducive to increasing exports, which is beneficial to improving export growth, but it is mainly conducive to small and medium enterprises, and has little effect on large and medium-sized enterprises. At present, industry integration requires the survival of the fittest and the elimination of a small part of production capacity.

As for the view that the tax rebate rate is not conducive to industrial upgrading, Wang Wein, chief editor of the first textile network, thinks that the sharp deterioration of the industrial situation and the frequent failures of enterprises this year have resulted in the gradual loosening of the national industrial policy in the face of the decline in the competitiveness of enterprises, the narrowing of profit margins and the apparent decline of textile economic growth.

"In the process of promoting the upgrading of the textile industry, the government must give due consideration to the level of economic development in China. In particular, we must attach importance to the survival situation of the small and medium sized textile enterprises that are harmed most in this round of adjustment, undertake the responsibility of industrial upgrading and upgrading," water fish farming ", and actively help them through the labor pains of structural adjustment.

He said.

As for the role of export tax rebates and the plight of textile enterprises, Hu Fusheng said, "the export tax rebate rate has been cut down in the first two years, and many customers have shifted their orders to Pakistan and India. For example, this year's Canton Fair is very cold.

Now it will be up to the second half of next year, and it will take a process.

Secondly, the subprime mortgage crisis in the United States has a great impact on China's textile industry, and the consumption of the United States has declined. In the past two years, the number of products exported to the United States has increased and prices remain unchanged, mainly because of the overcapacity of the textile industry, the fierce competition and the rapid rise in costs.

Hu Fusheng pointed out that the biggest problem facing many textile enterprises is whether they can live or not, whether they can stop the flow of funds and whether they can stop the work. The tight loans will make them worse. For example, Shandong Cherry Blossom group can not get loans.

In addition, the RMB exchange rate is also a big problem. In 2008, the appreciation of RMB has exceeded 7%, exceeding the magnitude of one year in 2007. At present, there is little possibility that the currency will be stable in the short term. This will definitely reduce the profit of export.

At the same time, the uncertainty of exchange risk also makes enterprises afraid to take orders and receive orders.

"The situation is continuing to deteriorate, and the industry situation is very grim."

Hu Fusheng said, "some textile enterprises rely on real estate, thermoelectricity and electrolytic aluminum to make profits. Because of vicious competition, we all feel very difficult, not to mention other enterprises."

It is understood that the 3542 Chinese companies in 2006 also belong to the top 20 of China's textile enterprises, and Hu Fusheng is one of the ten most innovative figures in the textile industry in 2007.