Export Tax Rebate Rises Hard To Save Textile Industry

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."